United States District Court, S.D. Indiana, Indianapolis Division
Hon. Jane Magnus-Stinson, Judge.
Defendants Caliber Home Loans (“Caliber”) and JP Morgan Chase Bank N.A. (“Chase”) both filed motions to dismiss Plaintiff Donald Lewis Quimby’s claims. [See Filing No. 19; Filing No. 25.] The Court referred the motions to dismiss to the Magistrate Judge, who issued a Report and Recommendation on April 22, 2015. [Filing No. 52.] Both Mr. Quimby and Chase filed Objections to limited parts of the Report and Recommendation, [see Filing No. 53; Filing No. 54], and the Court has now considered both the Magistrate Judge’s Report and Recommendation and the Objections.
A. Events Leading Up to the Lawsuit
Mr. Quimby alleges that he purchased a property in Beech Grove, Indiana in 1993 (the “Property”), and took out a mortgage that was, at one point, serviced by Washington Mutual Home Loans (“Washington Mutual”). [Filing No. 1 at 2-3.] Mr. Quimby alleges that in February 2008, he sent two checks to Washington Mutual to cover the mortgage for March on the Property (the “March 2008 Payment”), and also a mortgage on a neighboring property which he had purchased in 1983. Mr. Quimby alleges that Washington Mutual erroneously presented his March 2008 Payment to the wrong account – an account not owned by him – and the check was returned because the account was closed. [See Filing No. 1 at 4-6.] The check for the mortgage for the neighboring property was correctly processed. [Filing No. 1 at 5.]
This erroneous presentment of the March 2008 Payment triggered a series of events spanning several years. Specifically, Mr. Quimby alleges that:
The mortgage on the Property was marked past due, and he began incurring late fees;
He made various telephone calls to Washington Mutual and to his bank, Financial Center Federal Credit Union (“FCFCU”), to try to resolve the dispute;
Washington Mutual sent Mr. Quimby a “Notice of Collection Activity”;
Washington Mutual never processed the March 2008 Payment, and Mr. Quimby refused to send another check because he was concerned it would result in a double payment;
Washington Mutual engaged in various debt collection attempts;
Chase acquired Washington Mutual’s assets in 2008, and began attempting to collect the late mortgage payment from Mr. Quimby in early 2009;
Mr. Quimby continued to incur late fees related to the March 2008 Payment;
In 2011, the mortgage on the Property was listed as an adverse account on Mr. Quimby’s credit report, due to the March 2008 Payment;
In 2013, Caliber began servicing the mortgage on the Property, and notified Mr. Quimby that if he did not bring his account current, it would continue collection efforts and initiate foreclosure proceedings;
Mr. Quimby corresponded with Caliber regarding the March 2008 Payment and explained why his account appeared to be delinquent;
In late 2013, Caliber’s representatives entered the Property, replaced the locks, and placed stickers on the windows, and continued to enter the Property several times thereafter;
Various issues arose with Mr. Quimby’s payments to Caliber, including Caliber returning payments because they were insufficient to cure the default; · In 2014, Caliber ...