OPINION OF THE COURT
JORDAN, Circuit Judge.
In this federal follow-up to a foreclosure case, Michael Earl Davis is pursuing a variety of claims against an entity that he calls "Wells Fargo U.S. Bank National Association as Trustee for the Structured Asset Investment Loan Trust, 2005-11." It is the purported holder of Davis's mortgage, and we will refer to it as "Wells Fargo" or "the bank."
The District Court also dismissed all of Davis's claims against Assurant, pursuant to Federal Rule of Civil Procedure 12(b)(1), for lack of subject matter jurisdiction. The Court reasoned that Davis lacked standing to bring those claims because he sued the wrong corporate entity, namely Assurant, when he should have sued Assurant's wholly-owned subsidiary, American Security Insurance Company ("ASIC"). That conclusion about standing was in error. Standing is indeed a jurisdictional predicate, but, rightly understood, this case is not about standing at all. An analysis of standing generally focuses on whether the plaintiff is the right party to bring particular claims, not on whether the plaintiff has sued the right party. The latter question goes not to standing and jurisdiction but to the merits of the claims themselves. Therefore, the District Court erred in considering the claims against Assurant under Rule 12(b)(1) rather than Rule 12(b)(6). That difference has important consequences here. In the end, the difference between those rules of procedure dictates that we vacate that portion of the District Court's order dismissing Davis's breach of contract claim against Assurant and remand for further proceedings.
A. Factual Background
Davis is a resident of Philadelphia. On July 29, 2005, he executed a mortgage on a house there ("the Property"), with BNC Mortgage, Inc. ("BNC") as the mortgagee. Two-and-a-half years later, on January 5,
Davis is also a Lieutenant Colonel in the United States Army Reserve, and, on September 15, 2008, the Army placed him on active duty. He promptly provided a copy of his military orders to Wells Fargo, because of the foreclosure action that it had brought against him. Upon receiving the copy of those orders, Wells Fargo filed a motion to vacate the default judgment it had obtained. The judgment was vacated shortly thereafter.
Davis remained on active duty from October 1, 2008, through October 1, 2011. While he was away, in April 2009, Wells Fargo obtained "force-placed" insurance on the Property, i.e., insurance placed by a mortgagee rather than the property owner. The identity of the carrier is in dispute. According to Assurant, the carrier is ASIC, a wholly-owned subsidiary of Assurant. Davis has alleged that Assurant is the entity actually responsible for the insurance coverage. Davis's amended complaint also alleges that Wells Fargo and Assurant conspired to extract excessive premiums from him through the force-placed insurance, in a scheme that paid Wells Fargo kickbacks in exchange for the bank making Assurant the exclusive provider of force-placed insurance for bank-related properties.
Less than two weeks after Davis returned from active duty, on October 12, 2011, MERS, as nominee for BNC, again purported to assign Davis's mortgage on the Property to Wells Fargo. Soon thereafter, Wells Fargo inspected the Property and "discovered a roof leak in the master bedroom that was also damaging the ceiling, wall and flooring" (S5 ¶ 19), and the following day filed an insurance claim. An adjuster examined the property and filed a report estimating that repairs would cost $817. The amended complaint alleges that, in late November, 2011, "Wells Fargo and Assurant Insurance Company fraudulently negotiated a $317 settlement of the roof leak damage claim that did not address the roof." (S5 ¶ 22.) Exhibits to the amended complaint indicate that the $317 payment is the amount of the adjuster's damage assessment, after a $500 deductible. Wells Fargo kept the money. Despite the insurance claim it made, the bank did not fix the leak, and the Property continued to deteriorate. All of this occurred without Davis's knowledge.
Nearly a year later, Davis received a notice from the City of Philadelphia, saying that the Property had been designated unsafe due to a partially collapsed wall. The notice directed Davis to make all necessary repairs or take down the wall within
B. Procedural Background
Earlier that same month, on October 18, 2012, Davis brought his first lawsuit against Wells Fargo in the District Court. Davis v. U.S. Bank Nat'l Ass'n, No. 2:12-cv-05943-TJS (the "2012 action"). He filed an amended, two-count complaint on December 7, 2012, asserting claims against Wells Fargo for trespass and violation of the Servicemembers Civil Relief Act, 50 U.S.C. §§ 3901, et seq. ("SCRA").
