Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_11-cv-01819/USCOURTS-azd-2_11-cv-01819-0/pdf.json

Nature of Suit Code: 290
Nature of Suit: Other Real Property Actions
Cause of Action: 28:1441 Petition for Removal- Injunctive/Declaratory Relief

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Kevin Karl Broerman, et al., 

Plaintiffs, 

vs.

California Reconveyance Company, et al,

Defendants. 

)

)

)

)

)

)

)

)

)

)

)

)

No. CV-11-1819-PHX-FJM

ORDER

Before the court is defendants’ motion to dismiss the amended complaint (doc. 19),

plaintiffs’ response and motion to amend (doc. 20), and defendants’ reply (doc. 21). 

We first reject plaintiffs’ suggestion that this motion to dismiss should be converted

to a motion for summary judgment under Rule 12(d), Fed. R. Civ. P., because defendants

referred to public records in their motion to dismiss. In considering a motion to dismiss, we

may take judicial notice of matters of public record outside the pleadings, MGIC Indem.

Corp. v. Weisman, 803 F.2d 500, 504 (9th Cir. 1986), as well as those documents referred

to in the complaint, whose authenticity no party questions. United States v. Corinthian

Colleges, 655 F.3d 984, 999 (9th Cir. 2011).

We also note that plaintiffs’ response to the motion to dismiss was filed 7 days late

without explanation or request for an extension of time. Plaintiffs are admonished that they

must comply with the federal and local rules of civil procedure, notwithstanding their pro se

Case 2:11-cv-01819-FJM Document 22 Filed 03/09/12 Page 1 of 3
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

- 2 -

status. 

On November 23, 2005, plaintiffs borrowed $491,603 from Pulte Mortgage LLC to

purchase real estate located in Anthem, Arizona. A deed of trust secures payment of the

loan. Motion, ex. A. The deed of trust names MERS as beneficiary and as nominee for Pulte.

After the closing, the loan was transferred to the Real Estate Mortgage Investment Conduit

Washington Mutual Mortgage Pass-Through Certificates, and Washington Mutual Bank

(“WaMu”) became the loan servicer. Motion, ex. B. Subsequently, JPMorgan Chase Bank

acquired certain assets and assumed certain liabilities of WaMu from the Federal Deposit

Insurance Corporation acting as receiver, at which time Chase became the loan servicer as

successor in interest to WaMu. 

At an undisclosed time, Chase initiated foreclosure proceedings. On June 14, 2011,

MERS assigned its beneficial interest in the deed of trust to U.S. Bank, and U.S. Bank filed

a Notice of Substitution of Trustee, appointing CRC as the successor trustee (“Notice of

Substitution”). Motion, ex. D. On the same day, defendant California Reconveyance

Company (“CRC”) recorded a Notice of Trustee’s Sale. Thereafter, on August 12, 2011,

CRC recorded a Cancellation of Notice of Sale, which cancelled the sale notice. It appears

that, to date, CRC has not recorded a new Notice of Trustee’s Sale. 

Plaintiffs assert one count in their amended complaint–a claim to quiet title. They

allege that CRC improperly initiated non-judicial foreclosure proceedings because it has not

established that it has “the requisite legal standing to institute foreclosure,” has “failed to

provide evidence or even take the position that it is the holder of all rights under the Note,”

has “failed to demonstrate that it . . . is the party with the true ownership interest in the

Mortgage,” and has not “demonstrated that it has suffered actual or threatened injury as a

consequence of any default.” Amended Complaint ¶¶ 7-10. 

Plaintiffs’ theory that CRC, or the other defendants, must demonstrate that they hold

rights under the Note before initiating foreclosure proceedings has been consistently rejected

by Arizona courts. See, e.g., Hogan v. Washington Mut. Bank, 227 Ariz. 561, ___, 261 P.3d

445, 448 (Ct. App. 2011) (rejecting the “show me the note” theory and holding that

Case 2:11-cv-01819-FJM Document 22 Filed 03/09/12 Page 2 of 3
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

- 3 -

Arizona’s non-judicial foreclosure statute does not require presentation of the original note

before commencing foreclosure proceedings). 

Moreover, to quiet title, a plaintiff must allege that he possesses title to the subject

property, that the defendant claims an interest adverse to his, and that it would be inequitable

to let defendant’s interest stand. It is well established that quiet title is not a remedy available

to a plaintiff until the underlying debt is paid or tendered. Farrell v. West, 57 Ariz. 490, 491,

114 P.2d 910, 911 (1941). Plaintiffs do not allege that they have tendered, or are able to

tender, the outstanding balance on the Loan. Therefore, the remedy of quiet title is not

available, and plaintiffs’ amended complaint fails to state a claim upon which relief can be

granted. 

Plaintiffs request that in the event we find pleading deficiencies that they be allowed

to file an amended complaint. But plaintiffs wholly fail to comply with LRCiv 15.1, which

requires, among other things, that a party seeking to amend a pleading attach a copy of the

proposed amended pleading as an exhibit to the motion. Therefore, the motion to amend is

denied (doc. 20). 

IT IS ORDERED GRANTING defendants’ motion to dismiss (doc. 19). 

IT IS FURTHER ORDERED DENYING plaintiffs’ motion to amend (doc. 20). 

Plaintiffs have already filed an amended complaint, which continues to be deficient.

Nevertheless, we will allow plaintiffs another opportunity to file a motion to amend their

complaint in order to assert a claim upon which relief can be granted. We caution plaintiffs

that any filings with this court must comply with Rule 11(b), Fed. R. Civ. P., or risk being

subject to sanctions. Plaintiffs’ motion to amend the complaint must be filed no later than

14 days after the filing of this order, or this action will be dismissed with prejudice. 

DATED this 8th day of March, 2012.

Case 2:11-cv-01819-FJM Document 22 Filed 03/09/12 Page 3 of 3