Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_10-cv-02145/USCOURTS-azd-2_10-cv-02145-0/pdf.json

Nature of Suit Code: 220
Nature of Suit: Foreclosure
Cause of Action: 28:1441 Petition for Removal- Declaratory Judgement

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Cynthia J. Cantrell, 

Plaintiff, 

vs.

Bank of America, N.A., et al., 

Defendants. 

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No. CV-10-02145-PHX-FJM

ORDER

The court has before it plaintiff Cynthia Cantrell’s motion to remand (doc. 16),

defendants Bank of America, BAC Home Loans Servicing, ReconTrust Company,

Countrywide Home Loans, and Mortgage Electronic Registration Systems’ response (doc.

21), and plaintiff’s reply (doc. 25). We also have before us defendants’ motion to dismiss

(doc. 10), defendant Homecomings Financial’s joinder (doc. 14), plaintiff’s response and

“Motion to Deny Joinder” (docs. 19 & 20), and defendants’ reply (doc. 24). Finally, we have

before us plaintiff’s “Petition for Order: Ordering Defendants to Surrender the Genuine

Original Adjustable Rate Note” (doc. 22), defendants’ response (doc. 26), defendants’ motion

to strike plaintiff’s “Pleading in Support of Motion to Remand” (doc. 28), plaintiff’s response

(doc. 29), and defendants’ reply (doc. 30).

I

In 2006, plaintiff borrowed $448,000.00 from Homecomings Financial and secured

the loan with a deed of trust on her home in Scottsdale, Arizona. The home is currently

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subject to a trustee’s sale noticed in February 2010. Although she made payments on the

loan for some time, plaintiff alleges that she never received a loan because the note referred

to “Cynthia Cantrell, an unmarried woman,” a name she does not use. She also claims that

she did not receive a loan because the note’s operative language was in the past tense, instead

of the present tense, and the note did not have a seal. Moreover, plaintiff seeks to enjoin the

trustee’s sale based on the beneficiary of the deed of trust not owning the note, notary fraud,

and a failure to comply with the deed of trust’s notice provisions.

Plaintiff filed this action in the Superior Court of Arizona in Maricopa County on

September 27, 2010. Defendants removed it to this Court based on diversity jurisdiction, 28

U.S.C. § 1332. It is the second time an action challenging the pending trustee’s sale has been

removed to this Court. Plaintiff’s prior action, No. CV-10-900-PHX-ROS, was dismissed

with prejudice ten days before she filed the present one (prior doc. 102). In that action, as

in this one, plaintiff claimed that she had never received a loan and sought to enjoin the

trustee’s sale based on notary fraud and breaks in the chain of ownership of the deed of trust

and the note (prior doc. 46). She also raised violations of federal law. Instead of naming the

current defendant entities, however, plaintiff named their corporate executives acting in their

official capacities. In an Order of September 2, 2010, plaintiff was advised that her claims

were meritless and that, because her allegations only involved actions taken by the

corporations, it was clear that she had named the wrong defendants (prior doc. 87 at 4-5).

The Court informed her that she needed to name the corporations as defendants if she

believed that the corporations had harmed her (prior doc. 87 at 5 n.1). In a proposed third

amended complaint, plaintiff again failed to state a non-frivolous claim or name the proper

defendants, which resulted in a dismissal with prejudice (prior doc. 102). She did not file an

appeal.

II

As an initial matter, we note that plaintiff’s briefs contain vague, baseless accusations

concerning the impartiality of this Court. We reject them summarily.

Plaintiff contests removal because of the effect of the citizenship of fictitiously-named

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defendants on diversity jurisdiction. For purposes of removal based on diversity jurisdiction,

however, “the citizenship of defendants sued under fictitious names shall be disregarded.”

28 U.S.C. § 1441(a). Plaintiff also refers to criminal law, notions of federalism, the Arizona

Constitution, and portions of federal jurisdictional statutes. But she does not raise a coherent

basis for remand. Therefore, we deny plaintiff’s motion to remand.

Defendants contend that plaintiff’s claims are barred by the doctrine of claim

preclusion, which promotes the final resolution of disputes through court judgments by

preventing repetitive actions. See Tahoe-Sierra Pres. Council, Inc. v. Tahoe Reg’l Planning

Agency, 322 F.3d 1064, 1077 (9th Cir. 2003). Claim preclusion bars parties from alleging

claims based on a cause of action already decided on the merits, even if the claims were not

alleged in the first action. Id. We apply federal preclusion law to determine the effect of a

federal judgment based on federal question jurisdiction. See Taylor v. Sturgell, 553 U.S.

880, 891, 128 S. Ct. 2161, 2171 (2008). The criteria for claim preclusion are an identity of

claims, a final judgment on the merits, and privity. Tahoe-Sierra, 322 F.3d at 1077.

To determine whether claims are based on the same cause of action, that is, whether

there is an identity of claims, we look to (1) whether interests established in the prior

judgment would be impaired, (2) whether substantially the same evidence is presented in the

two actions, (3) whether infringement of the same right is involved, and, most importantly,

(4) whether the two actions arise out of the same transactional nucleus of facts. United States

v. Liquidators of European Fed. Credit Bank, Nos. 09-10116, 09-10161, 09-10183, 2011 WL

9730, at *10 (9th Cir. Jan. 4, 2011). Plaintiff’s present claims, which are based on the nonexistence of a loan and the impropriety of a trustee’s sale, fall well within the same

transactional nucleus of facts as her prior claims. The remaining factors do not weigh against

a finding of identity, and plaintiff does not argue otherwise. Plaintiff also does not dispute

that a dismissal with prejudice for failure to state a claim is a final judgment on the merits.

See Stewart v. U.S. Bancorp, 297 F.3d 953, 957 (9th Cir. 2002).

The final criterion, privity, exists if there is a sufficient commonality of interest

between the parties of the two actions. Tahoe-Sierra, 322 F.3d at 1081. It is “a flexible

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concept dependent on the particular relationship between the parties in each individual set

of cases.” Id. at 1081-82. Plaintiff argues that the defendant entities cannot claim a

connection with their corporate executives after they asserted that their executives were not

liable for their activities in her prior action. It is telling that plaintiff believes the defendant

entities made assertions in her prior action. In that action, she not only named the executives

acting in their official capacities, she did so without including individualized allegations and

refused to name the entities when the court advised her that her claims were against them.

To the extent that plaintiff is not, in effect, suing the same defendants, we conclude that there

is privity between the parties in the two actions. See Pedrina v. Chun, 97 F.3d 1296, 1302

(9th Cir. 1996) (discussing privity between a corporation and its officers). Because the three

criteria for claim preclusion are satisfied, plaintiff is barred from re-litigating her prior action

by alleging the present claims. We grant defendants’ motion to dismiss.

IT IS THEREFORE ORDERED DENYING plaintiff’s motion to remand (doc. 16)

and “Motion to Deny Joinder” (doc. 20).

IT IS FURTHER ORDERED GRANTING defendants’ motion to dismiss and

joinder (docs. 10 & 14). Plaintiff’s claims are dismissed with prejudice because they are

barred by claim preclusion.

IT IS FURTHER ORDERED DENYING plaintiff’s “Petition for Order” (doc. 22)

and defendants’ motion to strike (doc. 28) as moot.

The clerk shall enter final judgment in favor of defendants and against plaintiff.

DATED this 2nd day of February, 2011.

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