# Smith v. US Bank National Association Mastr Asset Securities Trust 2006-WMC2

> District Court, E.D. New York · July 11, 2022

URL: https://www.frixlaw.com/law-library/cases/10308153

## Case

- **Court:** District Court, E.D. New York
- **Decided:** July 11, 2022
- **Opinion:** 100trialcourt
- **Cited by:** 0 later opinions in the Frix Law Library

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## Opinion text

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
-------------------------------------------------------x
STEPHEN SMITH,

Plaintiff,
MEMORANDUM & ORDER
- against - 22-CV-3426 (PKC) (LB)

US BANK NATIONAL ASSOCIATION
MASTR ASSET, SECURITIES TRUST 2006-
WMC2, ELPINIKI M. BECHASKA, and
CREDIT SUISSE FINANCIAL
CORPORATION,

Defendants.
-------------------------------------------------------x
PAMELA K. CHEN, United States District Judge:
On June 8, 2022, pro se Plaintiff Stephen Smith filed this action against U.S. Bank National
Association, Elpiniki M. Bechaska, an attorney, and Credit Suisse Financial Corporation.
(Complaint (“Compl.”), Dkt. 1 at ECF 1.1) Plaintiff seeks damages. (Id. at ECF 10–11.)
Plaintiff’s request to proceed in forma pauperis is granted. (Dkt. 2.) However, for the reasons
explained below, Plaintiff’s Complaint is dismissed. Plaintiff is granted thirty (30) days to file an
amended complaint.
BACKGROUND
Plaintiff alleges that Defendants “lacked standing” to commence a foreclosure proceeding
for a property located at 145-48 224th Street in Rosedale, New York (the “Property”). (Compl.,
Dkt. 1, at ECF 1, 5–6.) He alleges that “[t]his is not about the ‘. . . foreclosure case itself or the

1 Citations to “ECF” refer to the pagination generated by the Court’s CM/ECF docketing
system and not the document’s internal pagination.
judgment . . .’ but the status and standing of the defendant’s ability to commence the proceedings.”
(Id. at ECF 6.)
Plaintiff includes documents related to the assignment of the mortgage for the property at
issue (id. at ECF 15–18), as well as for another property located at 774 Herkimer Street in
Brooklyn, New York (id. at ECF 12–14).2 Plaintiff does not include documents related to any

foreclosure or provide any information regarding the foreclosure. Plaintiff seeks, inter alia,
damages, “discharge of mortgage,” and “to discharge the loan from plaintiff’s credit report.” (Id.
at ECF 10.)
STANDARD OF REVIEW
Under 28 U.S.C. § 1915(e)(2)(B), a district court must dismiss an IFP action if the
complaint “is frivolous or malicious; fails to state a claim on which relief may be granted; or seeks
monetary relief against a defendant who is immune from such relief.” 28 U.S.C. § 1915(e)(2)(B).
To avoid dismissal, “a complaint must contain sufficient factual matter, accepted as true, to ‘state
a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting
Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). In addressing the sufficiency of a

complaint, a court “accept[s] as true all factual allegations and draw[s] from them all reasonable
inferences; but [it is] not required to credit conclusory allegations or legal conclusions couched as
factual allegations.” Hamilton v. Westchester County, 3 F.4th 86, 90–91 (2d Cir. 2021). Courts
“liberally construe pleadings and briefs submitted by pro se litigants, reading such submissions to
raise the strongest arguments they suggest.” McLeod v. Jewish Guild for the Blind, 864 F.3d 154,

