JATERA CORPORATION; ESTHER RANDLE MOORE, Plaintiffs - Appellants
US BANK NATIONAL ASSOCIATION, As Trustee, in Trust for the Registered Holders of Citigroup Mortgage Loan Trust, Asset-Backed Pass-Through Certificates, Series 2005-HE3; SELECT PORTFOLIO SERVICING, INCORPORATED, Defendants - Appellees
from the United States District Court for the Northern
District of Texas
SMITH, BARKSDALE, and HO, Circuit Judges.
HAWKINS BARKSDALE, CIRCUIT JUDGE:
issue in this diversity action is whether Texas law provides
a detrimental-reliance exception to a lender's right to
unilaterally withdraw a notice of acceleration; and, if so,
whether Jatera Corporation and Esther Randle Moore
detrimentally relied on the notice of acceleration by U.S.
Bank National Association (Bank) and Select Portfolio
Servicing, Inc. (SPS). Appellants challenge the district
court's, on cross-motions for summary judgment, denying
Appellants' motion and granting Appellees'. AFFIRMED.
2005, Moore and her husband purchased a house located in
Dallas, Texas (the property), by signing a Texas home equity
fixed/adjustable rate note in the amount of $99, 200, secured
by a Texas home equity security instrument. Through a series
of transfers and assignments, the Bank became the owner and
holder of the note and security interest.
her husband died in April 2008, all interest in the property
was transferred to Moore, who soon defaulted on her mortgage
payments. In March 2010, the Bank's then loan servicer
notified Moore of its intent to accelerate the note
(acceleration notice), demanding full payment of the debt
the Bank filed suit in state court in 2011 to obtain a court
order permitting foreclosure on the property, Moore signed an
agreed final judgment in November 2011, consenting to
foreclosure. In January 2012, Moore vacated the property and
signed a one-year lease for an apartment.
Bank's new loan servicer, SPS, sent a new notice of
default to Moore in November 2012, informing her: she could
cure her default by making a payment of $38, 343.99; but, if
payment was not received by December 2012, the note would be
March 2015, Moore conveyed her interest in the property to
Scojo Solutions, LLC, through a special warranty deed. One
month later, Scojo transferred its interest in the property
to Jatera Corporation.
SPS re-initiated the foreclosure proceedings originally
pursued by the Bank, Jatera filed this action against the
Bank and SPS in state court, seeking a judgment declaring the
lien on the property void because Appellees failed to
initiate foreclosure proceedings within the four-year statute
of limitations. In response, Appellees removed this action to
federal court on the basis of diversity jurisdiction.
district court, Jatera amended its complaint, asserting that
Moore's detrimental reliance on the acceleration notice
prevented Appellees from abandoning the acceleration in
November 2012. Moore was joined as a plaintiff. She filed a
complaint seeking a judgment declaring the lien on the
property void, and/or quieting title in Jatera's name
(also on grounds of her detrimental reliance).
parties filed cross-motions for summary judgment on all
claims. Regarding Moore's claims, the district court held
Moore no longer retained an interest in the property, and,
therefore, lacked standing. Concerning Jatera's claims,
the court noted the uncertainty surrounding the
detrimental-reliance exception under Texas law, but held
that, in any event, detrimental reliance runs to the benefit
of the party asserting it, and Jatera had failed to show it