Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_09-cv-01431/USCOURTS-casd-3_09-cv-01431-0/pdf.json

Nature of Suit Code: 220
Nature of Suit: Foreclosure
Cause of Action: 15:1601 Truth in Lending

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09cv1431

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

CARMINDA RAMIREZ, an individual,

Plaintiff,

v.

DEUTSCHE BANK NATIONAL

TRUST COMPANY, AS TRUSTEE

FOR DOWNEY 2005-AR6, et. al.,

Defendants. 

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Civil No. 09cv1431 JAH (WMc)

ORDER GRANTING UNOPPOSED

MOTION FOR LEAVE TO FILE A

FIRST AMENDED COMPLAINT

[Doc. No. 28] and DENYING

DEFENDANTS’ MOTIONS TO

DISMISS AS MOOT

[Doc. Nos. 20, 21]

Pending before the Court is Defendant Deutsche Bank National Trust Company’s

motion to dismiss, Defendants Downey Savings and Loan and FCI Lender Services, Inc.’s

motion to dismiss and Plaintiff’s motion for leave to file a First Amended Complaint.

After a review of the parties’ submissions, the Court GRANTS Plaintiff’s motion for leave

to amend and DENIES the motions to dismiss as moot.

DISCUSSION

Plaintiff moves to amend her complaint pursuant to Federal Rule of Civil Procedure

15. The filing of an amended complaint or counter-claim after a responsive pleading has

been filed may be allowed by leave of court. Fed.R.Civ.P. 15(a). Rule 15(a) provides in

pertinent part:

A party may amend the party’s pleading once as a matter of course at any

time before a responsive pleading is served or, if the pleading is one to which no responsive pleading is permitted and the action has not been placed upon the trial calendar, the party may so amend within 20 days after it is served. Otherwise, a party may amend the party's pleadings only by leave of court

Case 3:09-cv-01431-JAH-WMC Document 32 Filed 09/10/10 Page 1 of 3
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2 09cv1431

or by written consent of the adverse party; and leave shall be freely given when justice so requires.

The Supreme Court has instructed lower courts to heed the language of Rule 15(a) to

grant leave freely when justice requires. Howey v. United States, 481 F.2d 1187, 1190

(9th Cir. 1973). Because Rule 15(a) mandates that leave to amend should be freely given

when justice so requires, the rule is to be interpreted with “extreme liberality.” United

States v. Webb, 655 F.2d 977, 979 (9th Cir. 1981). 

Granting leave to amend rests in the sound discretion of the trial court.

International Ass’n of Machinists & Aerospace Workers v. Republic Airlines, 761 F.2d

1386, 1390 (9th Cir. 1985). This discretion must be guided by the strong federal policy

favoring the disposition of cases on the merits. DCD Programs Ltd. v. Leighton, 833 F.2d

183, 186 (9th Cir. 1987). Because Rule 15(a) favors a liberal policy, the nonmoving party

bears the burden of demonstrating why leave to amend should not be granted. Genetech,

Inc. v. Abbott Laboratories, 127 F.R.D. 529 (N.D. Cal. 1989). 

However, even though leave to amend is generally granted freely, it is not granted

automatically. See Zivkovic v. Southern Cal. Edison Co., 302 F.3d 1080, 1087 (9th Cir.

2002). Four factors are considered when a court determines whether to allow amendment

of a pleading. These are prejudice to the opposing party, undue delay, bad faith, and

futility. See Forsyth v. Humana, 114 F.3d 1467, 1482 (9th Cir. 1997); DCD Programs,

833 F.2d at 186; see also Foman v. Davis, 371 U.S. 178, 182 (1962). 

These factors are not equally weighted; the possibility of delay alone, for instance,

cannot justify denial of leave to amend. See DCD Programs, 833 F.2d at 186; Morongo

Band of Mission Indians v. Rose, 893 F.2d 1074, 1079 (9th Cir. 1990). The single most

important factor is whether prejudice would result to the nonmovant as a consequence of

the amendment. William Inglis & Sons Baking Co. v. ITT Continental Baking Co., 668

F.2d 1014, 1053 (9th Cir. 1981). 

Plaintiff seeks to amend her complaint “in light and in consideration of the pending

Motions to Dismiss.” Motion at 1. She maintains the deficiencies of her complaint noted

by Defendants in their motions are addressed in her proposed First Amended Complaint

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3 09cv1431

(“FAC”). Specifically, she contends the FAC will clarify the liability of all defendants and

set forth sufficient facts to support intentional misrepresentation by Downey Savings and

Baja Realty Services, a proposed additional defendant. She further maintains the FAC will

assert a claim for breach of fiduciary duty against Defendant Baja Realty only, sufficiently

allege claims for violations of the Truth and Lending Act and the Real Estate Procedures

Act as to Downey Savings, and properly allege a claim under California’s Business and

Professions Code § 17200, et. seq., by clarifying the fraud allegedly perpetrated by

Defendant Downey Savings and Baja Realty.

No defendant filed an opposition to the motion. This case is in its infancy and,

therefore the proposed amendment does not appear to prejudice the defendants.

Additionally, there is no evidence the motion was brought in bad faith or will cause undue

delay. As such, the Court finds no valid reason to deny Plaintiff leave to amend.

CONCLUSION AND ORDER

For the reasons stated above, IT IS HEREBY ORDERED:

1. Plaintiff’s motion for leave to file a First Amended Complaint is GRANTED;

2. Plaintiff shall file and serve her First Amended Complaint no later than

October 1, 2010.

3. Defendant Deutsche Bank National Trust Company’s motion to dismiss and

motion to expunge the lis pendens is DENIED as moot.

4. Defendants Downey Savings and Loan and FCI Lender Services, Inc.’s

motion to dismiss is DENIED as moot.

DATED: September 10, 2010

JOHN A. HOUSTON

United States District Judge

Case 3:09-cv-01431-JAH-WMC Document 32 Filed 09/10/10 Page 3 of 3