2 It is not clear what relevance, if any, the documents related to the 774 Herkimer Street
property have to do with this action.
156 (2d Cir. 2017). In addition, “[i]f the court determines at any time that it lacks subject-matter
jurisdiction, the court must dismiss the action.” Fed. R. Civ. P. 12(h)(3).
DISCUSSION
I. Federal Court Jurisdiction
Federal courts are courts of limited jurisdiction and must independently verify the existence

of subject matter jurisdiction before proceeding to the merits. Exxon Mobil Corp. v. Allapattah
Servs., Inc., 545 U.S. 546 (2005); Doe v. United States, 833 F.3d 192, 196 (2d Cir. 2016). Congress
has granted district courts two types of subject matter jurisdiction: (1) “federal question
jurisdiction,” under 28 U.S.C. § 1331, over “cases in which there is a federal question,” and
(2) “diversity jurisdiction,” under 28 U.S.C. § 1332, over “certain cases between citizens of
different states, so long as the requirements of complete diversity and amount in controversy are
met.” Purdue Pharma L.P. v. Kentucky, 704 F.3d 208, 213 (2d Cir. 2013). The plaintiff bears the
burden of establishing either type of subject matter jurisdiction. Makarova v. United States, 201
F.3d 110, 113 (2d Cir. 2000). “[S]ubject-matter jurisdiction, because it involves the court’s power
to hear a case, can never be forfeited or waived.” United States v. Cotton, 535 U.S. 625, 630

(2002). “[W]hen a federal court concludes that it lacks subject matter jurisdiction, the court must
dismiss the complaint in its entirety.” Arbaugh v. Y & H Corp., 546 U.S. 500, 514 (2006).
II. Plaintiff Fails to Sufficiently Allege Federal Question Jurisdiction
Federal question jurisdiction exists where a plaintiff’s cause of action is based on a
violation of federal law or where “the well-pleaded complaint necessarily depends on resolution
of a substantial question of federal law.” Bracey v. Bd. of Educ. of City of Bridgeport, 368 F.3d
108, 113 (2d Cir. 2004) (internal quotation marks omitted). Here, Plaintiff’s claim that Defendants
lacked standing to commence foreclosure proceedings, presumably in state court, does not provide
a basis for this Court’s subject matter jurisdiction. This Court cannot make determinations on the
legal viability of a foreclosure or any other proceeding filed in state court. See Vossbrinck v.
Accredited Home Lenders, Inc., 773 F.3d 423, 427 (2d Cir. 2014). Thus, the Court lacks federal
question jurisdiction over his claim that Defendants lacked standing to commence a foreclosure
proceeding in state court. Fed. R. Civ. P. 12(h)(3). To the extent that Plaintiff lists thirteen counts

referencing various federal statutes and regulations (see Dkt. 1 at ECF 1–3), he provides no facts
to support a claim under these federal statutes or regulations. “Simply raising a federal issue in a
complaint will not automatically confer federal question jurisdiction.” Perpetual Sec., Inc. v.
Tang, 290 F.3d 132, 137 (2d Cir. 2002). There is no subject matter jurisdiction if “the purported
federal claim is clearly ‘immaterial and made solely for the purpose of obtaining jurisdiction’ or
is ‘wholly insubstantial and frivolous.’” Southern New England Tel. Co. v. Glob. NAPs Inc., 624
F.3d 123, 132 (2d Cir. 2010).
III. Plaintiff Fails to Sufficiently Allege Diversity Jurisdiction
Similarly, Plaintiff fails to provide a basis for diversity jurisdiction over this matter under
28 U.S.C. § 1332. For instance, he fails to allege his citizenship and the citizenship of each

Defendant named, he fails to set forth the amount in controversy, and he fails to allege the state
law at issue. Thus, the Court also lacks diversity jurisdiction over this matter. Fed. R. Civ. P.
12(h)(3).
IV. This Court Has No Jurisdiction Over Claims Challenging State Court Judgments
Although Plaintiff claims that he is not “arguing the issues on the foreclosure” (Compl.,
Dkt. 1, at ECF 9), the Court nonetheless advises him that pursuant to the Rooker-Feldman doctrine,
lower federal courts lack subject matter jurisdiction over claims that effectively challenge state
court judgments. See District of Columbia Court of Appeals v. Feldman, 460 U.S. 462, 486–87
(1983); Rooker v. Fidelity Trust Co., 263 U.S. 413, 416 (1923). The doctrine applies when (1) the
federal court plaintiff has lost in state court; (2) the plaintiff complains of injuries caused by a state
court judgment; (3) the plaintiff invites the federal court to review and reject that judgment; and
(4) the state court judgment was rendered prior to the commencement of proceedings in the district
court. Hoblock v. Albany County Bd. of Elections, 422 F.3d 77, 83 (2d Cir. 2005); see also Exxon

