Consumer Law : Foreclosure – Motion To Remand – Fraudulent Joinder

(1)Where homeowners brought claims including wrongful foreclosure, fraudulent misrepresentation and negligence against a lender and following removal challenged the district court’s denial of their motion to remand, the district court properly denied the motion due to the fraudulent joinder of the trustee.
(2)Where a district court dismissed with prejudice claims brought by homeowners against a trustee, the claims should have been dismissed without prejudice for lack of subject matter jurisdiction, and their claim against the lender for wrongful foreclosure and fraudulent misrepresentation were also properly dismissed but the district court’s order is vacated in part due to recent decisions by the Missouri Supreme Court regarding claims brought under the Missouri Merchandising Practices Act.

Judgment is affirmed in part; vacated and remanded.

Wivell v. Wells Fargo Bank (MLW No. 67158/Case No. 13-2763 – 17 pages) (U.S. Court of Appeals, 8^th Circuit, Gruender, J.) Appealed from U.S. District Court, Western District of Missouri (Erich Vieth, John E. Campbell, and Alicia Anne Campbell represented appellants on supplemental briefs) (Eric D. Martin and Jonathan B. Potts and Garry McCubbin represented appellees on supplemental briefs).

Read the full text of this opinion. (PDF)