Case: Flowers Title Companies, LLC v. Bessent

6:25-cv-00127 | U.S. District Court for the Eastern District of Texas

Filed Date: April 14, 2025

Case Ongoing

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Case Summary

In this case, a title company in Texas challenged a federal Financial Crimes Enforcement Network (FinCEN) rule—published during the Biden Administration on August 29, 2024, and set to take effect on December 1, 2025—that requires “certain persons involved in real estate closings and settlements to submit reports and keep records on certain non-financed transfers of residential real property to specified legal entities and trusts on a nationwide basis.” Anti-Money Laundering Regulations for Resi…

[T]ransfers that do not involve an extension of credit to all transferees that is both secured by the transferred residential real property and extended by a financial institution that has both an obligation to maintain an [Anti-Money Laundering] program and an obligation to report suspicious transactions under 31 CFR Chapter X.

89 FR 70258 (31 CFR Chapter X, Section III.C.2.b.).

On April 14, 2025, Flowers Title Companies LLC (doing business as “East Texas Title Companies”) brought this lawsuit in the U.S. District Court for the Eastern District of Texas. Represented by Pacific Legal Foundation, the plaintiff sued the U.S. Department of the Treasury, the Treasury Secretary (Scott Bessent), and the Treasury bureau FinCEN. (To see the Clearinghouse’s collection of litigation and investigations involving the second Trump administration, click here.) Suing under the Administrative Procedure Act (5 U.S.C. §§ 702, 706), the Declaratory Judgment Act (28 U.S.C. §§ 2201 and 2202), and Mandamus (28 U.S.C. § 1361), the plaintiff sought a declaratory judgment holding subsections of the Bank Secrecy Act (BSA) (31 U.S.C. § 5318(a)(2) and (g)) unconstitutional; injunctive relief ordering that FinCEN’s rule be set aside and prohibiting enforcement of the rule; and attorneys’ fees.

According to the complaint, FinCEN’s rule mandated that title companies report detailed personal and financial information for non-financed residential property transfers. The plaintiff argued that the new requirement imposed undue regulatory burdens and forced the company to act as a government surveillance arm, violating constitutional protections. The plaintiff claimed that the rule compelled the collection and disclosure of sensitive client information even in routine intrastate transactions under the presumption that such deals may be “suspicious.” Additionally, the plaintiff claimed that the rule would cost the company time and money. The plaintiff's lawsuit asserted that the federal government lacked the constitutional authority and proper rulemaking foundation to impose such reporting obligations. The plaintiff made three primary constitutional claims: (1) the BSA unlawfully delegated legislative power to the executive branch by giving FinCEN unbounded authority to regulate private financial transactions; (2) the rule exceeded Congress’s authority under the Commerce Clause by regulating purely intrastate real estate transactions, and violated the Tenth Amendment; and (3) the rule constituted an unreasonable search under the Fourth Amendment by compelling warrantless disclosures of client information and business records.

The parties agreed to move ahead to the summary judgment stage and to forgo a government answer, which the court approved on June 17, 2025. On July 15, the plaintiff filed an amended complaint, adding a new cause of action. The new count claimed that the final rule exceeded FinCEN's statutory authority. The amended complaint also added certain factual and legal information regarding the new count. The plaintiff then filed its motion for summary judgment the next day.

On August 15, 2025, FinCEN filed a cross motion for summary judgment. FinCEN argued that the rule: (1) is within its statutory authority because the Bank Secrecy Act defines "suspicious transaction" broadly and thus allows FinCEN to reach broadly; (2) is valid under the Commerce Clause because these transactions have an effect on interstate commerce, and are a part of a broader scheme regulating illicit financial transactions; (3) is valid under the Necessary and Proper Clause because it protects economic markets and national security; (4) is valid under the Fourth Amendment because banks have diminished privacy interests and their customers have no reasonable expectation of privacy in the information they provide to financial institutions, and even if the customers had such an interest, the bank is trying to protect its own corporate records and not information on the behalf of their customers.

The case is ongoing, with the summary judgment hearing scheduled for January 13, 2026.

