March 08th, 2019

US Court of Appeals for the Fifth Circuit Opinions
Jatera Corp. v. US Bank National Assoc.

Docket: 18-10248
Opinion Date: March 7, 2019
Judge: Rhesa Hawkins Barksdale
Areas of Law: Banking, Real Estate & Property Law

Jatera filed suit against the Bank and SPS in state court, seeking a judgment declaring the lien on the property at issue void because defendants failed to initiate foreclosure proceedings within the four-year statute of limitations. After removal to federal district court, the district court held that the homeowner lacked standing as a plaintiff because she no longer retained an interest in the property. The district court also concluded that detrimental reliance runs to the benefit of the party asserting it, and Jatera had failed to show it detrimentally relied on the acceleration notice. The Fifth Circuit affirmed the district court's denial of Jatera's motion for summary judgment and granted defendants' summary judgment motion. The court held that detrimental reliance was not an exception to the lender's right to unilaterally withdraw an acceleration notice under Texas law. Therefore, in this case, the court need not determine whether there was such reliance, including whether Jatera was assigned the homeowner's detrimental-reliance claim, or whether the homeowner suffered such reliance.

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