Parsad v. Trott Law, P.C.

          Mona K. Majzoub Judge

          OPINION AND ORDER ADOPTING IN PART REPORT AND RECOMMENDATION [38], GRANTING IN PART TROTT LAW’S MOTION TO DISMISS [15], GRANTING IN PART DAVID TROTT’S MOTION TO DISMISS [16], AND SUSTAINING IN PART PLAINTIFF’S OBJECTIONS [39]

          LAURIE J. MICHELSON UNITED STATES DISTRICT JUDGE

         Plaintiff Alireza Parsad filed this pro se lawsuit against Defendants Trott Law P.C. (Trott Law) and David A. Trott for violations of Michigan law in connection with the 2009 foreclosure of a home he bought for his parents in Kentwood, Michigan. (ECF No. 1.) The case was referred to Magistrate Judge Mona K. Majzoub for all pretrial matters. See 28 U.S.C. § 636(b)(1). She issued a Report and Recommendation to grant Trott Law and David Trott’s motions to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted (ECF No. 38) and to dismiss the matter in its entirety. Parsad makes ten objections to the Report & Recommendation. (ECF No. 39).

         While the Court appreciates the Magistrate Judge’s thorough consideration of the issues presented in the motions and agrees with most of the analysis, the Court respectfully disagrees with one aspect of the recommended disposition. So the Court will adopt in part the recommendation of the Magistrate Judge, grant Trott Law’s motion to dismiss on Counts I, II, V, VI, VII, VIII, IX, X, and XI, grant David Trott’s motion to dismiss on Count I, and sustain Parsad’s objections as to Count III for the reasons stated below.

         I.

         The claims asserted by Parsad in his complaint relate to the 2009 foreclosure of a home he bought for his parents in Kentwood, Michigan, after he stopped making mortgage payments to his mortgage holder, Bank of America. (ECF No. 1, PageID.2.) On September 14, 2009, Trott Law sent two letters to Parsad advising him that his mortgage had been referred for foreclosure and that the debt would be assumed valid unless he disputed its validity within thirty days. (ECF No. 1, PageID.4.) On September 30, 2009, Trott Law published in the Grand Rapids Legal News a notice pursuant to Michigan Compiled Laws § 600.3205 stating that Parsad had the right to request a meeting with his mortgage holder, which would delay foreclosure proceedings. (ECF No. 1, PageID.66.) On December 23, 2009, the deed to the home was conveyed to BAC Home Loans Servicing, L.P. (BAC) through a sheriff’s sale. (ECF No. 1, PageID.44.) In January 2010, the locks to the house were changed. (ECF No.1, Page ID.48.) In March 2011, Parsad communicated to Trott Law that he had several causes of action against its client, Bank of America. (ECF No. 1, PageID.58.) Mirela Albu, an attorney at Trott Law, wrote to Parsad in April 2011 that BAC had deeded its interest in the home to Fannie Mae. (ECF No. 1, PageID.63–64.) Parsad responded, threatening to file suit soon “against any party whom I reasonably believe has done me harm.” (ECF No. 1, PageID.64.) It appears that Parsad did not file any suit until he learned of a class action against Trott Law seven years later. (ECF No. 1, PageID.11.) Parsad opted out of the proposed class settlement on August 28, 2018 and filed this action on September 13, 2018. (ECF No. 1, PageID.71.)

         Parsad filed this complaint against Defendants Trott Law and David Trott, the owner and President of Trott Law. (ECF No. 1, PageID.1.) On October 11, 2018, Trott Law and David Trott each filed motions to dismiss. (ECF No.15; ECF No. 16.) In November 2018, Parsad stipulated to dismiss Count IV against both parties and Counts II, V, VI, VII, VIII, IX, X, and XI against David Trott. (ECF No. 17; ECF No. 22.) Magistrate Judge Majzoub addressed the remaining counts against each party in her Report and Recommendation, recommending dismissal of all counts. (ECF No.38.)

         II.

         This Court performs a de novo review of those portions of the Magistrate Judge’s Report and Recommendation to which Parsad has objected. See 28 U.S.C. § 636(b); United States v. Curtis, 237 F.3d 598, 603 (6th Cir. 2001). The Court need not and does not perform a de novo review of the report’s unobjected-to findings. Thomas v. Arn, 474 U.S. 140, 150 (1985); Garrison v. Equifax Info. Servs., LLC, No. 10-13990, 2012 WL 1278044, at *8 (E.D. Mich. Apr. 16, 2012).

         In deciding a motion to dismiss under Federal Rule of Procedure 12(b)(6), the Court “construes the complaint in the light most favorable to the plaintiff, accepts the plaintiff’s factual allegations as true, and determines whether the complaint ‘contain[s] sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.’” Heinrich v. Waiting Angels Adoption Servs., Inc., 668 F.3d 393, 403 (6th Cir. 2012) (alteration in original) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). A facially plausible claim to relief means “the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678 (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 556 (2007)). The plausibility standard “asks for more than a sheer possibility that a defendant has acted unlawfully” but is not akin to a probability requirement. Id. Finally, “[t]he plausibility of an inference depends on a host of considerations, including common sense and the strength of competing explanations for the defendant’s conduct.” 16630 Southfield Ltd., P'Ship v. Flagstar Bank, F.S.B., 727 F.3d 502, 503 (6th Cir. 2013).

         III.

         The Court first addresses Defendants’ statue-of-limitations arguments, then turns to the issue of diversity jurisdiction.

         A.

         Parsad filed suit in 2018 over events that occurred in 2009 through 2011. So in their motions to dismiss, Trott Law and David Trott argue that all claims other than Count III are barred by statutes of limitations. (ECF No. 15, PageID.107.) Parsad counters that the statutes of limitations for these counts had been tolled by the filing of a class action against Trott Law, or, in the alternative, under Michigan’s fraudulent concealment statute. (ECF No. 20, PageID.293.) ...