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Summary Authors

Sylvia Al-Mateen (4/20/2025)

Jeremiah Price (6/27/2025)

Bryan Waugh (12/1/2025)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/69888401/parties/flowers-title-companies-llc-v-bessent/

Judge(s)

Kernodle, Jeremy Daniel (Texas)

Attorney for Plaintiff

Nixon, Molly (Texas)

Peikoff, Amy (Texas)

Attorney for Defendant

Garcia, Adrian (Texas)

Expert/Monitor/Master/Other

Buttaro, Andrew Martin (Texas)

Judge(s)

Kernodle, Jeremy Daniel (Texas)

Attorney for Plaintiff

Nixon, Molly (Texas)

Peikoff, Amy (Texas)

Thompson, Joshua Paul (Texas)

Wake, Luke A. (Texas)

Attorney for Defendant

Garcia, Adrian (Texas)

Other

Buttaro, Andrew Martin (Texas)

Attorney Contact Information via CourtListener

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Documents in the Clearinghouse

	Document
1 6:25-cv-00127	Complaint Flowers Title Companies v. Bessent	April 14, 2025	April 14, 2025 Complaint
11 6:25-cv-00127	Amended Complaint	July 15, 2025	July 15, 2025 Complaint

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Resources

Title	Description		External URL Date / External URL
FinCEN Rule - Anti-Money Laundering Regulations for Residential Real Estate Transfers U.S. Department of the Treasury	Requiring persons involved in real estate closings and settlements to submit reports and keep records on non-financed transfers of residential real property.	Aug. 29, 2024	Aug. 29, 2024 https://www.federalregister.gov/...

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Docket

See docket on RECAP: https://www.courtlistener.com/docket/69888401/flowers-title-companies-llc-v-bessent/

Last updated July 5, 2026, 5:11 a.m.

