Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_10-cv-00528/USCOURTS-caed-1_10-cv-00528-3/pdf.json

Nature of Suit Code: 371
Nature of Suit: Truth in Lending
Cause of Action: 15:1601 Truth in Lending

---

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

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

ANNER OSBALDO HERNANDEZ, )

)

)

)

Plaintiff, )

)

v. )

)

HOMEQ SERVICING, )

)

)

)

)

Defendant. )

 )

1:10cv0528 OWW DLB

ORDER DISMISSING FIRST AMENDED

COMPLAINT WITH LEAVE TO AMEND

AMENDED COMPLAINT DUE WITHIN

THIRTY (30) DAYS

Plaintiff Anner Osbaldo Hernandez (“Plaintiff”), appearing pro se and proceeding in

forma pauperis, filed the instant action on March 25, 2010. He named HomEq Servicing as

Defendant.

On April 2, 2010, the Court dismissed the complaint and granted Plaintiff leave to file an

amended complaint within thirty (30) days. On May 5, 2010, Plaintiff filed a First Amended

Complaint. 

DISCUSSION

A. Screening Standard

Pursuant to 28 U.S.C. § 1915(e)(2), the court must conduct an initial review of the

complaint for sufficiency to state a claim. The court must dismiss a complaint or portion thereof

if the court determines that the action is legally “frivolous or malicious,” fails to state a claim

upon which relief may be granted, or seeks monetary relief from a defendant who is immune

1

Case 1:10-cv-00528-OWW -DLB Document 8 Filed 05/12/10 Page 1 of 5
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

from such relief. 28 U.S.C. § 1915(e)(2). If the court determines that the complaint fails to state

a claim, leave to amend may be granted to the extent that the deficiencies of the complaint can be

cured by amendment.

Fed. R. Civ. P. 8(a) provides:

A pleading that states a claim for relief must contain: (1) a short and plain

statement of the grounds for the court’s jurisdiction, unless the court already has

jurisdiction and the claim needs no new jurisdictional support; (2) a short and

plain statement of the claim showing that the pleader is entitled to relief: and (3) a

demand for the relief sought, which may include relief in the alternative or

different types of relief. 

A complaint must contain a short and plain statement as required by Fed. R. Civ. P.

8(a)(2). Although the Federal Rules adopt a flexible pleading policy, a complaint must give fair

notice and state the elements of the claim plainly and succinctly. Jones v. Community Redev.

Agency, 733 F.2d 646, 649 (9th Cir. 1984). Plaintiff must allege with at least some degree of

particularity overt acts which the defendants engaged in that support Plaintiff's claim. Id.

Indeed, “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to

relief that is plausible on its face.’” Ashcroft v. Iqbal, — U.S. —, 129 S.Ct. 1937, 1949 (2009)

(quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). 

In reviewing a complaint under this standard, the Court must accept as true the allegations

of the complaint in question, Hospital Bldg. Co. v. Trustees of Rex Hospital, 425 U.S. 738, 740

(1976), construe the pro se pleadings liberally in the light most favorable to the Plaintiff, Resnick

v. Hayes, 213 F.3d 443, 447 (9th Cir. 2000), and resolve all doubts in the Plaintiff’s favor,

Jenkins v. McKeithen, 395 U.S. 411, 421 (1969).

B. Plaintiff’s Allegations

In the First Amended Complaint, Plaintiff has added an additional defendant, Wells Fargo

Bank. He also identified the property at issue based on an apparent description from Stanislaus

County records. With the exception of these two additions, Plaintiff’s original complaint and the

First Amended Complaint are identical. 

2

Case 1:10-cv-00528-OWW -DLB Document 8 Filed 05/12/10 Page 2 of 5
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

1. TILA

TILA confers a statutory “right of action only on a borrower in a suit against a borrower's

creditor.” Talley v. Deutsche Bank Trust Co., 2008 WL 4606302, at *2 (D.N.J. Oct.15, 2008).

Plaintiff’s amended complaint is devoid of facts demonstrating that he has standing to bring a

TILA claim as a borrower under any loan. As with his original complaint, Plaintiff’s amended

complaint is devoid of the barest factual allegations, including: (1) the type of loan at issue; (2)

the identification of the borrower(s); and (3) the identification of the lender.

Moreover, Plaintiff’s amended complaint lacks the date of loan consummation or the

dates of any other relevant events to determine whether his TILA claim for damages or for

recission is timely. 15 U.S.C. § 1640(e) (damages claims must be brought “within one year from

the date of the occurrence of the violation”); 15 U.S.C. § 1635(f) (rescission claims “shall expire

three years after the date of the consummation of the transaction or upon the sale of the property,

whichever occurs first”); 12 C.F.R. § 226.23. 