Mobil Corp. v. Saudi Basic Indus., 544 U.S. 280, 284 (2005). Thus, to the extent Plaintiff is
seeking to challenge a state court judgment of foreclosure, this Court would lack jurisdiction. See
Vossbrinck, 773 F.3d at 426 (state foreclosure action and judgment barred from district court
review by Rooker-Feldman doctrine); Swiatkowski v. New York, 160 F. App’x 30, 32 (2d Cir.
2005) (same); Desir v. Florida Cap. Bank, N.A., 377 F. Supp. 3d 168, 172 (E.D.N.Y. 2019)
(“[C]ourts in this circuit routinely dismiss challenges to state court foreclosure judgments under
Rooker-Feldman.”).
CONCLUSION
For the reasons explained above, Plaintiff’s Complaint is dismissed without prejudice for
lack of subject matter jurisdiction. Fed. R. Civ. P. 12(h)(3). In light of Plaintiff’s pro se status,
the Court grants him leave to file an amended complaint within thirty (30) days of this Order. If

Plaintiff elects to file an amended complaint, it must be captioned “Amended Complaint” and bear
the same docket number as this Memorandum and Order, No. 22-CV-3426 (PKC) (LB). The
amended complaint will replace the original complaint and must therefore stand on its own without
reference to the original complaint. In the amended complaint, Plaintiff must set forth facts to
show that the Court has subject matter jurisdiction over his claims. Legal conclusions and
conclusory allegations will not suffice. Plaintiff must provide facts sufficient to allow each named
Defendant “to have a fair understanding of what the plaintiff is complaining about and to know
whether there is a legal basis for recovery.” Harnage v. Lightner, 916 F.3d 138, 141 (2d Cir. 2019)
(quoting Kittay v. Kornstein, 230 F.3d 531, 541 (2d Cir. 2000)). Plaintiff must also provide the
date and location for each relevant event. In addition, should Plaintiff invoke diversity jurisdiction,
he must also set forth the citizenship of each plaintiff and each defendant named in the caption of
the amended complaint, the amount in controversy,3 and the state law at issue.
All further proceedings shall be stayed for thirty (30) days. If Plaintiff does not file an

amended complaint by that deadline or show good cause why he cannot comply, the Court shall
direct the Clerk of Court to enter judgment and close this case. The Court certifies pursuant to 28
U.S.C. § 1915(a)(3) that any appeal from this order would not be taken in good faith and therefore
in forma pauperis status is denied for the purpose of an appeal. Coppedge v. United States, 369
U.S. 438, 444–45 (1962).
SO ORDERED.

/s/ Pamela K. Chen
Pamela K. Chen
United States District Judge
Dated: July 11, 2022
Brooklyn, New York

3 “A party invoking the jurisdiction of the federal court has the burden of proving that it
appears to a ‘reasonable probability’ that the claim is in excess of the statutory jurisdictional
amount.” Chase Manhattan Bank, N.A. v. Am. Nat’l Bank and Trust Co. of Chicago, 93 F.3d 1064,
1070 (2d Cir. 1996) (quoting Tongkook Am., Inc. v. Shipton Sportswear Co., 14 F.3d 781, 784 (2d
Cir. 1994)). The amount in controversy must be non-speculative in order to satisfy the statute.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/10308153. Public record. Not legal advice.