United States District Court, S.D. Texas, Houston Division
MEMORANDUM AND OPINION
Rosenthal Chief United States District Judge
March 2019, Brandon Frank Padgett sued JPMorgan Chase Bank,
N.A. in state court to prevent Chase Bank from foreclosing on
a house owned by Padgett's brother-in-law, Charles
Foster. (Docket Entry No. 1-3). Chase Bank timely removed
based on diversity jurisdiction and moved to dismiss for lack
of standing. (Docket Entry Nos. 1, 4). Padgett responded and
moved to remand. (Docket Entry Nos. 7, 8, 10). Based a
careful review of the petition, the motions and responses,
the record, and the applicable law, the court grants Chase
Bank's motion to dismiss and denies Padgett's motion
to remand. (Docket Entry Nos. 4, 7). The reasons are stated
in detail below.
is a Texas citizen. He is married to Vanessa Laurent Foster.
(Docket Entry No. 1-1 at 14). In 1980, Vanessa Foster's
grandmother, Emma Lou Beavers Kimbro, made a will leaving a
house in Houston to Vanessa Foster and her brother, Charles
Foster, “to share and share alike.” (Id.
at 15). Kimbro died in 2005. Charles Foster was appointed as
the independent estate administrator, and he and Vanessa
Foster entered a “Family Settlement Agreement” to
share Kimbro's estate “in equity.”
(Id. at 16). In January 2007, Charles Foster
executed a special warranty deed transferring title in the
house to himself. (Id.).
2008, Charles Foster obtained a line of credit with Chase
Bank for $60, 000, secured by the house. (Docket Entry No.
1-1 at 12-16). Charles Foster defaulted on the loan in
October 2011. Chase Bank accelerated the loan, sent Charles
Foster notices of default and intent to accelerate, and
obtained a foreclosure order under Texas Rule of Civil
Procedure 736. (Docket Entry Nos. 4, 4-1, 4-2). A timeline is
October 2012: Chase Bank sent Charles Foster a notice of
default and intent to accelerate;
November 2012: Chase Bank's counsel sent Charles Foster a
debt-collection notice of “accelerating the maturity of
January 2014: Chase Bank filed the first application for an
expedited foreclosure with the state court;
July 2014: Chase Bank filed the second application for an
July 2017: Chase Bank sent Charles Foster a Notice of
Rescission of Acceleration;
October 2018: Chase Bank filed the third application for an
expedited foreclosure with the state court, which issued a
foreclosure order in March 2019.
April 2019: A foreclosure sale was scheduled.
(Docket Entry No. 1-1 at 15-16, 34).
to the loan documents, by September 2018, Charles Foster was
in default for $68, 298.17, and “the total amount to
pay off the loan agreement, contract, or ...