Source: http://ca.findacase.com/research/wfrmDocViewer.aspx/xq/fac.20110331_0004815.ECA.htm/qx
Timestamp: 2017-05-26 22:55:36
Document Index: 164276179

Matched Legal Cases: ['§ 1916', '§ 2923', '§ 2923', '§ 2923', '§ 2923', '§ 2924', '§ 2924', '§ 2923', '§ 338']

| George A. Brown v. Bank of America N.A.
George A. Brown v. Bank of America N.A.
GEORGE A. BROWN, PLAINTIFF,v.BANK OF AMERICA N.A., ET AL., DEFENDANTS.
On May 28, 2010, plaintiff, proceeding pro se, filed a complaint for damages in Placer County Superior Court. On July 8, 2010, Bank of America, N.A., the only defendant named in the complaint, removed the case to the above-captioned district court. The case was referred to the undersigned pursuant to Local Rule 302(c)(21).
On July 15, 2010, defendant filed a motion to dismiss plaintiff's claims with prejudice pursuant to Federal Rules of Civil Procedure 8(a) and 12(b)(6) on the grounds that plaintiff's complaint fails to satisfy the notice requirements of Rule 8(a) and fails to state any legally cognizable claim upon which relief may be granted. The record reflects that defendant's motion was properly served on the pro se plaintiff. On August 27, 2010, the case came before the court for hearing on defendant's properly noticed motion. Brett B. Goodman, Esq. appeared telephonically for the defendant. No appearance was made by or on behalf of plaintiff.
LEGAL STANDARDS APPLICABLE TO MOTIONS TO DISMISS The purpose of a motion to dismiss pursuant to Rule 12(b)(6) is to test the legal sufficiency of the complaint. N. Star Int'l v. Ariz. Corp. Comm'n, 720 F.2d 578, 581 (9th Cir. 1983). "Dismissal can be based on the lack of a cognizable legal theory or the absence of sufficient facts alleged under a cognizable legal theory." Balistreri v. Pacifica Police Dep't, 901 F.2d 696, 699 (9th Cir. 1990). A plaintiff is required to allege "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). Thus, a defendant's Rule 12(b)(6) motion challenges the court's ability to grant any relief on the plaintiff's claims, even if the plaintiff's allegations are true.
The title of plaintiff's complaint reveals that the action arises from mortgage foreclosure proceedings. The following eleven claims are enumerated in the caption of the pleading: vacate and set aside foreclosure sale; intentional misrepresentation and deceit or fraud; predatory lending practices; breach of fiduciary duty; intentional violation of California Civil Code §§ 1916.7, 1920, and 1921; demand for accounting; unfair business practices; breach of covenant of good faith and fair dealing; declaratory relief; quiet title; and injunctive relief. (Compl. (Doc. No. 1 at 13-32) at 1.)
In his complaint plaintiff alleges as follows: the property at issue is residential real property located in Auburn in Placer County; defendant Bank of America was engaged in making and selling risky loans when plaintiff refinanced his property; defendant engaged in negligent lending practices in areas of Placer County primarily populated by minority races for the purpose of generating as many sub-prime loans as possible for sale to investors; defendant enticed minority borrowers to obtain loans they would not have qualified for under conventional loan practices; plaintiff was a victim of defendant's improper sales efforts; defendant paid a broker a fee to steer plaintiff into a higher rate loan; plaintiff was assured that the amount of the proposed loan would not exceed $129,500, but defendant paid an appraiser to appraise the property at an amount greater than its actual value; plaintiff discovered after loan closing that he had been misled; plaintiff was fraudulently induced by defendant Bank of America into refinancing his property through this tainted loan; in March 2008 plaintiff defaulted on his loan payments; between March 2008 and May 2010 plaintiff was deceived into believing that defendant would make a reasonable and fair loan modification; defendant did not qualify plaintiff for a loan modification agreement and did not offer to reduce the loan amount due; defendant commenced a non-judicial foreclosure proceeding and held a foreclosure sale with respect to the subject property on May 24, 2010. (Compl. ¶¶ 1-19 & 25.)
Plaintiff seeks rescission of the loan, compensatory and special damages, punitive and exemplary damages, an order reconveying the property to him, a declaration deeming defendant's actions to be unfair and deceptive business practices and deeming defendant to have no interest in the subject property, an accounting, an order requiring defendant to produce the original loan documents, an order quieting title, a preliminary injunction prohibiting defendant from selling or interfering with plaintiff's possession of the property pending resolution of this action, and costs of suit. (Compl. at 28-31.)
