Source: http://openjurist.org/470/f3d/1240/quinn-iii
Timestamp: 2013-06-20 08:10:15
Document Index: 217802729

Matched Legal Cases: ['§ 16', '§ 16', '§ 16', '§ 16', '§ 18', '§ 16', '§ 1331', '§ 1367']

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470 F3d 1240 Quinn III 470 F.3d 1240
L. Walter QUINN, III; Terry Quinn, Appellants,v.OCWEN FEDERAL BANK FSB; Wilson & Associates, P.L.L.C., Appellees.
No. 06-1982.
Filed: December 8, 2006.
George Jay Bequette, Jr., argued, Little Rock, AR, for appellant.
This court reviews de novo the grant of a motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6) and affirms only if plaintiffs can prove no set of facts entitling them to relief. Botten v. Shorma, 440 F.3d 979, 980 (8th Cir. 2006). This court assumes as true all factual allegations of the complaint. Abels v. Farmers Commodities Corp., 259 F.3d 910, 914 (8th Cir. 2001). "However, the complaint must contain sufficient facts, as opposed to mere conclusions, to satisfy the legal requirements of the claim to avoid dismissal." DuBois v. Ford Motor Credit Co., 276 F.3d 1019, 1022 (8th Cir. 2002). Further, written instruments attached to the complaint become part of it for all purposes. See Fed.R.Civ.P. 10(c). "For that reason, a court ruling on a motion to dismiss under Rule 12(b)(6) may consider material attached to the complaint." Abels, 259 F.3d at 921. Consequently, the factual allegations here are taken from plaintiffs' complaint, including its attachments.
The Quinns claim that they have a contract with Wells Fargo's servicing agent, Ocwen, that constitutes an ACH authorization. The district court ruled that there was no contract under Arkansas law, because there was no mutual assent between Ocwen and the Quinns to an ACH authorization, and because the correspondence and discussions did not produce a new agreement. See Quinn v. Ocwen Fed. Bank, FSB, No. 04-CV-00678-RSW (E.D.Ark. Feb. 2, 2006).
Wilson is the law firm retained by the mortgagee, Wells Fargo, to conduct the statutory foreclosure. There is no privity of contract between the Quinns and Wilson. Under Arkansas Code § 16-22-310 and § 16-114-303, "[e]xcepting actions where there is privity, attorneys enjoy immunity from suit related to professional activities." Fleming v. Cox Law Firm, ___ S.W.3d ___, ___, 363 Ark. 17, 2005 WL 1485216 at *2 (Ark. 2005). Moreover, the privity requirement of Section 16-22-310 may not be bypassed by couching as equitable a claim against an attorney for professional conduct. Jackson v. Ivory, 353 Ark. 847, 120 S.W.3d 587, 596 (2003) (equitable claim of estoppel barred by Ark. Code Ann. § 16-22-310); Great Am. Ins. Co. v. Dover, Dixon Horne, P.L.L. C., 456 F.3d 909, 912 (8th Cir. 2006) (claim of equitable subrogation barred by Ark.Code Ann. § 16-22-310). Additionally, Section 16-22-310 explicitly states that Arkansas' Statutory Foreclosure Act, § 18-50-101 et seq., "shall not expand the liability of the attorney, the entity or partnership employing the attorney, or the firm in which the attorney is a member or partner." Ark. Code Ann. § 16-22-310(c). Because privity of contract does not exist between the Quinns and Wilson, and because the Quinns can prove no set of facts that would entitle them to relief, the district court appropriately dismissed the equitable claim as to Wilson.
This case was removed to the federal district court under federal question jurisdiction. 28 U.S.C. § 1331. The district court possessed supplemental jurisdiction over the state law claims. 28 U.S.C. § 1367. The six claims brought by the Quinns against Ocwen and Wilson derive from a common nucleus of operative fact, and if considered without regard to their federal or state character, are such that they ordinarily would be expected to be adjudicated in one judicial proceeding. United Mine Workers of Am. v. Gibbs, 383 U.S. 715, 725, 86 S.Ct. 1130, 16 L.Ed.2d 218 (1966); S. Council of Indus. Workers v. Ford, 83 F.3d 966, 969 (8th Cir. 1996). Further, jurisdiction is determined at the time of removal, even though subsequent events may remove from the case the facts on which jurisdiction was predicated. Kan. Pub. Employees Ret. Sys. v. Reimer & Koger Assocs., Inc., 77 F.3d 1063, 1067-68 (8th Cir. 1996). Additionally, the state law claims in this case concern well-settled principles of contract, tort, statute and equity. See Birchem v. Knights of Columbus, 116 F.3d 310, 315 (8th Cir. 1997) (affirming summary judgment of state law claims of breach of contract and tort).
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