Marlon Staggs et al v. Mortgage Electronic Registration Systems Inc et al

Filing 50

MINUTE ORDER (IN CHAMBERS) -- ORDER TO SHOW CAUSE by Judge Christina A. Snyder: Citibank is hereby ordered to show cause on or before 4/7/2012, as to whether plaintiffs have adequately pled a TILA claim against Citibank. Citibank's submission shall not exceed ten (10) pages. Plaintiffs shall file an opposition not to exceed ten (10) pages on or before 4/16/2012. See document for further details. (smom) Modified on 3/22/2012 (smom).

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

CV 12-1002 CAS (VBKx)

Title

MARLON STAGGS, et al. v. MORTGAGE ELECTRONIC
REGISTRATION SYSTEMS, INC., et al.

Present: The Honorable

Date

March 22, 2012

CHRISTINA A. SNYDER, United States District Judge

Catherine M. Jeang
Deputy Clerk

Not Reported
Court Reporter / Recorder

N/A
Tape No.

Attorneys Present for Plaintiffs:

Attorneys Present for Defendants:

Not Present

Not Present

Proceedings:

I.

(In Chambers:) ORDER TO SHOW CAUSE RE: LIABILITY
UNDER TRUTH IN LENDING ACT

INTRODUCTION

On February 6, 2012, plaintiffs Marlon and Christine Staggs filed suit against
Mortgage Electronic Registration Systems, Inc. (“MERS”); Recontrust Company, N.A.
(“Recontrust”); Countrywide Financial Corp. (“Countrywide Financial”); Countrywide
Home Loans, Inc. (“Countrywide”); Countrywide Home Loans Servicing, L.P. FKA
BAC Home Loan Servicing; Bank of America, N.A. (“Bank of America”); BAC Home
Loans Servicing L.P. (“BAC”); Eddie Avakian; LandSafe Apprisal Services Inc.
(“LandSafe Apprisal”); LandSafe, Inc. (“LandSafe”); Hearn Quality Assurance (“Hearn
Quality”); Mark Hearn; TC Appraisals; C. Bill Lee; Martel Lofts LLC (“Martel”); Omri
Meron; AMI Real Estate, Inc. (“AMI”); Citibank, N.A. (“Citi”); Bear Sterns Alt-A Trust
2006-7 (“Bear Sterns Alt-A”); Certificate Holders of Bear Sterns Alt-A Trust 2006-7 as a
separate unknown legal entity; Structured Asset Mortgage Investments II, Inc.
(“SAMI”); Wells Fargo Bank, National Association (“Wells Fargo”); and Does 1–10.
The complaint asserts thirteen claims for relief, styled as: (1) declaratory relief to
void the foreclosure sale; (2) unjust enrichment; (3) wrongful foreclosure; (4) tortious
interference with contractual relations; (5) promissory estoppel/constructive trust; (6)
slander of title; (7) declaratory relief/quiet title; (8) equitable estoppel; (9) violation of
the Truth in Lending Act, 15 U.S.C. § 1641(f)(2) (“TILA”); (10) violation of Cal. Bus. &
Prof. Code §§ 17200 et seq.; (11) violation of Cal. Bus. & Prof. Code §§ 11300 et seq.;
(12) injunctive relief; (13) violation of the Real Estate Settlement Procedures Act, 12
U.S.C. § 2605.

CV-90 (06/04)

CIVIL MINUTES - GENERAL

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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

CV 12-1002 CAS (VBKx)

Date

March 22, 2012

Title

MARLON STAGGS, et al. v. MORTGAGE ELECTRONIC
REGISTRATION SYSTEMS, INC., et al.

On February 28, 2012, MERS, Recontrust, Countrywide Financial, Countrywide,
Bank of America (“BofA”), LandSafe Appraisal, and LandSafe filed a motion to dismiss
the complaint pursuant to Fed. R. Civ. P. 12(b)(6). Wells Fargo, Citibank, Hearn
Quality, and Mark Hearn joined in the motion. Plaintiffs filed their opposition on March
13, 2012. Hearing on the motion is currently scheduled for April 23, 2012.
II.

DISCUSSION

Plaintiffs allege that Bank of America, BAC, SAMI, Citibank, Wells Fargo, and
Bear Sterns Alt-A violated TILA by failing to properly respond to plaintiffs’ written
requests for “the name, address, and telephone number of the owner of the obligation or
the master servicer of the obligation.” Compl. ¶¶ 288, 293–94.
In order to plead a valid claim under § 1641(f)(2), plaintiffs must allege that the
servicing entity that violated TILA is also the owner of plaintiffs’ obligation. See 15
U.S.C. § 1641(f)(2); Banut v. BAC Home Loans Servicing, LP, 2011 WL 5237751, *1–2
(E.D. Cal. Oct. 28, 2011).
Here, plaintiffs attach a letter to their complaint stating that “Citibank, N.A., As
Trustee For the Holders of Bear Stearns Alt-A Trust 2006-7, Mortgage Pass-Through
Certificates, Series 2006-7” is the “Owner of the Note.” Compl., Exh. 39. Defendants’
motion to dismiss addresses plaintiffs’ TILA claim only as to Bank of America and
BAC, and does not address plaintiffs’ TILA claim as to Citibank. Accordingly, Citibank
is ordered to show cause as to whether plaintiffs have adequately pled a TILA claim
against Citibank.
III.

CONCLUSION

Based on the foregoing, Citibank is hereby ORDERED to SHOW CAUSE on or
before April 7, 2012, as to whether plaintiffs have adequately pled a TILA claim against
Citibank. Citibank’s submission shall not exceed ten (10) pages. Plaintiffs shall file an
opposition not to exceed ten (10) pages on or before April 16, 2012.
IT IS SO ORDERED.
:
Initials of Preparer
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SMOM
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