ECF Number	Description	Date	Link Date / Link
1	COMPLAINT against All Defendants ( Filing fee $ 405 receipt number ATXEDC-10780064.), filed by Flowers Title Companies, LLC. (Attachments: # 1 Exhibit A: Declaration of Celia Flowers, # 2 Exhibit B: Real Estate Report Summary of Data Fields, # 3 Civil Cover Sheet)(Thompson, Joshua) (Entered: 04/14/2025) 1 Exhibit A: Declaration of Celia Flowers View on RECAP 2 Exhibit B: Real Estate Report Summary of Data Fields View on PACER 3 Civil Cover Sheet View on PACER	April 14, 2025	April 14, 2025 Clearinghouse
2	SUMMONS Issued as to Scott Bessent, The Financial Crimes Enforcement Network, U.S. Attorney and U.S. Attorney General (Attachments: # 1 Summons, # 2 Summons, # 3 Summons)(ndc) (Entered: 04/14/2025)	April 14, 2025	April 14, 2025
3	NOTICE of Attorney Appearance - Pro Hac Vice by Luke A. Wake on behalf of Flowers Title Companies, LLC. Filing fee $ 100, receipt number ATXEDC-10784230. (Wake, Luke) (Entered: 04/15/2025)	April 15, 2025	April 15, 2025
4	NOTICE of Attorney Appearance - Pro Hac Vice by Molly Nixon on behalf of Flowers Title Companies, LLC. Filing fee $ 100, receipt number ATXEDC-10784250. (Nixon, Molly) (Entered: 04/15/2025)	April 15, 2025	April 15, 2025
5	NOTICE of Attorney Appearance - Pro Hac Vice by Amy Peikoff on behalf of Flowers Title Companies, LLC. Filing fee $ 100, receipt number ATXEDC-10784278. (Peikoff, Amy) (Entered: 04/15/2025)	April 15, 2025	April 15, 2025
	Add and Terminate Judges	April 17, 2025	April 17, 2025
	District Judge Jeremy D. Kernodle added. (gsm)	April 17, 2025	April 17, 2025
6	Fed. R. Civ. P. 7.1(a)(1) Disclosure Statement filed by Flowers Title Companies, LLC identifying Interested Party Celia Flowers, Interested Party Erica Hallmark for Flowers Title Companies, LLC. (Wake, Luke) (Entered: 04/28/2025)	April 28, 2025	April 28, 2025
7	SUMMONS Returned Executed by Flowers Title Companies, LLC. All Defendants. (Attachments: # 1 Additional Attachment(s) Proof of Service to Attorney General, # 2 Additional Attachment(s) Proof of Service to Scott Bessent, # 3 Additional Attachment(s) Proof of Service to US Attorney, # 4 Additional Attachment(s) Proof of Service to FinCEN)(Wake, Luke) (Entered: 05/22/2025)	May 22, 2025	May 22, 2025
8	UNOPPOSED MOTION to Set Summary Judgment Briefing Schedule and Waive Answer by U.S. Department of Treasury. (Attachments: # 1 Proposed Order)(Garcia, Adrian) (Entered: 06/16/2025) 1 Proposed Order View on PACER	June 16, 2025	June 16, 2025 RECAP
9	ORDER re 8 Motion to Set Summary Judgment Briefing Schedule and Waive Answer. Signed by District Judge Jeremy D. Kernodle on 6/17/2025. (esw) (Entered: 06/17/2025)	June 17, 2025	June 17, 2025 Clearinghouse
10	NOTICE Certified Administrative Record by Scott Bessent, The Financial Crimes Enforcement Network, U.S. Department of Treasury (Attachments: # 1 Additional Attachment(s) CAR - Section A, # 2 Additional Attachment(s) CAR - Section B, # 3 Additional Attachment(s) CAR - Section C (1), # 4 Additional Attachment(s) CAR - Section C (2), # 5 Additional Attachment(s) CAR - Section C (3), # 6 Additional Attachment(s) CAR - Section C (4), # 7 Additional Attachment(s) CAR - Section D (1), # 8 Additional Attachment(s) CAR - Section D (2), # 9 Additional Attachment(s) CAR - Section D (3), # 10 Additional Attachment(s) CAR - Section D (4), # 11 Additional Attachment(s) CAR - Section D (5), # 12 Additional Attachment(s) CAR - Section D (6), # 13 Additional Attachment(s) CAR - Section D (7), # 14 Additional Attachment(s) CAR - Section E, # 15 Additional Attachment(s) CAR - Section F (1), # 16 Additional Attachment(s) CAR - Section F (2), # 17 Additional Attachment(s) CAR - Section G, # 18 Additional Attachment(s) CAR - Section H, # 19 Additional Attachment(s) CAR - Section I (1), # 20 Additional Attachment(s) CAR - Section I (2), # 21 Additional Attachment(s) CAR - Section I (3), # 22 Additional Attachment(s) CAR - Section I (4), # 23 Additional Attachment(s) CAR - Section J)(Garcia, Adrian) (Entered: 07/10/2025)	July 10, 2025	July 10, 2025
11	AMENDED COMPLAINT against All Defendants, filed by Flowers Title Companies, LLC. (Attachments: # 1 Exhibit A: Declaration of Celia Flowers, # 2 Exhibit B: Real Estate Report Summary of Data Fields)(Wake, Luke) (Entered: 07/15/2025)	July 15, 2025	July 15, 2025 Clearinghouse