Instead, he waited nearly two years and then commenced this second action in the District Court on December 11, 2014. In his amended complaint in the present case, he makes claims against Wells Fargo for trespass (Count I), breach of contract (Count II), negligence (Count IV), fraud (Count VI), breach of the implied covenant of good faith and fair dealing (Count X), and violation of the anti-tying provision of the Bank Holding Company Act, 12 U.S.C. §§ 1972, et seq. (Count XI). The amended complaint also asserts claims against Assurant for breach of contract (Count III), negligence (Count V), fraud (Count VI), and bad faith (Count VII). Finally, the amended complaint requests that the mortgage assignments to Wells Fargo be set aside as fraudulent (Count IX).
Wells Fargo moved to dismiss the claims asserted against it pursuant to Rule 12(b)(6), and Assurant moved to dismiss the claims asserted against it pursuant to Rules 12(b)(1) and 12(b)(6). With its motion, Assurant filed a signed declaration from one of its corporate officers distinguishing Assurant from ASIC as separate corporate entities. The District Court granted both motions in an opinion and order dated June 8, 2015. Davis v. Wells Fargo U.S. Bank Nat'l Ass'n, No. 14-07014, 2015 WL 3555301 (E.D. Pa. June 8, 2015). The Court dismissed all of Davis's claims against Wells Fargo, with the exception of his trespass claim, on the basis of claim preclusion, because it determined that Davis could have brought those claims in his 2012 action. It dismissed the trespass claim as time-barred under Pennsylvania's two-year statute of limitations. The Court also dismissed all of Davis's claims against Assurant under Rule 12(b)(1) for
Davis filed a timely notice of appeal.
Because this case involves the grant of two separate motions to dismiss, we consider each in turn. We start our review with Wells Fargo's motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), and then turn to Assurant's motion under Rule (12)(b)(1). Because we conclude that the District Court's grant of Assurant's motion under Rule 12(b)(1) was error, we will also consider Assurant's alternative argument that the District Court's order should be affirmed on the basis of Rule 12(b)(6) because Davis failed to state a claim.
A. Wells Fargo's Motion to Dismiss Under Rule 12(b)(6)
For purposes of reviewing a motion to dismiss under Rule 12(b)(6), we are "required to accept as true all allegations in the complaint and all reasonable inferences that can be drawn from them after construing them in the light most favorable to the nonmovant." Foglia v. Renal Ventures Mgmt., LLC, 754 F.3d 153, 154 n. 1 (3d Cir. 2014) (quotation marks and citation omitted). However, we disregard legal conclusions and recitals of the elements of a cause of action supported by mere conclusory statements. Santiago v. Warminster Twp., 629 F.3d 121, 128 (3d Cir. 2010) (citation omitted). "In deciding a Rule 12(b)(6) motion, a court must consider only the complaint, exhibits attached to the complaint, matters of public record, as well as undisputedly authentic documents if the complainant's claims are based upon these documents." Mayer v. Belichick, 605 F.3d 223, 230 (3d Cir. 2010).
(1) Claim Preclusion
Davis first argues that the District Court erred in holding that many of his claims against Wells Fargo were barred by the doctrine of claim preclusion, also referred to as res judicata. The Court concluded that claim preclusion required dismissal of those claims — though not his claim of trespass — because they could have been brought at the time of his 2012 action. It reasoned that Davis was aware of all of the facts necessary to assert his "new" claims prior to the filing of his amended complaint in the 2012 action. We agree.
Claim preclusion bars suit when three elements are present: "(1) a final judgment on the merits in a prior suit involving (2) the same parties or their privies and (3) a subsequent suit based on the same cause of action." Lubrizol Corp. v. Exxon Corp., 929 F.2d 960, 963 (3d Cir. 1991). In evaluating whether those elements exist, we do not proceed mechanically, "but focus on the central purpose of the doctrine, to require a plaintiff to present all claims arising out of the same occurrence in a single suit. In so doing, we avoid piecemeal litigation and conserve judicial resources." Blunt v. Lower Merion Sch. Dist., 767 F.3d 247, 277 (3d Cir. 2014) (internal quotation marks and brackets omitted), cert. denied, ___ U.S. ___, 135 S.Ct. 1738, 191 L.Ed.2d 702 (2015). "The purpose of res judicata is to `relieve parties of the cost and vexation of multiple lawsuits,
Davis does not contest that the District Court's dismissal of his claims in the 2012 action was a final judgment on the merits, nor does he dispute that the 2012 action involved a claim against the same party, Wells Fargo. He contends instead that his prior suit "was not based on the same cause of action as the instant case" because he advanced a different legal theory in that lawsuit than he does now. (Opening Br. at 14.)