In addition, the type of loan at issue may affect Plaintiff’s ability to seek rescission. See

15 U.S.C. § 1635(e); Coward v. First Magnus Financial Corp., 2009 WL 3367398, *6 (D.Nev.

Oct. 14, 2009) (“the right to rescind under TILA exists only if the Property was not itself the

security for the loan obtained to purchase the Property”). 

Plaintiff will be given a final opportunity to amend to comply with the requirements Rule

8 and to allege sufficient factual matter to state a claim for relief that is plausible on its face. 

2. Original Note Possession

 Plaintiff again appears to challenge the proposed foreclosure of a home by a lender. 

Plaintiff’s challenge to the foreclosure is based on the premise that the “home owner” is “unsure

as to whether the lender still posses [sic] the original debt instrument” and he wants proof of such

authority. First Amended Complaint, p. 3. As with the original complaint, Plaintiff has not

identified the home owner, the lender, or any other relevant factual allegations. Plaintiff will be

given a final opportunity to amend his complaint to state sufficient factual matter to comply with

Rule 8. 

3

Case 1:10-cv-00528-OWW -DLB Document 8 Filed 05/12/10 Page 3 of 5
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

In amending his complaint, the Court reminds Plaintiff of certain legal standards

regarding non-judicial foreclosure. If a borrower defaults on a loan and the deed of trust contains

a power of sale clause, the lender may non-judicially foreclose. See McDonald v. Smoke Creek

Live Stock Co., 209 Cal. 231, 236-237, 286 P. 693 (1930). Under the relevant statutory

framework, no party needs to physically possess the promissory note. Labes v. Ocwen Loan

Servicing, LLC, 2009 WL 3748291, *6 (E.D.Cal. Nov. 5, 2009); Sicairos v. NDEX West, LLC,

2009 WL 385855, *3 (S.D.Cal.2009) (citing Cal. Civ. Code, § 2924(a)(1)). Rather, “[t]he

foreclosure process is commenced by the recording of a notice of default and election to sell by

the trustee.” Moeller v. Lien, 25 Cal.App.4th 822, 830, 30 Cal.Rptr.2d 777 (1994). An

“allegation that the trustee did not have the original note or had not received it is insufficient to

render the foreclosure proceeding invalid.” Neal v. Juarez, 2007 WL 2140640, *8

(S.D.Cal.2007).

Under California Civil Code section 2924(a)(1), a “trustee, mortgagee, or beneficiary, or

any of their authorized agents” may conduct the foreclosure process. A “trustee or mortgagee

may be liable to the trustor or mortgagor for damages sustained where there has been an illegal,

fraudulent or wilfully oppressive sale of property under a power of sale contained in a mortgage

or deed of trust.” Munger v. Moore, 11 Cal.App.3d 1, 7, 89 Cal.Rptr. 323 (1970).

D. Amended Complaint

Plaintiff will be given a final opportunity to amend his complaint to cure the deficiencies

outlined by the Court. In amending his complaint, Plaintiff is reminded that the Court cannot

refer to a prior pleading in order to make his amended complaint complete. Local Rule 220

requires that an amended complaint be complete in itself without reference to any prior pleading. 

This is because, as a general rule, an amended complaint supercedes the original complaint. See

Loux v. Rhay, 375 F.2d 55, 57 (9th Cir. 1967). Once Plaintiff files an amended complaint, the

original pleading no longer serves any function in the case. 

Accordingly, IT IS HEREBY ORDERED that Plaintiff’s complaint is DISMISSED

WITH LEAVE TO AMEND. Plaintiff may file an amended complaint within thirty (30) days of

4

Case 1:10-cv-00528-OWW -DLB Document 8 Filed 05/12/10 Page 4 of 5
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

the date of service of this order. If Plaintiff does not file an amended complaint within this time

frame and in accordance with this order, the Court will recommend that this action be dismissed. 

Plaintiff’s complaint should be clearly titled, “Second Amended Complaint,” and shall

refer to the case number assigned to this action. His complaint shall comply with Rule 8. It must

contain a short and plain statement of his claims and must clearly set forth the causes of action

alleged against Defendants. The Court also notes that the First Amended Complaint is unsigned. 

Local Rule 131 requires all pleadings to be signed by the party involved if that party is appearing

in propia persona. Therefore, any amended complaint should be signed by Plaintiff.

IT IS SO ORDERED. 

Dated: May 11, 2010 /s/ Dennis L. Beck 

3b142a UNITED STATES MAGISTRATE JUDGE

5

Case 1:10-cv-00528-OWW -DLB Document 8 Filed 05/12/10 Page 5 of 5