12	MOTION for Summary Judgment by Flowers Title Companies, LLC. (Attachments: # 1 Exhibit A: Supplemental Declaration of Celia C. Flowers, # 2 Proposed Order)(Wake, Luke) (Entered: 07/16/2025)	July 16, 2025	July 16, 2025 RECAP
13	UNOPPOSED MOTION for Leave to File Excess Pages by Scott Bessent, The Financial Crimes Enforcement Network, U.S. Department of Treasury. (Attachments: # 1 Proposed Order)(Garcia, Adrian) (Entered: 08/15/2025)	Aug. 15, 2025	Aug. 15, 2025
14	RESPONSE re 12 MOTION for Summary Judgment and Cross-Motion for Summary Judgment filed by Scott Bessent, The Financial Crimes Enforcement Network, U.S. Department of Treasury. (Attachments: # 1 Proposed Order)(Garcia, Adrian) (Entered: 08/15/2025)	Aug. 15, 2025	Aug. 15, 2025
15	UNOPPOSED MOTION for Leave to File Excess Pages by Flowers Title Companies, LLC. (Attachments: # 1 Proposed Order Granting Plaintiff's Unopposed Motion for Leave to Exceed Page Limitation)(Wake, Luke) (Entered: 08/25/2025)	Aug. 25, 2025	Aug. 25, 2025
16	ORDER granting 13 Defendants' Motion for Leave to File Excess Pages; granting 15 Plaintiff's Motion for Leave to File Excess Pages. Signed by District Judge Jeremy D. Kernodle on 8/26/2025. (esw) (Entered: 08/26/2025)	Aug. 26, 2025	Aug. 26, 2025
17	REPLY TO RESPONSE re 12 MOTION for Summary Judgment Combined Response and Reply to Summary Judgment Motion filed by Flowers Title Companies, LLC. (Wake, Luke) Modified on 9/3/2025 (gsm). (Entered: 08/29/2025)	Aug. 29, 2025	Aug. 29, 2025
18	REPLY to Response re 12 MOTION for Summary Judgment filed by Scott Bessent, The Financial Crimes Enforcement Network, U.S. Department of Treasury. (Garcia, Adrian) (Entered: 09/12/2025)	Sept. 12, 2025	Sept. 12, 2025
19	UNOPPOSED MOTION for Leave to File to File Amicus Curiae Brief by Puerto Rico Privacy Association. (Attachments: # 1 Proposed Order)(Buttaro, Andrew) (Entered: 09/18/2025)	Sept. 18, 2025	Sept. 18, 2025
20	PROPOSED BRIEF filed by Puerto Rico Privacy Association. (Buttaro, Andrew) (Entered: 09/18/2025)	Sept. 18, 2025	Sept. 18, 2025
21	ORDER granting 19 Motion for Leave to File Amicus Brief. Signed by District Judge Jeremy D. Kernodle on 9/22/2025. (esw) (Entered: 09/22/2025)	Sept. 22, 2025	Sept. 22, 2025
22	ORDER Staying Case (General Order 25-06). Signed by Chief District Judge Amos L Mazzant on 10/8/25. (jbe) (Entered: 10/09/2025)	Oct. 8, 2025	Oct. 8, 2025
23	ORDER Setting Hearing re 12 Plaintiff's MOTION for Summary Judgment, 14 Defendants' Cross-Motion for Summary Judgment. Motion Hearing set for 12/17/2025 at 10:00 AM in Ctrm 101 (Tyler) before District Judge Jeremy D. Kernodle. Signed by District Judge Jeremy D. Kernodle on 11/14/2025. (esw) (Entered: 11/14/2025)	Nov. 14, 2025	Nov. 14, 2025
24	JOINT NOTICE by Scott Bessent, The Financial Crimes Enforcement Network, U.S. Department of Treasury (Garcia, Adrian) (Entered: 11/17/2025)	Nov. 17, 2025	Nov. 17, 2025
25	UNOPPOSED MOTION to Continue Hearing on Motions for Summary Judgment by All Defendants. (Attachments: # 1 Proposed Order)(Garcia, Adrian) (Entered: 11/17/2025)	Nov. 17, 2025	Nov. 17, 2025
26	ORDER granting 25 UNOPPOSED MOTION to Continue Hearing on Motions for Summary Judgment filed by Scott Bessent, U.S. Department of Treasury, The Financial Crimes Enforcement Network. Motion Hearing reset for 1/13/2026 10:00 AM in Ctrm 101 (Tyler) before District Judge Jeremy D. Kernodle. Signed by District Judge Jeremy D. Kernodle on 11/18/2025. (esw) (Entered: 11/18/2025)	Nov. 18, 2025	Nov. 18, 2025
	NOTICE: Persons interested in listening to the 1/13/2026 10:00 AM hearing re: 12 Plaintiff's Motion for Summary Judgment and 14 Defendants' Cross-Motion for Summary Judgment may dial-in to the courtroom telephone conference number as follows: Dial-In Number: (571) 353-2301. Meeting ID: 158301863#. (esw)	Jan. 12, 2026	Jan. 12, 2026
	Notice (Other)	Jan. 12, 2026	Jan. 12, 2026
27	Minute Entry for proceedings held before District Judge Jeremy D. Kernodle: Motion Hearing held on 1/13/2026 from 10:00 - 11:14 re 12 MOTION for Summary Judgment filed by Flowers Title Companies, LLC. Attorney Appearances: Plaintiff - Luke Wake, Molly Nixon; Defense - Adrian Garcia. No exhibits. (Court Reporter - Leslie Kesterson) (esw) (Entered: 01/13/2026)	Jan. 13, 2026	Jan. 13, 2026
28	NOTICE of Supplemental Authority by Scott Bessent, The Financial Crimes Enforcement Network, U.S. Department of Treasury (Attachments: # 1 Exhibit Exhibit A)(Garcia, Adrian) (Entered: 02/25/2026)	Feb. 25, 2026	Feb. 25, 2026