Under our precedent, there is no single definition of "cause of action" for purposes of claim preclusion. Rather, "[w]e... have explained that we take a broad view of what constitutes the same cause of action and that res judicata generally is thought to turn on the essential similarity of the underlying events giving rise to the various legal claims." Blunt, 767 F.3d at 277 (internal quotation and editorial marks omitted). In short, the focus is on facts rather than legal theories. See Elkadrawy v. Vanguard Grp., 584 F.3d 169, 173 (3d Cir. 2009) (The "analysis does not depend on the specific legal theory invoked...."). Res judicata bars a claim that "arises from the same set of facts as a claim adjudicated on the merits in the earlier litigation." Blunt, 767 F.3d at 277.
Davis filed his first federal complaint on October 18, 2012, bringing claims against Wells Fargo for trespass and a violation of the SCRA. He amended his complaint on December 7, 2012, including the same causes of action.
But the facts are against him. Although Davis says that when he filed his amended complaint in 2012, he was ignorant of what Wells Fargo had done, all of the documentation on which he relies to assert his mortgage fraud claims was available to him well before that. The allegations he made then — unlike the post hoc arguments he makes now — show that Davis was well aware of all of the operative facts prior to December 7, 2012, when he filed his amended complaint. Most importantly, he has consistently acknowledged that he learned of the prior insurance claim on October 28, 2012, when his own separate claim was denied. Thus, as the District Court noted, "[a]ccording to his own statements,
Moreover, although Davis contends that he was "completely unaware" that Wells Fargo was assigned the mortgage on the Property at the time of the 2012 action, the allegedly fraudulent assignments upon which his claims rely were executed more than a year before the filing of his 2012 amended complaint. As he recites in his amended complaint in this action, those assignments were executed in February 2008 and October 2011, respectively. Surely Davis was aware or should have been aware of them, because he was then dealing with Wells Fargo as the purported mortgagee. In addition, as Davis alleges, "[t]he February 8, 2008 fraudulent assignment was recorded in Philadelphia County records on February 20, 2008." (S4.) He identifies no impediment that would have prevented him from discovering the fraud purportedly evident in the plain language of those recorded assignments. Thus, if Davis truly had been unaware of those assignments, his naiveté is not attributable to anyone but himself, and his opportunity to bring claims based on them closed when he failed to assert any such claim in his 2012 action.
In sum, Davis could have asserted his claims against Wells Fargo for breach of contract, negligence, fraud, breach of the
(2) Statute of Limitations
Though claim preclusion does not bar Davis's trespass claim,
In apparent recognition that the statute of limitations had already run when he filed this action, Davis now contends that the limitations period should be equitably tolled because Wells Fargo "actively misled" him into believing that it was the mortgagee, though it "did not ... have the note or a valid mortgage assignment for the property." (Opening Br. at 18-19.) Assuming that were true — as we must — we still can discern no reason why the invalidity of the assignment prevented Davis from filing his trespass claim.
We have held that equitable tolling may be appropriate under three primary,
The 2012 action itself makes the point plainly. Davis said in his amended complaint in that suit that Wells Fargo was a trespasser because it "did not hold a possessory right to the property, it only held a mortgage lien." (S158.) He obviously did not then think the validity of the mortgage assignment affected his possessory interest in the Property, and he was right. We thus cannot hold that Davis was unable to know the basis for his trespass claim during the limitations period when he, in fact, made the trespass claim in his prior, timely-filed suit.
Accordingly, Davis's trespass claim is time-barred, and we will affirm the District Court's dismissal of the claim on that basis.
B. Assurant's Motion to Dismiss Under Rule 12(b)(1)
Assurant moved to dismiss Davis's complaint on the basis that the District Court lacked subject matter jurisdiction. It argued that Davis lacked standing because he had improperly sued Assurant rather than ASIC, its wholly-owned subsidiary. We exercise plenary review over the District Court's dismissal for lack of subject matter jurisdiction. In re Schering Plough Corp. Intron/Temodar Consumer Class Action, 678 F.3d 235, 243 (3d Cir. 2012).
