Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_18-cv-01370/USCOURTS-casd-3_18-cv-01370-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity Action

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

ROBERT WILDE, individually and on 

behalf of all others similarly situated,

Plaintiff,

vs.

FLAGSTAR BANK FSB., et al.,

Defendants.

CASE NO. 18cv1370-LAB (BGS)

ORDER GRANTING STAY [Dkt. 12]

In June 2018, Plaintiff Robert Wilde filed this suit against Flagstar Bank and Flagstar 

Bancorp, alleging that Defendants failed to pay interest on his mortgage escrow balance in 

violation of California law. Flagstar filed a motion to dismiss, and a hearing on that motion 

is scheduled for November 19, 2018. Dkt. 11. The parties now jointly move to stay 

proceedings in light of the Ninth Circuit’s recent decision in Lusnak v. Bank of America, N.A., 

883 F.3d 1185 (9th Cir. 2018), which held that California’s mortgage escrow interest statute 

is not preempted by federal law. The respondent in that case, Bank of America, has filed a 

petition for writ of certiorari to the United States Supreme Court, and the parties expect the 

Supreme Court to rule on the petition by the end of 2018. 

Whether the California law at issue here is preempted by federal law could be 

dispositive, so the Court agrees a stay is warranted. This proceeding is therefore STAYED 

pending the Supreme Court’s resolution of the petition for writ of certiorari in Lusnak v. Bank 

of America. Within one week of the Supreme Court ruling on that petition, the parties are to 

Case 3:18-cv-01370-LAB-BGS Document 13 Filed 11/05/18 PageID.<pageID> Page 1 of 2
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file a notice informing this Court of the outcome. The November 19, 2018 hearing on 

Defendants’ motion to dismiss is VACATED. The Court will reset the briefing schedule and, 

if necessary, set a new hearing date after the petition is resolved.

IT IS SO ORDERED.

Dated: November 5, 2018

HONORABLE LARRY ALAN BURNS

United States District Judge

Case 3:18-cv-01370-LAB-BGS Document 13 Filed 11/05/18 PageID.<pageID> Page 2 of 2