U.S. Bank Nat'l Ass'n v. Collins-Fuller T., No. 15-2415 (7th Cir. 2016)
Annotate this CaseIn 2012, U.S. Bank, which has its main office in Ohio, filed a diversity suit asking for a foreclosure judgment on the mortgage of a residential property owned by the Fullers, citizens of Illinois, and named, as a defendant KeyBank, which held a junior mortgage on the property. After KeyBank was discovered also to be a citizen of Ohio, the district court granted U.S. Bank’s motion for voluntary dismissal. The court also dismissed claims that the Fullers had asserted against Litton Loan Servicing, a nonparty, because it had not been served with the third‐party complaint. The Seventh Circuit affirmed. Dismissal eliminated the prejudicial impact and inefficiency of forcing U.S. Bank to litigate its dispute over the same property in both federal and state court in order to obtain an adequate judgment. Whether Litton had actual notice of the claims against it is only one factor the district court may consider when deciding whether to extend the time for service. The court was free to determine, as it did, that the Fullers’ failure over two years to pursue their claims against Litton ruled out an extension.
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