29	Response to Defendants' Notice of Supplemental Authority by Flowers Title Companies, LLC re 28 Notice (Other) (Wake, Luke) Modified on 2/26/2026 (gsm). (Entered: 02/26/2026)	Feb. 26, 2026	Feb. 26, 2026
30	SECOND NOTICE of Supplemental Authority by Scott Bessent, The Financial Crimes Enforcement Network, U.S. Department of Treasury (Attachments: # 1 Exhibit Exhibit A)(Garcia, Adrian) (Entered: 02/27/2026) 1 Exhibit Exhibit A View on PACER	Feb. 27, 2026	Feb. 27, 2026
31	RESPONSE to 30 Notice (Other) filed by Flowers Title Companies, LLC. (Wake, Luke) (Entered: 02/27/2026)	Feb. 27, 2026	Feb. 27, 2026
32	MOTION to Withdraw as Attorney by Flowers Title Companies, LLC. (Attachments: # 1 Proposed Order Granting Plaintiff's Motion to Withdraw Counsel Molly E. Nixon)(Nixon, Molly) (Entered: 03/12/2026) 1 Proposed Order Granting Plaintiff's Motion to Withdraw Counsel Molly E. Nix View on PACER	March 12, 2026	March 12, 2026 RECAP
33	ORDER re 32 MOTION to Withdraw as Attorney filed by Flowers Title Companies, LLC. Attorney Molly Nixon terminated from this case. Signed by District Judge Jeremy D. Kernodle on 3/16/2026. (esw) (Entered: 03/16/2026)	March 16, 2026	March 16, 2026 RECAP
34	MEMORANDUM OPINION AND ORDER granting 12 Plaintiff's Motion for Summary Judgment; denying 14 Defendants' Cross-Motion for Summary Judgment. Signed by District Judge Jeremy D. Kernodle on 3/19/2026. (esw) (Entered: 03/19/2026)	March 19, 2026	March 19, 2026 RECAP
35	FINAL JUDGMENT in favor of Flowers Title Companies, LLC. The Clerk of Court is instructed to close this case. Signed by District Judge Jeremy D. Kernodle on 3/19/2026. (esw) (Entered: 03/19/2026)	March 19, 2026	March 19, 2026 RECAP
36	PROPOSED BILL OF COSTS filed by Flowers Title Companies, LLC. (Wake, Luke) (Entered: 04/02/2026)	April 2, 2026	April 2, 2026 RECAP
37	MOTION for Bill of Costs by Flowers Title Companies, LLC. (Attachments: # 1 Exhibit, # 2 Proposed Order)(Wake, Luke) (Entered: 04/02/2026)	April 2, 2026	April 2, 2026
38	ORDER granting 37 Motion for Bill of Costs. Defendants shall pay Plaintiff costs in the amount of $405. The execution of this order is STAYED until May 18, 2026, or until the resolution of any appeal in this matter. Signed by District Judge Jeremy D. Kernodle on 4/6/2026. (esw) (Entered: 04/06/2026)	April 6, 2026	April 6, 2026 RECAP
39	NOTICE OF APPEAL to the Fifth Circuit as to 35 Judgment, 34 Memorandum & Opinion by Scott Bessent, The Financial Crimes Enforcement Network, U.S. Department of Treasury. T.O. form to appellant electronically at Transcript Order Form or US Mail as appropriate. USCA5 electronically notified. Copy of NOA to be sent by US Mail to appellees not electronically noticed. (Garcia, Adrian) (Entered: 05/11/2026)	May 11, 2026	May 11, 2026 RECAP
40	Paper Transcript Request by Scott Bessent, The Financial Crimes Enforcement Network, U.S. Department of Treasury for 1/13/2026 Motion for Summary Judgment hearing before Judge Jeremy D. Kernodle. (Garcia, Adrian) Forwarded to Leslie Kesterson on 6/1/2026 (ljw). (Entered: 06/01/2026)	June 1, 2026	June 1, 2026
41	NOTICE OF FILING OF OFFICIAL TRANSCRIPT of Dispositive Motion Hearing held on 1/13/26 before Judge Jeremy D. Kernodle. Pursuant to LR CV-5.2/LR CR-49.1, this transcript is available for 90 days by viewing in a TXED courthouse lobby or by purchase from Court Reporter/Transcriber Leslie Kesterson. Thereafter, it will be remotely available via PACER unless redacted or otherwise ordered. The parties have seven (7) days to file a Notice of Intent to Request Redaction to seek redaction of personal identifiers listed in FRCP 5.2/FRCrP 49.1. If redaction is requested, the Redaction Request form is due within 21 days. To seek additional redactions, e-file the motion using the Motion to Redact Transcript event.. Redaction request due 6/29/2026. Release of Transcript Restriction set for 9/8/2026. (ljw) (Entered: 06/08/2026)	June 8, 2026	June 8, 2026
	Transmission of Notice of Appeal and Docket Sheet to USCA	June 15, 2026	June 15, 2026
	USCA Notice of Docketing NOA	June 15, 2026	June 15, 2026
	NOTICE of Docketing Notice of Appeal from USCA re 39 Notice of Appeal,, filed by Scott Bessent, U.S. Department of Treasury, The Financial Crimes Enforcement Network. USCA Case Number 26-40285 (gsm)	June 15, 2026	June 15, 2026
	Transmission of Notice of Appeal and Docket Sheet to US Court of Appeals re 39 Notice of Appeal (gsm)	June 15, 2026	June 15, 2026

