Davis v. ABN AMRO Mortg. Grp.et al. (In re Davis) (Case No. 05-72683; A.P. No. 06-07126) 02/22/2008
The Court granted a motion to dismiss a negligence claim under Federal Rule of Civil Procedure 12(c) because, under Virginia law, creditor (a residential mortgage loan servicer) is not subject to any common law duty or fiduciary duty owed to debtors (loan obligors) and instead merely is subject to a contractual duty. The Court also granted a motion for summary judgment against debtor-wife under Federal Rule of Civil Procedure 56 because debtors' loan is not in debtor-wife's name and therefore creditor could not have been negligent towards her or breached a fiduciary duty owed as to her. Further, the Court granted creditor's motion for summary judgment with respect to debtor-husband only because any duty owed by creditor is limited to the terms of the loan and debtors did not allege any breach of the terms of the deed of trust. Lastly, the Court held that debtors’ failure to mention only one of two creditors in relation to breach of contract litigation in their schedules for bankruptcy does not raise any equitable estoppel grounds against the assertion of any claims that may exist as a result of such litigation against either creditor.