A challenge to subject matter jurisdiction under Rule 12(b)(1) may be either a facial or a factual attack. The former challenges subject matter jurisdiction without disputing the facts alleged in the complaint, and it requires the court to "consider the allegations of the complaint as true." Petruska v. Gannon Univ., 462 F.3d 294, 302 n. 3 (3d Cir. 2006) (quoting Mortensen v. First Fed. Sav. & Loan Ass'n, 549 F.2d 884, 891 (3d Cir. 1977)). The latter, a factual challenge, attacks the factual allegations underlying the complaint's assertion of jurisdiction, either through the filing of an answer or "otherwise present[ing] competing facts." Constitution Party of Pa. v. Aichele, 757 F.3d 347, 358 (3d Cir. 2014). In contrast to a facial challenge, a factual challenge allows "a court [to] weigh and consider evidence outside the pleadings." Id. (internal quotation marks omitted). When a factual challenge is made, "the plaintiff will have the burden of proof that jurisdiction does in fact exist," and the court "is free to weigh the evidence and satisfy itself as to the existence of its power to hear the case." Mortensen, 549 F.2d at 891. "[N]o presumptive truthfulness attaches to [the] plaintiff's allegations...." Id. Although we exercise plenary review over the District Court's legal conclusions, we review the Court's findings of fact, including findings related to jurisdiction, only for clear error. CNA v. United States, 535 F.3d 132, 139 (3d Cir. 2008).
Here, because it submitted a signed declaration disputing Davis's factual allegations, Assurant has mounted a factual challenge to subject matter jurisdiction. See Int'l Ass'n of Machinists & Aerospace Workers v. Nw. Airlines, Inc., 673 F.2d 700, 711 (3d Cir. 1982) ("[Defendant's] motion was supported by a sworn statement of facts. It therefore must be construed as a factual, rather than a facial attack...."). Assurant had one of its corporate officers declare that ASIC has a separate corporate existence from its parent, that Assurant is not involved in ASIC's daily business operations, and that Assurant itself has never contracted or done business with Davis. Given the claimed distinction between Assurant and ASIC, Assurant argued — and the District Court agreed — that Davis lacked standing to claim that Assurant was liable for breach of contract, negligence, fraud, and bad faith dealing.
Standing is a jurisdictional matter. "Absent Article III standing, a federal court does not have subject matter jurisdiction to address a plaintiff's claims, and they must be dismissed." Taliaferro v. Darby Twp. Zoning Bd., 458 F.3d 181, 188 (3d Cir. 2006). The Supreme Court has recognized that "the irreducible constitutional minimum of standing contains three elements," which the party invoking federal jurisdiction must establish. Lujan v. Defenders of Wildlife, 504 U.S. 555, 560, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992). First, the plaintiff must show that he suffered an "injury in fact," meaning a concrete and particularized invasion of a legally protected interest. Id. Second, the plaintiff must demonstrate a "causal connection between the injury and the conduct complained of — the injury has to be fairly traceable to the challenged action of the defendant, and not
Assurant's standing argument focuses on the latter two elements of the standing analysis, traceability and redressability. Assurant contends that its subsidiary, ASIC, is the actual carrier of the insurance and that, given the distinction between Assurant and ASIC, Davis's alleged injury is not fairly traceable to Assurant's conduct. Thus, says Assurant, a judgment against it would do nothing to redress the harm that Davis supposedly suffered at the hands of ASIC. While that argument has some superficial appeal, it is wrong. Assurant's argument is better understood as a well-disguised challenge to the legal merits of Davis's case, not as a challenge to his standing to pursue it.
Taking the argument from its start, Assurant says that ASIC, its wholly-owned subsidiary, should have been the named defendant in Davis's complaint. But that is a matter open to reasonable dispute. Assurant and ASIC are related entities and the extent of their intertwined operations is a matter that has not yet been tested by the adversary process. Even if Assurant were to assert that it had absolutely no relationship with ASIC, however, its argument ought still to be treated as going to the merits of the case. Like all merits arguments, the question of whether a plaintiff has sued the correct defendant should ordinarily be addressed at the pleading stage by affording the plaintiff the protections provided by Rule 12(b)(6).
