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IN THE UNITED STATES DISTRICT COURT 

FOR THE WESTERN DISTRICT OF TEXAS 

SAN ANTONIO DIVISION 

MORTGAGE ELECTRONIC § 

REGISTRATION SYSTEMS, INC., § 

Plaintiff, § 

 § CIVIL ACTION NO. 5:20-cv-00733 

v. § 

 § 

ELIZABETH VALLES AND 

CHRIS VALLES. 

§ 

§ 

Defendants. § 

PLAINTIFF’S ORIGINAL COMPLAINT 

Plaintiff Mortgage Electronic Registration Systems, Inc. (“MERS” or “Plaintiff”) hereby 

files its original complaint against Defendants Elizabeth Valles and Chris Valles (collectively, 

“Defendants”).

I. PARTIES 

1. Plaintiff is a corporation that is organized under the laws of the State of Delaware. 

2. Defendant Elizabeth Valles is an individual who may be served with process at 

11327 Luckey Ledge, San Antonio, Texas 78252 (“the Property”). 

3. Defendant, Chris Valles is an individual who also may be served with process at 

11327 Luckey Ledge, San Antonio, Texas 78252. 

II. JURISDICTION 

4. The Court has jurisdiction over the lawsuit under 28 U.S.C. §1332(a)(1) because 

Plaintiff and Defendants are citizens of different states, and the amount in controversy exceeds 

$75,000, excluding interest and costs. 

5. The parties are diverse. Plaintiff is incorporated in Delaware and has its principal 

place of business in Virginia. Therefore, it is a citizen of Delaware and Virginia. Based on the 

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Bexar County Appraisal District records, Defendants are both domiciled in Texas and are, 

therefore, citizens of Texas. 

6. The amount in controversy requirement is met. Plaintiff seeks a declaratory 

judgment that the lien releases at issue are void and the Deed of Trust lien is in full effect.1

 

Therefore, the value of the Deed of Trust lien, i.e., the remaining balance on the loan which the 

Deed of Trust lien secures, establishes the amount in controversy. Upon information and belief, 

approximately $120,056.18 remains due and owing on the loan at issue. 

III. VENUE 

7. Venue is proper in this district under 28 U.S.C. § 1391(b)(3) because the Property 

at issue is situated in this district. 

IV. FACTS 

8. On or about July 2, 2013, Elizabeth Valles executed a promissory note (the 

“Note”) in the amount of $136,632.00. The Note was secured by the Property as reflected in the 

deed of trust (“Deed of Trust”), which Defendants signed on the same day. See Exhibit A: Deed 

of Trust. The Deed of Trust was recorded in the Bexar County, Texas real property records as 

Document Number 2013139502. 

9. The original lender and servicer was Guild Mortgage Company. Ownership and 

servicing of the loan subsequently transferred. Carrington Mortgage Holdings, LLC is the 

current servicer of the loan, and MERS is the current holder of the Deed of Trust lien. 

10. On or about March 30, 2020, two releases of lien were prepared, executed, and 

1 Farkas v. GMAC Mortg., L.L.C., 737 F.3d 338, 341 (5th Cir. 2013) (citing Hunt v. Wash. State Apple Adver. 

Comm’n, 432 U.S. 333, 347 (1977)); McDonald v. Deutsche Bank Nat’l Trust Co., as Trustee, No. 3:11-cv-2691, 

2011 WL 6396628, at *2 (N.D. Tex. Dec. 20, 2011) (quoting Waller v. Prof’l Ins. Corp., 296 F.2d 545, 547-48 (5th 

Cir. 1961)); see also Leininger v. Leininger, 705 F.2d 727, 729 (5th Cir. 1983) (“In actions seeking declaratory or 

injunctive relief, the amount in controversy is measured by the value of the object of the litigation.”). 

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then recorded in the Bexar County, Texas real property records as Document Numbers 

20200066534 and 20200066535, respectively. See Exhibit B: Lien Releases recorded as 

Document Numbers 20200066534 and 20200066535. These releases purportedly released the 

Deed of Trust lien on the Property. However, these releases were prepared, executed, and 

recorded in error and by mistake. Upon information and belief, approximately $120,056.18 

remains due and owing on the loan—the loan has not been paid in full. 

11. Therefore, Plaintiff seeks a rescission of the erroneous releases of lien and a 

declaration that the Deed of Trust lien remains in full force and effect as a first priority lien on 

the Property as of the date it was originally recorded. 

V. CAUSES OF ACTION – RESCISSION & DECLARATORY JUDGMENT 

12. Plaintiff incorporates by reference all preceding paragraphs as if fully set forth 

herein. 

13. Plaintiff seeks rescission of the releases of lien and a declaratory judgment under 

Federal Rule of Civil Procedure 57 and 28 U.S.C. §§ 2201 and 2202. 

14. The releases of lien were prepared, executed, and recorded by mistake and 

Plaintiff is equitably entitled to a rescission of the releases because the loan has not been paid in 

full. Plaintiff requests the Court declare (1) the releases of lien recorded on March 30, 2020 in 

the Bexar County, Texas real property records as Document Numbers 20200066534 and 

20200066535, respectively, were prepared, executed, and recorded in error and by mistake; (2) 

the releases of lien are rescinded and void; and (3) the Deed of Trust lien recorded on July 8, 

2013 in the Bexar County, Texas real property records as Document Number 2013139502 is of 

full force and effect as it was prior to the recording of the erroneous releases of lien because an 

amount remains due and owing on the loan secured by the Deed of Trust. 

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VI. PRAYER 

15. For these reasons, Plaintiff requests the Court enter a declaratory judgment in 

Plaintiff’s favor as requested above and grant all further relief to which Plaintiff is justly entitled. 

 Respectfully submitted 

 By: /s/ Valerie Henderson 

Valerie Henderson 

Texas Bar No. 24078655 

Melissa Vest 

Texas Bar No. 24096002 

BAKER, DONELSON, BEARMAN, 

CALDWELL & BERKOWITZ, P.C. 

1301 McKinney Street, Suite 3700 

Houston, Texas 77010 

(713) 650-9700 - Telephone 

(713) 650-9701 - Facsimile 

vhenderson@bakerdonelson.com 

mvest@bakerdonelson.com 

 

ATTORNEYS FOR PLAINTIFF 

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