Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_09-cv-02380/USCOURTS-caed-2_09-cv-02380-1/pdf.json

Nature of Suit Code: 140
Nature of Suit: Negotiable Instruments
Cause of Action: 15:1601 Truth in Lending

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

----oo0oo----

BRYSON WEBB and YVONNE WEBB,

Plaintiffs,

 v.

INDYMAC BANK HOME LOAN

SERVICING, INDYMAC FEDERAL

BANK, INDYMAC MORTGAGE

SERVICES, MTC FINANCIAL, INC.

d/b/a TRUSTEE CORPS., MORTGAGE

ELECTRONIC REGISTRATION

SYSTEMS, INC., MTH MORTGAGE,

LLC, JOYCE S. PERKINS, and

DOES 1 through 20, inclusive, 

Defendants. /

NO. CIV. 2:09-2380 WBS DAD

ORDER TO SHOW CAUSE

----oo0oo----

The court has an obligation to recuse itself from any

case in which the judge might have a “financial interest,”

however small. 28 U.S.C. § 455(b)(4). Because corporate parties

are in the best position to identify their parent and subsidiary

corporations, Federal Rule of Civil Procedure 7.1 and this court

require all non-governmental corporate entities to submit

Case 2:09-cv-02380-WBS-DAD Document 48 Filed 02/16/10 Page 1 of 3
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corporate disclosure statements in order to assist the court in

carrying out its recusal obligation. 

The court explicitly required such disclosures in its

Order Setting Status (Pretrial Scheduling) Conference of August

26, 2009 and Minute Order of January 20, 2010. In so

instructing, the court emphasized the importance of corporate

disclosures and warned that failure to comply with the court’s

Order could warrant sanctions:

The purpose of the corporate disclosure requirement in

subpart (m) of this Order is to assist the court in

carrying out this obligation, because corporate parties

are in the best position to identify their parent and

subsidiary corporations. Without this information, the

court risks retaining a case in which it unknowingly has

a financial interest. As a consequence, not only would

the undersigned judge face public criticism, the public’s

confidence in an impartial judiciary would be eroded.

Failure to assist the court in protecting these and the

other interests advanced by § 455(b)(4)--especially in

the face of a clear and direct request from the

court--amounts to sanctionable conduct. 

(Aug. 26, 2009 Order Setting Status 4; see also id. (“Failure to

comply with the requirements of this subpart will result in the

Joint Status Report being stricken and sanctions being ordered

against any nongovernmental corporate party that did not submit

its corporate disclosures.”) (emphasis in original).) 

Despite the court’s clear and repeated requests,

defendant MTC Financial, Inc. has failed to file its corporate

disclosures. Accordingly, the court will order MTC Financial,

Inc. to pay sanctions of $200.00 or show good cause why sanctions

should not be levied for its failure to comply with the court’s

orders. As the court must reschedule the Status (Pretrial

Scheduling) Conference a second time to await MTC Financial,

Inc.’s compliance with the corporate disclosure requirements, the

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court will also strike the parties’ outdated Joint Status Report

of January 4, 2010 and require a Supplemental Joint Status

Report. 

IT IS THEREFORE ORDERED that, within ten days of the

date of this Order, defendants MTC Financial, Inc. shall either

(1) pay sanctions in the amount of $200.00 to the Clerk of the

Court; or (2) submit a statement of good cause explaining its

failure to comply with the court’s prior orders. 

IT IS FURTHER ORDERED that the Status (Pretrial

Scheduling) Conference set for February 22, 2010 is vacated and

reset for March 22, 2010. The Joint Status Report filed January

4, 2010 is hereby stricken and the parties shall file a

Supplemental Joint Status Report that includes MTC Financial,

Inc.’s corporate disclosures no later than March 8, 2010. 

DATED: February 12, 2010

Case 2:09-cv-02380-WBS-DAD Document 48 Filed 02/16/10 Page 3 of 3