John O. Threadgill v. Wells Fargo Bank, N.A.

At an earlier time, in 2011, John O. Threadgill brought an action against Wells Fargo Bank, N.A. In doing so, he was acting as the trustee for the owner of real property, upon which mortgagee Wells Fargo intended to foreclose. That case ended in summary judgment against the trustee. When the decision became final following an appeal to this Court and an unsuccessful request for Supreme Court review, Threadgill almost immediately filed this action. For the purpose of the second suit, he admits that the current complaint asserts the same claims and involves the same parties as in the earlier suit. In the second suit, Wells Fargo again moved for summary judgment upon the ground of res judicata. Threadgill acknowledges that res judicata applies to bar his claim. He argues, however, that he is entitled to a judgment declaring that Wells Fargo is estopped from asserting any claim that is based upon the note and deed of trust, because Wells Fargo failed to assert such a claim in the first lawsuit. Threadgill argues that a claim based on the note and deed of trust is a compulsory counterclaim under Tenn. R. Civ. P. 13.01. The trial court disagreed, ruling that Wells Fargo’s “nonjudicial foreclosure is, by definition, nonjudicial and was not required to be raised in the [earlier case] as a counterclaim.” Threadgill appeals. We affirm