United States District Court, D. South Carolina, Columbia Division
L. Wooten Chief United States District Judge
matter comes before the Court for consideration of South
Carolina Community Bank's Motion to Dismiss the Amended
Complaint. The Court grants the motion to dismiss as to the
federal law claim and declines to exercise supplemental
jurisdiction over the remaining state law claims and
dismisses those claims without prejudice.
Factual and Procedural History 
2006, Matthew Perkins and others formed JTK Investment, LLC,
for the purpose of creating a youth center in Lake City,
South Carolina. Am. Compl. ¶ 9, ECF No. 65. In September
2006, JTK executed a note and mortgage in the Bank's
favor to finance the purchase of real property for the youth
center. Id. ¶¶ 10-11. Perkins personally
guaranteed the note. However, community support and investment
backers for the youth center fell through, and JTK defaulted
on the loan. Id. ¶¶ 12-13. In February
2011, JTK and the Bank agreed to a Deed in Lieu of
Foreclosure and Estoppel Affidavit, which provided broadly
that, in order to avoid foreclosure proceedings, JTK would
deed the property to the Bank in full satisfaction of the
loan, including releasing Perkins from personal liability.
See Id. ¶¶ 14-16.
later attempted to obtain a loan to finance the construction
of his own home, but he was denied a loan from his credit
union based on inaccuracies on his credit report arising out
of the JTK loan. Id. ¶ 17. He eventually
obtained a loan from another institution at a higher interest
rate. Id. ¶ 19.
then contacted the Bank to correct his credit report, which
it did. Id. ¶ 20. However, the Bank later
returned the debt to his credit report, which he discovered
when he was denied a car loan. Id. ¶ 21. He
called the Bank numerous times to find out what needed to be
done to fix his credit report, but he never received an
answer. Id. ¶ 22.
has been denied credit several times since entering into the
deed in lieu and notifying the Bank of the errors on his
credit report, and his mortgage company recently tripled his
escrow payments from $200 to $600 as a result of his
inaccurate credit report. Id. ¶¶ 23-24.
August 2014, Perkins brought this suit against the Bank,
asserting a federal claim for violations of the Fair Credit
Reporting Act (FCRA), 15 U.S.C. § 1681, et
seq.; and South Carolina state law claims for breach of
contract, breach of contract accompanied by a fraudulent act,
and unfair trade practices. ECF No. 65. The Bank filed a
motion to dismiss pursuant to Rule 12(b)(6), ECF No. 67,
Perkins filed a response in opposition, ECF No. 70, and the
Bank filed a reply, ECF No. 71.
matter is now ripe for decision.
Standard of Review
12(b)(6) motion should be granted “if, after accepting
all well-pleaded allegations in the plaintiffs complaint as
true and drawing all reasonable factual inferences from those
facts in the plaintiffs favor, it appears certain that the
plaintiff cannot prove any set of facts in support of his
claim entitling him to relief.” Edwards, 178
F.3d at 244. “[T]he facts alleged ‘must be enough
to raise a right to relief above the speculative level'
and must provide ‘enough facts to state a claim to
relief that is plausible on its face.'”
Robinson v. Am. Honda Motor Co., 551 F.3d 218, 222
(4th Cir. 2009) (quoting Bell Atl. Corp. v. Twombly,
550 U.S. 544, 555, 570 (2007)).