Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_07-cv-01591/USCOURTS-casd-3_07-cv-01591-1/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:1601 Truth in Lending

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- 1 - 07cv1591

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

ANDREW K. WROBEL,

Plaintiff,

CASE NO. 07CV1591-IEG(BLM)

ORDER DENYING APPLICATION

FOR ORDER TO SHOW CAUSE RE:

CONTEMPT; SETTING TIME

TABLE FOR RESCISSION TENDER

AND FOR LIFTING OF

PRELIMINARY INJUNCTION

vs.

S.L. POPE & ASSOCIATES, an entity of

unknown form, et al.,

Defendant.

A Status Conference was held before Chief Judge Irma E. Gonzalez on Tuesday, October

9, 2007. The purpose of the hearing was to set a timetable and mechanism for implementing the

payment of restitution as a requirement of rescission as set forth in the preliminary injunction

order. Deborah Raymond appeared on behalf of Plaintiff. James Jay Stoffel appeared on behalf of

Defendants S.L. Pope & Associates and Sammy Pope. Keith McKellogg appeared on behalf of

the remaining Defendants. Both parties filed status reports setting forth their proposal regarding

the tender of restitution. In addition, prior to the hearing, Plaintiff filed an application for an order

to show cause re: contempt, arguing Defendants violated the terms of the preliminary injunction

by maintaining a foreclosure sale date. On the morning of the hearing, Defendants filed an

opposition to the application.

The Court DENIES the Plaintiff’s application for an order to show cause. The Court finds

the postponement of the foreclosure sale date does not violate the spirit and intent of the

Case 3:07-cv-01591-IEG-BLM Document 31 Filed 10/11/07 Page 1 of 2
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 In the absence of a full settlement agreement will be with a reservation of rights based upon

the affirmative defense of the forbearance and release agreement. 

- 2 - 07cv1591

preliminary injunction order. Pursuant to Cal. Civ. Code § 2924g, the foreclosure trustee was

entitled to postpone the sale date, and the preliminary injunction order did not require Defendants

or the trustee to cancel the sale.

With regard to the time table and mechanism for tender of restitution as a requirement of

rescission, the Court finds it appropriate at this point in the proceedings to require Plaintiff to

establish his ability to pay Defendants back the net amount of the loan. Yamamoto v. Bank of

New York, 329 F.3d 1167, 1173 (9th Cir. 2003). The Court, by way of its temporary restraining

order and preliminary injunction, has found Plaintiff has a “fair chance of success” on the merits of

his Truth in Lending Act claim. Nevertheless, based upon the evidence before the Court

throughout the preliminary proceedings, the Court has doubts whether the Plaintiff has the ability

to tender to Defendants the net amount of the loan as required as a condition for rescission. Id.

The Plaintiff tendered his notice of rescission on June 15, 2007. Defendants have agreed to

accept the restitution amount of $1,012,970.1

 Plaintiff has already submitted a loan application to

obtain funds to pay the restitution amount. As a result, the Court finds it appropriate to allow

Plaintiff approximately 60 additional days to obtain the loan funding. The Court orders

Defendants to direct the foreclosure trustee, Action Foreclosure Services, Inc., to postpone the

scheduled nonjudicial foreclosure sale to a date not earlier than January 2, 2008. Regardless of

whether Plaintiff is able to obtain the loan funding, the preliminary injunction will be lifted

effective December 17, 2007. The Court denies Plaintiff’s request to order Defendants to rescind

the notice of default of record. The parties are ordered to meet and confer to set any interim

schedule and deadlines they deem appropriate.

IT IS SO ORDERED.

DATED: October 11, 2007

IRMA E. GONZALEZ, Chief Judge

United States District Court

Case 3:07-cv-01591-IEG-BLM Document 31 Filed 10/11/07 Page 2 of 2