Assurant acknowledges that parent corporations may be held liable for the actions of their subsidiaries under certain conditions, but it argues that Davis's complaint "does not make a single factual averment that would support a claim for piercing the corporate veil." (Assurant Br. at 15.) It thus uses its declaration to establish a factual predicate (i.e., the distinction between ASIC and Assurant) for a legal argument addressed squarely to the merits of Davis's complaint (i.e., the inability to pierce the corporate veil to hold Assurant liable for ASIC's actions). But, if we accept the factual allegations of the complaint, as we would under Rule 12(b)(6), the distinction between ASIC and Assurant is not established and, in fact, is irrelevant. There is no veil to pierce because Davis says Assurant is the insurance carrier on the policy in question. With the factual foundation for its argument removed, Assurant's position has little persuasive force. Its contention that ASIC is the proper defendant may, in the end, be a strong merits defense against Davis's claims, but it does not mean that Davis does not have standing to bring his claims, and to bring them against Assurant. Cf. Official Comm. of Unsecured Creditors v. R.F. Lafferty & Co., 267 F.3d 340, 346 (3d
The standing requirement is analytically distinct from the merits of the underlying dispute. Standing is meant to serve as "an essential and unchanging part of the case-or-controversy requirement of Article III." Lujan, 504 U.S. at 560, 112 S.Ct. 2130. Here, Davis has alleged that Assurant breached a contract and committed various state-law torts. If for no other reason, a case or controversy exists to determine whether Davis is suing the right insurance company and, even if he should have sued ASIC, whether he may pierce the corporate veil and hold Assurant accountable for the alleged misconduct of ASIC. Davis argues that Assurant may be held responsible; Assurant argues that it may not. That is a merits question.
Assurant's assertions to the contrary prove too much. If accepted, they would allow any litigant whose defense is "you've got the wrong party" to frame that lack-of-responsibility defense not as a merits challenge to be tried or to be considered under Rule 12(b)(6) or the summary judgment provisions of Rule 56 but as a Rule 12(b)(1) standing challenge, thereby empowering the defendant to buttress its legal arguments with factual assertions that contradict those in the complaint. Although standing and merits questions may involve overlapping facts, standing is generally an inquiry about the plaintiff: is this the right person to bring this claim. See Raines v. Byrd, 521 U.S. 811, 818, 117 S.Ct. 2312, 138 L.Ed.2d 849 (1997) ("The standing inquiry focuses on whether the plaintiff is the proper party to bring this suit...."); Flast v. Cohen, 392 U.S. 83, 99, 88 S.Ct. 1942, 20 L.Ed.2d 947 (1968) ("The fundamental aspect of standing is that it focuses on the party seeking to get his complaint before a federal court and not on the issues he wishes to have adjudicated."). It is generally not an inquiry into whether the plaintiff has got the right defendant.
The confusion generated by Assurant is a new iteration of an old problem. We have already held that "a district court must take care not to reach the merits of a case when deciding a Rule 12(b)(1) motion." CNA, 535 F.3d at 144. "Jurisdictional finding of genuinely disputed facts is inappropriate when the jurisdictional issue and substantive issues are so intertwined that the question of jurisdiction is dependent on the resolution of factual issues going to the merits of an action." Sun Valley Gasoline, Inc. v. Ernst Enters., Inc., 711 F.2d 138, 139 (9th Cir. 1983) (internal quotation marks omitted). As we stated in Kulick v. Pocono Downs Racing Association, when a factual challenge to jurisdiction attacks facts at the core of the merits of the underlying cause of action, "the proper procedure for the district court is to find that jurisdiction exists and to deal with the objection as a direct attack on the merits of the plaintiff's case." 816 F.2d 895, 898 n. 5 (3d Cir. 1987) (internal quotation marks omitted).
We have repeatedly cautioned against allowing a Rule 12(b)(1) motion to dismiss for lack of subject matter jurisdiction to be turned into an attack on the merits. E.g., Gould Elecs. Inc. v. United States, 220 F.3d 169, 178 (3d Cir. 2000); Growth Horizons, Inc. v. Delaware Cty., Pa., 983 F.2d 1277, 1280-81 (3d Cir. 1993); Kehr Packages, Inc. v. Fidelcor, Inc., 926 F.2d 1406, 1408-09 (3d Cir. 1991); Kulick, 816 F.2d at 897; Johnsrud v. Carter, 620 F.2d 29, 32-33 (3d Cir. 1980); Mortensen, 549 F.2d at 891. Caution is necessary because the standards governing the two
Rule 12(b)(6) — with its attendant procedural and substantive protections for plaintiffs — is the proper vehicle for the early testing of a plaintiff's claims. Assurant does not contend that Davis is the wrong person to bring his claims. Rather, it argues that he has filed suit against the wrong party, that his claims against Assurant are actually without merit because Assurant has done nothing wrong. That may be true, and, if so, the ordinary course of litigation will root it out. But Assurant may not short-circuit the usual process, flip the burden of persuasion, and permit itself to submit competing facts to support its argument.
