The opinion of the court was delivered by: Paul L. Friedman United States District Judge
This matter is before the Court on the defendants' motions to dismiss.*fn1 For the reasons discussed in this Opinion, the motions will be granted, and this action will be dismissed with prejudice.
Plaintiffs Anthony and Darryl Jerdine bring this action against the Federal Deposit Insurance Corporation ("FDIC") in its capacity as the receiver for Washington Mutual Bank ("WaMu"), Select Portfolio Servicing Inc. ("SPS"), and DLJ Mortgage Capital Inc. ("DLJ") on claims arising "in Cuyahoga County, Ohio by virtue of a mortgage loan and related inter- temporal transactions associated therewith which concern the [p]laintiffs' primary residential real estate which is located in Pepper Pike, Ohio 44124[.]" Compl. ¶ 9.
Plaintiffs secured mortgage financing from WaMu. Compl. ¶ 21. At the closing in February 2005, they "executed Promissory Notes and Security Agreements in favor of . . . WaMu," id., which "retained a security in [the] Pepper Pike, Ohio [property]." Id. ¶ 22. For the first two years, the interest rate was fixed; thereafter the rate adjusted at six-month intervals. Id. ¶ 12. WaMu allegedly entered into this transaction knowing that plaintiffs could not repay the loan and that "[p]laintiffs likely would be placed in a position of default, foreclosure, and deficiency judgment upon not being able to meet their increased loan obligations once the fixed rate interest period expired and the adjustable rate applied[.]" Id. ¶ 11(e). WaMu "assigned the Note and mortgage to . . . SPS," id. ¶ 29, which in turn bundled the loan with others to be sold as a mortgage-backed security. See id. ¶¶ 11(g), 30, 108.
A. Foreclosure Proceedings
On August 23, 2005, WaMu initiated foreclosure proceedings in the Court of Common Pleas for Cuyahoga County, Ohio against Darryl Jerdine, ALJ Holdings Group, Ltd., and Citibank Federal Savings Bank "alleging breach of a promissory note for a 2005 mortgage secured by a mortgage deed for Ohio real property." Memorandum of Points and Authorities in Support of the [FDIC's] Motion to Dismiss ("FDIC Mem.") at 4; see id., Ex. 1 (Docket, Wash. Mut. Bank v. Jerdine, No. CV-05-570626 (Cuyahoga County Ohio Ct. Com. Pl. Oct. 23, 2005)) at 13. On February 12, 2007, a judge of the Court of Common Pleas adopted a magistrate's decision, decreed foreclosure for WaMu, and entered judgment in WaMu's favor in the amount of $1,017,663.33 plus interest. Id., Ex. 1 (Journal Entry, Wash. Mut. Bank v. Jerdine, No. CV-05-570626 (Cuyahoga County Ohio Ct. Com. Pl. Feb. 12, 2007)) at 7. The court authorized the Sheriff of Cuyahoga County to sell the property and to dispose of the proceeds of the sale. Id., Ex. 1(Magistrate's Decision, Wash. Mut. Bank v. Jerdine, No. CV-05-570626 (Cuyahoga County Ohio Ct. Com. Pl. filed Jan. 12, 2007) at 19-20.
Darryl Jerdine twice appealed this decision. FDIC Mem., Ex. 1 (Dockets, Wash. Mut. Bank v. Jerdine, No. CA-08-091823 (Ohio 8th Dist. Ct. App. July 18, 2008) and Wash. Mut. Bank v. Darryl Jerdine, No. 08-091444 (Ohio 8th Dist. Ct. App. filed May 16, 2008)) at 25-26, 29-30. Both appeals were dismissed. Id., Ex. 1 (Journal Entries, Wash. Mut. Bank v. Darryl Jerdine, No. CA-08-091823 (Ohio 8th Dist. Ct. App. August 18, 2008), and Wash. Mut. Bank v. Darryl Jerdine, No. CA-08-091444 (Ohio 8th Dist. Ct. App. filed June 2, 2008)) at 27, 29.
B. Challenges to Foreclosure Proceedings
In October 2007, Anthony Jerdine filed a civil action in the United States District Court for the Northern District of Ohio against WaMu, Judge Bridget M. McCafferty, the judge who presided over the foreclosure proceedings, and Cuyahoga County Sheriff Gerald T. McFaul, who sold the Pepper Pike property. See FDIC Mem., Ex. 2 (Civil Docket, Jerdine v. Wash. Mut. Bank, No. 07-cv-02984 (N.D. Ohio Oct. 1, 2007)). SPS and DLJ characterized the complaint as one to "[q]uiet [t]itle which included allegations of racketeering and alleging a private nuisance against [WaMu], Magistrate McCafferty and the sheriff who was to conduct the sale of the [Pepper Pike] [p]roperty." Defs.' [SLS] and [DLJ] Memorandum of Points and Authorities in Support of Motion to Dismiss Plaintiffs' Complaint ("Defs.' Mem.") at 2-3. Anthony Jerdine alleged that the Court of Common Pleas of Cuyahoga County had not been created by law, that the Ohio Revised Code had not been enacted, that Judge McCafferty did not properly hold her position, and that Sheriff McFaul had no authority to sell off the Pepper Pike property, such that the foreclosure sale was void. Complaint, Jerdine v. Wash. Mut. Bank, No. 07-cv-02984 (N.D. Ohio Oct. 1, 2007). Among other relief, plaintiff demanded that the district court void the Ohio Court of Common Pleas' January 12, 2007 decision, quiet title in plaintiff's favor, and enjoin the sale of the Pepper Pike property, which was to occur later in the month of October 2007. See id.
The district court dismissed the action sua sponte on the ground that a federal district court has no jurisdiction over challenges to state court decisions. Its opinion stated in relevant part:
In the present action, plaintiff directly attacks a state court's decision, and the action is clearly predicated on his belief that the state court was mistaken in rendering its decision against him. Any review of plaintiff's claims would require the court to review the specific issues addressed in the state court proceedings. This court lacks subject matter jurisdiction to conduct such a review or grant the relief as requested. In light of the foregoing, this action is appropriately subject to summary dismissal.
Jerdine v. Wash. Mut. Bank, No. 1:07-cv-2984, 2007 U.S. Dist. LEXIS 75288, at *3 (N.D. Ohio Oct. 10, 2007) (internal citations omitted). In short, "[u]nder . . . the Rooker-Feldman Doctrine, a party losing a case in state court is barred from seeking what in substance would be appellate review of the state judgment in a United States District Court based on the party's claim that the state judgment itself violates his . . . federal rights." Id., 2007 U.S. Dist. LEXIS 75288, at *2.
The Sixth Circuit affirmed without opinion. Order, Jerdine v. Wash. Mut. Bank, No. 08-3676 ...