Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Robinett v. Loancare, LLC

United States District Court, D. Idaho

January 3, 2018

DOUGLAS ROBINETT and LISA ROBINETT, Plaintiffs,
v.
LOANCARE, LLC, AMERICAN FINANCIAL RESOURCES, INC., and LAKEVIEW LOAN SERVICING, LLC, Defendants.

          MEMORANDUM DECISION AND ORDER

          DAVID C. NYE U.S. DISTRICT COURT JUDGE

         I. OVERVIEW

         This matter comes before the Court on Defendants' Motion to Dismiss. Having reviewed the record, the Court finds that the facts and legal arguments are adequately presented in the briefs. Accordingly, in the interest of avoiding further delay, and because the Court finds that the decisional process would not be significantly aided by oral argument, the Court decides the Motion on the record without oral argument. Dist. Idaho Loc. Civ. R. 7.1(d)(2)(ii). For the reasons set forth below, the Court GRANTS the Motion to Dismiss but also gives Plaintiffs leave to amend their Complaint.

         II. FACTS

         On January 1, 2012, Plaintiffs Douglas Robinett and Lisa Robinett granted a Deed of Trust in their home in Kamiah, Idaho, (hereinafter “the Property”) to Defendant American Financial Resources, Inc. (“AFR”).[1] At all relevant times, Defendant LoanCare serviced the indebtedness secured by the Deed of Trust. Under the Deed of Trust, Plaintiffs were obligated to maintain property insurance on the Property and to name the lender as an additional insured. Plaintiffs obtained insurance that satisfied this obligation through Foremost Insurance Group.

         The Deed of Trust provided that, “[i]n the event of a loss . . . . [a]ll or any part of the insurance proceeds may be applied by Lender, at its option, either (a) to reduction of the indebtedness under the Note and this Security instrument, . . . or (b) to the restoration or repair of the damaged Property.” Dkt. 11-2, at 3.

         On August 15, 2015, improvements on the Property were destroyed during the Clearwater Complex and Lawyer Complex forest fires.

         After the complete loss of their home, Plaintiffs made claims to their insurer. On August, 28, 2015, Foremost Insurance Group issued checks in the amount of $97, 650 and $30, 000, payable to Plaintiffs and LoanCare (as an agent/loan servicer for AFR). Upon receipt, Plaintiffs endorsed the checks and forwarded them to LoanCare.

         Thereafter, Plaintiffs asked that Defendants apply the insurance proceed to the debt secured by the Property. Plaintiffs then made several requests to Defendants for “payoff information” (documentation that their debt had been paid off). Plaintiffs were attempting to refinance their existing debt and facilitate the rebuilding of their destroyed home. Between September of 2015 and May of 2016, LoanCare failed to apply the insurance proceeds to the debt or to provide the requested payoff information.

         On November 6, 2015, the Kamiah Community Credit Union rejected Plaintiffs' application for refinancing due to the absence of payoff information that reflected the application of the insurance proceeds to the Plaintiffs' then existing indebtedness. On November 30, 2015, AFR transferred its interest in the Deed of Trust to Defendant Lakeview Loan Servicing, L.L.C. (“Lakeview”). However, LoanCare continued to service the loan.

         In April of 2016, Plaintiffs reapplied for financing from Kamiah Community Credit Union. On April 18 and 26, 2016, Kamiah Community Credit Union made additional requests to LoanCare seeking Plaintiffs' payoff information. Each time, LoanCare responded by providing a written payoff statement that did not reflect the application of the insurance proceeds to the debt.

         On or around May 11, 2016, Mortgage Electronic Registration Systems, Inc., acting as an agent for Lakeview, caused a Notice of Default regarding the subject real property to be recorded in the county land records in Idaho County, Idaho. Shortly thereafter, on or about May 20, 2016, LoanCare provided a payoff statement showing application of the insurance proceeds to Plaintiffs' debt. In June of 2016, after LoanCare applied the insurance proceeds to Plaintiffs' debt, Lakeview's interest in the Property, secured by the Deed of Trust, was released. There was some delay in releasing the interest in the Property-which allowed Plaintiffs to obtain new financing to rebuild their home-due to the Notice of Default filed in Idaho County in May of 2016.

         On September 5, 2017, Plaintiffs filed suit in Idaho County against LoanCare, Lakeview, and AFR. On October 12, 2017, Defendants removed this action to federal court on the basis of diversity jurisdiction. Plaintiffs assert five claims against Defendants: (1) breach of contract; (2) conversion; (3) negligence and breach of fiduciary duty; (4) bad faith; and (5) slander of title. Defendants have now moved to dismiss all five of these claims under Federal Rule of Civil Procedure 12(b)(6).

         III. ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.