Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_10-cv-05668/USCOURTS-cand-5_10-cv-05668-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Contract Dispute

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1

 Prior to consolidation, Henning was before District Court

Judge Michael A. Ponsor.

2

 An "ARM" is an adjustable-rate mortgage.

1

UNITED STATES DISTRICT COURT

DISTRICT OF MASSACHUSETTS

BERNARDO BETTINELLI, et al, )

Plaintiffs, )

 )

v. ) C.A. No. 09-11079-MLW

 )

WELLS FARGO HOME )

MORTGAGE, INC., )

Defendant. )

JOSEPH HENNING, )

Consolidated Plaintiff, )

 )

v. ) C.A. No. 09-11053-MLW

 )

WACHOVIA MORTGAGE, FSB, )

Consolidated Defendant. )

MEMORANDUM AND ORDER

WOLF, D.J. July 23, 2010

On March 2, 2010, pursuant to Federal Rule of Civil Procedure

42(a)(2), the court consolidated two cases, Bettinelli, et al v.

Wells Fargo Home Mortgage, Inc. (09-11079-MLW) and Henning, et al

v. Wachovia Mortgage, FSB (09-11053-MLW), and named Bettinelli as

the lead case. See Mar. 2, 2010 Elec. Ord.1 These cases contain

substantially similar allegations concerning Payment Option ARMs2

("POAs") for which Wachovia is allegedly responsible. Compare,

e.g., Bettinelli First Amended Compl. at ¶¶10-18 and ¶¶29-31, with

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 Wachovia and Wells Fargo Home Mortgage, Inc., merged

effective December 31, 2008. Therefore, while there are

currently different named defendants in Henning and Bettinelli,

the parties agree that Wachovia is the proper common defendant.

See, e.g., Bettinelli Proposed Second Amended Compl. at 1

(stating that the action is being brought against "World Savings

Bank, FSB, now known as Wachovia Mortgage, FSB ('Defendant' or

'Wachovia')").

2

Henning Amended Compl. at ¶¶20-28 and ¶¶32-33, 36; see also Ex. 5

to Bettinelli Emergency Motion to Consolidate (listing, among other

things, the sections of the Bettinelli First Amended Complaint

which were, in large part, copied in the Henning Amended

Complaint). Given the "striking similarity" between the class

allegations in Henning and Bettinelli, "the [two] cases [are]

subject to similar dispositive motion practice and class

certification issues." See Gilliam v. Fidelity Management &

Research Co., No. 04-11600, 2005 WL 1288105, at *5 (D. Mass. May 3,

2005) (consolidating five similar class actions). By consolidating

the cases, the court sought to streamline these processes,

conserving party resources and promoting judicial economy.

On May 10, 2010, the court scheduled a hearing for August 6,

2010, to address Wachovia's pending motion to dismiss the

Bettinellis' first amended complaint and to schedule any remaining

events. See May 10, 2010 Notice; May 10, 2010 Elec. Notice.

The Bettinellis have since filed a motion seeking leave to

file a second amended complaint (the "Motion"). Defendant Wachovia

Mortgage, FSB ("Wachovia"),3 filed a Response, asserting that the

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Motion should be denied without prejudice or, in the alternative,

that proceedings should be stayed. The Bettinellis filed a Reply.

The consolidated plaintiff, Joseph Henning, made no filing with

regard to the Motion and has not communicated with the court since

the consolidation order. However, in the Motion and in their Reply

to Wachovia's Response, the Bettinellis state that they attempted

to file a consolidated complaint with Henning, but that Henning's

counsel would not agree to that course of action. Motion at ¶4;

Reply at 1-2.

In an effort to fairly and efficiently adjudicate these

consolidated cases, it is hereby ORDERED that:

1. Pursuant to Rule 15(a)(2), the court is inclined to allow

the Motion for Leave to File a Second Amended Complaint

(Bettinelli, Docket No. 25), but is not doing so now. To assist

the court in making this decision, by August 2, 2010, at 12:00

noon, Bettinelli and Wachovia shall file memoranda further

addressing the implications of the proposed amended complaint for

Wachovia's pending motion to dismiss and any other relevant

considerations.

2. Pursuant to Rule 42(a)(3), the court is inclined to order

that plaintiffs in Bettinelli and Henning file a consolidated

amended complaint. By July 30, 2010, plaintiffs in each action

shall file, jointly if possible, but separately if necessary, a

report stating whether they consent to filing a consolidated

Case 5:10-cv-05668-JF Document 30 Filed 07/23/10 Page 3 of 5
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complaint and stating the reasons why they believe that filing a

consolidated complaint is, or is not, in the best interests of the

parties. If both sets of plaintiffs do not consent to filing a

consolidated complaint, the court will hear argument on this issue

at the August 6, 2010 hearing. 

3. Because the plaintiffs in Henning and Bettinelli seek to

certify nearly identical classes with respect to state law claims,

(compare Henning Amended Compl. at ¶53, with Bettinelli First

Amended Compl. at ¶63; Bettinelli Proposed Second Amended Compl. at

¶108), the court is considering whether it is appropriate, pursuant

to Rules 42(a)(3) and 23(g)(3), to appoint interim class counsel

concerning the putative class of Massachusetts residents, pending

the potential appointment of class counsel pursuant to Rule

23(g)(1)-(2). See Manual for Complex Litigation, Fourth, §21.11 at

246 (Federal Judicial Center 2004) (recognizing appointment of

interim class counsel may be appropriate when "overlapping,

duplicative or competing suits" exist). By August 2, 2010, at

12:00 noon, any attorney or firm interested in serving as interim

class counsel shall file a memorandum and affidavit stating why he

or it should be selected, if the court makes such an appointment.

See Fed. R. Civ. P. 23(g)(1) (listing criteria for appointment of

class counsel); Fed. R. Civ. P. 23(g)(2) ("[I]f more than one

adequate applicant seeks appointment, the court must appoint the

applicant best able to represent the interests of the class").

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4. By August 2, 2010, at 12:00 noon, Wachovia shall file an

updated report on the possibility that these cases will be

transferred to the multidistrict proceeding, In re Wachovia Corp.

"Pick-A-Payment" Mortgage Marketing and Sales Practice Litigation,

MDL No. 2015, which is now pending in the Northern District of

California.

5. As previously ordered, these cases are consolidated for

all purposes, Bettinelli, Case No. 09-cv-11079-MLW, is the lead

case, and the parties shall file all future pleadings in Case No.

09-cv-11079-MLW.

 /s/ Mark L. Wolf 

UNITED STATES DISTRICT JUDGE

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