Bell v. Hood, 327 U.S. 678, 682, 66 S.Ct. 773, 90 L.Ed. 939 (1946).
In light of its limited protections for plaintiffs, Rule 12(b)(1) must not be expanded beyond its proper purpose.
The District Court erroneously accepted Assurant's standing argument. In doing so, it shifted to Davis the burden of persuasion that properly falls on Assurant on a motion to dismiss under Rule 12(b)(6), and deprived him of the deference due the factual allegations of his complaint. Accordingly, we will vacate the District Court's order insofar as it concluded that it was without subject matter jurisdiction over Davis's claims against Assurant.
C. Assurant's Motion to Dismiss Under Rule 12(b)(6)
Assurant also moved to dismiss pursuant to Rule 12(b)(6), which the District Court did not address given its dismissal of the case under Rule 12(b)(1). Since we may affirm on any basis supported by the record, Guthrie v. Lady Jane Collieries, Inc., 722 F.2d 1141, 1144-45 (3d Cir. 1983), we now consider that 12(b)(6) motion.
We start with Davis's breach of contract claim. To make out that claim, Davis must allege facts giving rise to a reasonable inference that discovery will reveal evidence that "there was a contract, [Assurant] breached it, and [he] suffered damages from the breach." McShea v. City of Philadelphia, 606 Pa. 88,995 A.2d 334, 340 (2010).
We also agree with Assurant's argument that Davis's negligence and fraud claims are time barred under Pennsylvania's applicable two-year statute of limitations. See 42 Pa. Cons. Stat. § 5524(7). With respect to the negligence claim, Davis alleged that Assurant "breached its duty of care to [him] when it failed to investigate, estimate and pay [Davis's] roof leak claim leaving the property unrepaired and exposed to the elements which caused the back wall to deteriorate, collapse and grow toxic black mold that spread throughout the house." (S21.) As previously discussed, Davis knew that Assurant denied his insurance claim regarding the roof leak by (at the latest) October 28, 2012, more than two years before he filed suit in December 2014. The same is true of Davis's fraud claim, which is premised on the purported kickback scheme between Wells Fargo and Assurant and on Assurant's coverage responses to the Property's roof leak. The insurance policy was placed on the property in April 2009, and Assurant denied Davis's insurance claim on October 28, 2012. Thus, by the time Davis filed his complaint in December 2014, his fraud claim was also barred by the two-year statute of limitations. Nothing in the amended complaint or the documents integral to it suggests that the statute of limitations should be tolled for any reason, and Davis — by not filing a reply brief addressed to any of Assurant's 12(b)(6) arguments — has not argued for tolling in this regard.
Accordingly, on remand, Davis's sole surviving claim is his breach of contract claim against Assurant.
For the foregoing reasons, we will affirm the District Court's order in part,
But again, even under the most charitable reading of his amended complaint, the limitations period ended, at the very latest, in September 2014. Either way, the statute of limitations had lapsed by the time Davis filed his complaint in December 2014.
When asked about those facts during oral argument, Wells Fargo did not dispute their veracity, nor did its counsel seem particularly concerned about the brazenly exploitative character of the alleged actions of the bank. In one telling portion of the argument, when asked whether the bank had the right to make an insurance claim, take money for a roof repair, and then pocket that money and not make the repair, all while knowing the result could be further deterioration and structural damage to the Property, counsel said simply, "that is what the mortgage gives them the right to do." See Oral Argument, http://www2. ca3.uscourts.gov/oralargument/audio/15-2658 Davisv.WellsFargo.mp3, at 19:13-19:38 (argued March 2, 2016). If the allegations are true, they raise serious questions about bad faith that we are not now in a position to address. Suffice it to say, however, that although we affirm the dismissal of Davis's claims, we hope the allegations of the amended complaint do not reflect Wells Fargo's actual business practices.