TBA Law Blog

TBA Law Blog

Supreme Court Finds No Cause of Action for 'Wrongful Foreclosure' Claim

Posted by: Azya Thornton on Nov 15, 2024

The Tennessee Supreme Court has issued an opinion in Case v. Wilmington, involving a man who claimed he experienced “wrongful foreclosure” of his property. The court held that state law does not recognize a common law claim of “wrongful foreclosure.” Rather, such claims must be brought as existing breach of contract, tort or statutory causes of action. The plaintiff, Terry Case, filed the underlying action to stop the foreclosure of his property. After the foreclosure was allowed to proceed, Case filed an amended complaint asserting claims for “wrongful foreclosure,” among others. The trial court dismissed the claims. The Court of Appeals reversed on the “wrongful foreclosure” claim but upheld dismissal of the remaining claims. The Supreme Court reversed the appeals court and sent the case back to the trial court to enter an order of dismissal. To read more about the decision visit the Administrative Office of the Court's website. Chief Justice Holly Kirby issued a separate concurring opinion.

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