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FORECLOSURE PROBLEM: MISREPRESENTATION, FRAUD, COLLUSION
1. Is a Limited Liability Company a consumer under the Texas Deceptive Trade Practices Act? The answer to this question is currently unknown however, the broad interpretation given to the DTPA by the statute may encompass Limited Liability Companies as business consumers.
2. Is a law firm entitled to the defense of qualified immunity where the firm is sued in its capacity as substitute trustee and not as foreclosure attorneys? A substitute trustee may be sued for violations of the Texas Deceptive Trade Practices Act if it violates the terms of the Deed of Trust so as to make it a real party in interest. It appears that such a firm is not entitled to qualified immunity.
See an unpublished analysis on these issues by the Eastern District of Texas:
http://www.leagle.com/decision/WOODS v. U.S. BANK, N.A., Civil Action No. 4:15-cv-00536.
STEPHANIE WOODS AND SOUTHERN HOME SOLUTIONS, LLC, Plaintiffs, v. U.S. BANK, N.A., AMERICAN HOME 4 RENT PROPERTIES EIGHT, LLC, AND BARRETT, DAFFIN, FRAPPIER, TURNER & ENGEL, LLP, Defendants.
United States District Court, E.D. Texes, Sherman Division.
March 8, 2016.