T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by 9th C i r . R . 36- 3.

T h e p a r tie s c o n s e n te d to p r o c e e d b e f o r e am a g is tr a te ju d g e . See 28 ** U . S . C . § 6 36 (c ).

T he pa ne l una ni m ous l y c onc l ude s thi s c a s e i s s ui t abl e f orde c i s i on *** w ith o u t o r a l a r g u m e n t. See F ed. R . A pp . P . 34 (a )( 2). NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T V I RG I LI O O RCI LLA ; TEO D O RA OR C I L L A, P l ai n t i ffs - A p p el l an t s, v. B A N K O F A M E R I C A , N .A .; e t a l., D efen d an t s - A p p el l ees. N o. 11- 16727 D . C. N o . 5 : 1 0 - c v - 0 3 9 3 1 - H RL ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e N o r th e rn D is tr ic t o f C a lif o rn ia H ow a r d R . L l oy d, M a gi s tr a t e J udge , P r e s i di ng **

S ubm i tt e d M a y 14, 2013 *** B efo re: L E A V Y , T H O M A S , an d M U R G U IA , C i rcu i tJu d g es. V i r gi l i o a nd T e odor aO r c i l l aappe a l pr o s e f r om the di s tr i c tc our t ’ s j udgm e nt di s m i s s i ng the i ra c t i on a r i s i ng f r om f or e c l os ur e pr oc e e di ngs . W e ha ve j ur i s di c t i on



# FI LED MA Y21 2 013 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS11- 16727 2 u n d e r2 8 U .S .C . § 1 2 9 1 . W e r e v ie w d e n o v o , C e r v a n te s v . C o u n tr y w i de Ho me L oa ns, Inc. , 6 5 6 F .3 d 1 0 3 4 , 1 0 4 0 - 4 1 ( 9 th C ir . 2 0 1 1 ) , a n d w e a f f irm . T he di stri ctcourtprop er l y di sm i ss ed the O rc i l l as ’ fe dera l brea ch of contra ct c l a i m be c aus e the O r c i l l a s w e r e noti nt e nde d thi r d- pa r ty be ne f i c i a r i e s of

the S e rv ic e rP a r tic ip a tio n A g r e e m e n t. See GE C C M C , 20 05 -C 1 P lum m erSt . O f f i ce L. P. v . J PM o r g a n Ch a s e Ba n k

, N. A. , 67 1 F . 3d 10 27 , 10 33 (9th C i r. 20 12 ) ( “ P art i es thatbenefi tfr om a gov ernm entcontra ctar e genera l l y a ss um ed t o b e i nci dent al be ne f i c i a r i e s , r a the rtha n i nt e nde d be ne f i c i a r i e s , a nd s o m a y note nf or c e the c ontr a c tabs e ntac l e a ri nt e ntt o the c ontr a ry . ” ( c i t a t i on a nd i nt e rna l quot a t i on m a rk s o m itte d ) ) ; Klam ath W ate rU s e rs P r ote c t i v e A s s oc ’ n v . P at te rs on , 204 F . 3d 1206, 1211 ( 9th C i r . 1999) ( pl a i n l a ngua ge of gove rnm e ntc ontr a c tw a s s uf f i c i e nt t o sho w l ac k o f i nt entt o g rantthi rd-party benef i ci ary r i gh t s) . T h e d i stri ctco u rtp ro p erl y d i sm i ssed th e O rci l l as’ p ro ced u ral d u e p ro cess c la im b e c au s e th e O r c illa s d id n o t h a v e ap r o te c te d p r o p e r ty in te r e s t in m o d if ic a tio n o f

th e irm o r tg a g e lo a n . See D o yle v. C i t y o f Med f o rd , 606 F . 3d 667, 67 2 (9th C i r. 20 10 ) ( go vernm entprog ra m grant i ng deci si on -m akerbroad di sc re t i on do es no tcr ea t e aprop erty i nt er es t ); s e e a ls o B d. o f R eg e n ts v . R o th , 408 U . S . 56 4, 56 9-70 (197 2) (procedural prot ec t i on s of due process cl ause ar e tri gg er ed on l y w hen there i s acogn i zabl e l i berty or property i nt er es tatst ake) .11- 16727 3 T he di s tr i c tc our tpr ope r l y di s m i s s e d the O r c i l l a s ’ R a c ke t e e rI nf l ue nc e d a nd C orruptO r ga ni z a t i ons A c tc l a i m be c aus e the a l l e ga t i ons i n the i rc om pl a i ntdi d not s e tf or th f a c t s de m ons tr a t i ng the r e qui s i t e pa tt e rn of r a c ke t e e r i ng a c t i vi ty i nvol vi ng m o r e th a n o n e tr a n s a c tio n . Se e Se v e rv . A las ka P ul p C or p. , 978 F . 2d 1529, 1535 (9 th C i r. 1 9 9 2 ) (p att ern req u i res m o re th an o n e sch em e w i th a “ si n g l e p u rp o se w hi ch happ en[s ] t o i nv ol ve m ore than o ne ac tt aken t o achi eve thatpu rpose” ). T h e d is tr ic t c o u r t d id n o t ab u s e its d is c r e tio n b y d e n y in g th e O r c illa s le a v e to f ile a n a m e n d e d c o m p la in t b e c au s e a m e n d m e n t w o u ld b e f u tile . See C ervant es , 65 6 F . 3d at10 41 (s ett i ng forth st andard of revi ew ). T h e d i stri ctco u rtd i d n o tab u se i t s d i scret i o n i n d ecl i n i n g t o ex erci se s u p p le m e n ta l ju r is d ic tio n o v e rth e O r c illa s ’ s ta te la w c la im s a f te rd is m is s in g th e ir f e d e r a l c la im s . See 2 8 U .S .C . § 1 3 6 7 ( c ) ( 3 ) ; O v e v . G w i nn , 2 6 4 F .3 d 8 1 7 , 8 2 1 ( 9 th C i r. 20 01 ) ( se tt i ng forth the st andard of revi ew ). W e de ny B i g S ur , I nc . ’ s r e que s tf orj udi c i a l not i c e , f

i l e d on D e c e m be r9, 2011. AF F I RME D.