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Case Details

State / Territory:

Texas

Case Type(s):

Presidential/Gubernatorial Authority

Special Collection(s):

Trump Administration 2.0: Litigation and Investigations Involving the Government

Miscellaneous

Key Dates

Filing Date: April 14, 2025

Case Ongoing: Yes

Plaintiffs

Plaintiff Description:

Flowers Title Companies LLC (doing business as “East Texas Title Companies”), a title agent based in Texas.

Plaintiff Type(s):

Private Plaintiff

Public Interest Lawyer: Yes

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

Federal

The Financial Crimes Enforcement Network (FinCEN)

U.S. Department of Treasury

Defendant Type(s):

Jurisdiction-wide

Case Details

Causes of Action:

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

Declaratory Judgment Act, 28 U.S.C. § 2201

Mandamus, 28 U.S.C. § 1361

Constitutional Clause(s):

Commerce Power

Federalism (including 10th Amendment)

Non-delegation Doctrine

Unreasonable search and seizure

Other Dockets:

Eastern District of Texas 6:25-cv-00127

Available Documents:

Complaint (any)

Trial Court Docket

Outcome

Prevailing Party: None Yet / None

Relief Sought:

Relief Granted:

Source of Relief:

None yet

Issues

General/Misc.:

Recommended Citation

Case Summary of Flowers Title Companies, LLC v. Bessent, Civil Rights Litig. Clearinghouse, https://clearinghouse.net/case/46399/ (last updated 12/1/2025).