PLAINTIFF'S FAILURE TO OPPOSE DEFENDANT'S MOTION As noted, defendant filed its motion to dismiss on July 15, 2010. Plaintiff did not file timely written opposition to the motion, did not appear at the hearing held on August 27, 2010, and did not file any written opposition subsequent to the hearing. The court's docket for this case reflects that plaintiff has filed nothing in this action since it was removed from state court. Plaintiff's failure to appear at the properly noticed hearing on defendant's motion to dismiss may, in the discretion of the court, be deemed a statement of no opposition to the granting of the motion. See Local Rule 230(i). An inference of non-opposition in the present case is supported by plaintiff's failure to file written opposition combined with his failure to appear at the hearing. See Local Rule 230(c) ("No party will be entitled to be heard in opposition to a motion at oral arguments if opposition to the motion has not been timely filed by that party.").
The undersigned finds that plaintiff's failure to file written opposition and failure to appear at the hearing on defendant's motion to dismiss, considered together with plaintiff's failure to participate in this action since its removal to federal court, should be deemed a statement of no opposition to the granting of defendant's motion. Nonetheless, in light of plaintiff's pro se status, the undersigned has reviewed defendant's arguments in support of dismissal and finds them to be well taken with respect to each of plaintiff's claims.
At the outset, in connection with the pending motion defendant has requested judicial notice of two documents related to matters at issue. (Doc. No. 6.) Defendant's request for judicial notice will be granted pursuant to Federal Rule of Evidence 201. See Lee v. City of Los Angeles, 250 F.3d 668, 688-89 (9th Cir. 2001) (on a motion to dismiss, court may consider matters of public record); MGIC Indem. Corp. v. Weisman, 803 F.2d 500, 504 (9th Cir. 1986) (on a motion to dismiss, the court may take judicial notice of matters of public record outside the pleadings). Accordingly, the undersigned takes judicial notice of plaintiff's Deed of Trust recorded October 4, 2005, and the California Department of Corporations' List of Licensees showing that Bank of America, N.A. is permanently exempted from compliance with Civil Code § 2923.52(a). (Def't's Req. for Judicial Notice in Supp. of Mot. to Dismiss, Exs. A & B.)
I. Wrongful Foreclosure/Rescission
In his first cause of action, plaintiff seeks to vacate and set aside the foreclosure sale of the subject property on the ground that the sale conducted was in violation of California Civil Code §§ 2923.5a and 2924. However, there does not appear to be a private right of action under California Civil Code § 2923.5. See Zendejas v. GMAC Wholesale Mortgage Co., No. 1:10-CV-00184 OWW GSA, 2010 WL 2629899, at *4-5 (E.D. Cal. June 29, 2010); Gaitan v. Mortgage Elec. Registration Sys., No. EDCV 09-1009 VAP (MANx), 2009 WL 3244729, at *9 (C.D. Cal. Oct. 5, 2009); Yulaeva v. Greenpoint Mortgage Funding, Inc., No. CIV. S-09-1504 LKK/KJM, 2009 WL 2880393, at *10-11 (E.D. Cal. Sept. 3, 2009). Moreover, plaintiff merely accuses defendant of "illegal recording of the Notice of Default" but fails to allege that the notice of default was improper in any way and fails to allege violation of any specific provision of California Civil Code § 2923.5(a) or § 2924. Finally, to the extent that § 2924 requires compliance with § 2923.52, defendant Bank of America is exempted from the compliance provisions.
The court also notes that to the extent plaintiff seeks an order declaring the foreclosure proceedings to have been in violation of state law and/or for the rescission of his mortgage loan agreement, his claim fails because he has not alleged the ability to tender the entire amount due on the mortgage loan to defendant.
Somera v. Indymac Federal Bank, FSB, No. 2:09-cv-1947-FCD-DAD, 2010 WL 761221, at *8 (E.D. Cal. Mar. 3, 2010). See also Yamamoto v. Bank of New York, 329 F.3d 1167, 1171 (9th Cir. 2003) (holding that rescission "should be conditioned on repayment of the amounts advanced by the lender" and explaining that, because rescission is a remedy that restores the status quo ante, a borrower seeking rescission is required to allege ability to tender the loan proceeds).
For all of these reasons, defendant's motion to dismiss plaintiff's first cause of action should be granted.
II. Intentional Misrepresentation, Deceit and Fraud
In his second cause of action, plaintiff seeks damages for alleged intentional misrepresentation, deceit and fraud. In California, an action for relief on the ground of fraud or mistake must be brought within three years after the aggrieved party discovers the facts constituting fraud or learns facts sufficient to make a reasonably prudent person suspicious of fraud. Cal. Code of Civ. Proc. § 338(d); Platt Elec. Supply, Inc. v. EOFF Elec., Inc., 522 F.3d 1049, 1054 (9th Cir. 2008). Plaintiff alleges that he was fraudulently induced to refinance his property on September 28, 2005, and discovered the fraud immediately after loan origination. Plaintiff alleges that he then made payments on the loan for three ...