Bank of America v. Nancy Enright

MEMORANDUM

Plaintiffs Nancy and Lee Enright appeal from the district court’s order granting a motion to dismiss for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6) by defendants Bank of America, N.A. (Bank of America) and Merrill Lynch Pierce Fenner & Smith, Inc. (Merrill Lynch). We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

The present litigation began when Bank of America filed a complaint seeking a deficiency judgment against the Enrights in Idaho state court in November 2011. The Enrights removed the case to federal court. After obtaining leave to amend, they filed an amended counterclaim against Bank of America and a claim adding Merrill Lynch, a defendant as a successor-by-merger to Banc of America Investment Services, Inc. Bank of America and Merrill Lynch filed a joint motion to dismiss for failure to state a claim, which the district court granted with prejudice. The parties later stipulated to an entry of judgment in favor of Bank of America on the deficiency claim. The Enrights appealed, challenging the district court’s dismissal with prejudice.

We review a district court’s grant of a motion to dismiss de novo. Cervantes v.…