Fifth Circuit Affirms Dismissal of Truth in Lending Act and Fair Debt Collection Practices Act Claims Under Res Judicata Doctrine
In Hargrove v. Barclays Capital Real Estate Inc., Slip Copy, 2010 WL 2836167 (5th Cir. July 20, 2010) (per curiam), the Fifth Circuit recently affirmed a Southern District of Texas opinion in favor of a loan servicer in a lawsuit brought by pro se mortgagors who sought to quiet title on their property. In their complaint, the mortgagors asserted that as a result of the defendants’ wrongful actions they were facing the wrongful foreclosure on their home. The mortgagors raised state and federal claims, including a claim that the defendants violated the Truth in Lending Act and the Fair Debt Collection Practices Act.
The Fifth Circuit upheld the district court’s decision that the mortgagors’ federal claims were barred by the doctrine of res judicata because they had previously filed a complaint in federal court in 2007 raising the same claims against the same defendants. The Court noted that a claim is barred by res judicata if four requirements are met: (1) the parties are identical in the two actions; (2) the prior judgment was issued by a court of competent jurisdiction; (3) there is a final judgment on the merits; and (4) the same claim or cause of action are involved in both cases. The appellants only challenged the first two requirements, and despite being pro se, the Court would not consider the other two issues as a result of their failure to raise the arguments in their briefs.
The Court found that the record revealed that the Appellees in this case had been parties to the 2007 action. The Court also found that the Appellants failed to demonstrate that the 2007 judgment had not been rendered by a court of competent jurisdiction. As a result, the Court affirmed the judgment of the district court.