Perez v. Quicken Loans Mortgage Services
Filing
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ORDER GRANTING Plaintiff's 2 Motion to Proceed In Forma Pauperis; ORDER DISMISSING COMPLAINT WITH LEAVE TO AMEND, signed by Magistrate Judge Jennifer L. Thurston on 4/9/2018. Amended complaint due within 30 days. (Hall, S)
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UNITED STATES DISTRICT COURT
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EASTERN DISTRICT OF CALIFORNIA
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CARMEN DOLORES PEREZ,
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Plaintiff,
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v.
QUICKEN LOANS MORTGAGE
SERVICES,
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Defendant.
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Case No.: 1:17-cv-1765- AWI- JLT
ORDER GRANTING PLAINTIFF’S MOTION
TO PROCEED IN FORMA PAUPERIS (Doc. 2)
ORDER DISMISSING PLAINTIFF’S
COMPLAINT WITH LEAVE TO AMEND
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Cory Joe Pearson seeks to proceed pro se and in forma pauperis with an action against
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Quicken Loans Mortgage Services. (Docs. 1, 2) For the following reasons, Plaintiff’s motion to
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proceed in forma pauperis is granted. However, as explained below, Plaintiff fails state facts sufficient
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to support a claim. Therefore, the complaint is dismissed with leave to amend.
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I.
Proceeding in forma pauperis
The Court may authorize the commencement of an action without prepayment of fees “by a
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person who submits an affidavit that includes a statement of all assets such person . . . possesses [and]
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that the person is unable to pay such fees or give security therefor.” 28 U.S.C. § 1915(a). The Court
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reviewed the financial status affidavit filed by Plaintiff (Doc. 2), and finds he satisfies the
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requirements of 28 U.S.C. § 1915(a). Therefore, Plaintiff’s request to proceed in forma pauperis is
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GRANTED.
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II.
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Screening Requirement
When an individual seeks to proceed in forma pauperis, the Court is required to review the
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complaint and shall dismiss a complaint, or portion of the complaint, if it is “frivolous, malicious or
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fails to state a claim upon which relief may be granted; or . . . seeks monetary relief from a defendant
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who is immune from such relief.” 28 U.S.C. § 1915A(b); 28 U.S.C. § 1915(e)(2). A plaintiff’s claim
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is frivolous “when the facts alleged rise to the level of the irrational or the wholly incredible, whether or
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not there are judicially noticeable facts available to contradict them.” Denton v. Hernandez, 504 U.S.
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25, 32-33 (1992).
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III.
Pleading Standards
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General rules for pleading complaints are governed by the Federal Rules of Civil Procedure. A
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pleading must include a statement affirming the court’s jurisdiction, “a short and plain statement of the
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claim showing the pleader is entitled to relief; and . . . a demand for the relief sought, which may
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include relief in the alternative or different types of relief.” Fed. R. Civ. P. 8(a).
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A complaint must give fair notice and state the elements of the plaintiff’s claim in a plain and
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succinct manner. Jones v. Cmty. Redevelopment Agency, 733 F.2d 646, 649 (9th Cir. 1984). The
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purpose of the complaint is to inform the defendant of the grounds upon which the complaint stands.
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Swierkiewicz v. Sorema N.A., 534 U.S. 506, 512 (2002). The Supreme Court noted,
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Rule 8 does not require detailed factual allegations, but it demands more than an
unadorned, the-defendant-unlawfully-harmed-me accusation. A pleading that offers
labels and conclusions or a formulaic recitation of the elements of a cause of action will
not do. Nor does a complaint suffice if it tenders naked assertions devoid of further
factual enhancement.
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Ashcroft v. Iqbal, 556 U.S. 662, 678-79 (2009) (internal quotation marks and citations omitted). Vague
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and conclusory allegations do not support a cause of action. Ivey v. Board of Regents, 673 F.2d 266,
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268 (9th Cir. 1982). The Court clarified further,
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[A] complaint must contain sufficient factual matter, accepted as true, to “state a claim
to relief that is plausible on its face.” [Citation]. A claim has facial plausibility when
the plaintiff pleads factual content that allows the court to draw the reasonable
inference that the defendant is liable for the misconduct alleged. [Citation]. The
plausibility standard is not akin to a “probability requirement,” but it asks for more than
a sheer possibility that a defendant has acted unlawfully. [Citation]. Where a complaint
pleads facts that are “merely consistent with” a defendant’s liability, it “stops short of
the line between possibility and plausibility of ‘entitlement to relief.’
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Iqbal, 556 U.S. at 679 (citations omitted). When factual allegations are well-pled, a court should
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assume their truth and determine whether the facts would make the plaintiff entitled to relief; legal
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conclusions are not entitled to the same assumption of truth. Id. The Court may grant leave to amend a
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complaint to the extent deficiencies of the complaint can be cured by an amendment. Lopez v. Smith,
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203 F.3d 1122, 1127-28 (9th Cir. 2000) (en banc).
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IV.
Allegations
Plaintiff asserts Quicken Loans Mortgage Services “is a provider of home loans receiving
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federal funding.” (Doc. 1 at 1) According to Plaintiff, “[a] proper appraisal of the property was never
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conducted as evidenced by the appraisal report,” and she contends resulted in a failure to identify a
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defective condition, where there was not “positive drainage (away from the dwelling).” (Id. at 1-2)
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She contends now “significant flooding event has caused financial, emotional, and physical hardship.”
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(Id. at 2)
Plaintiff contends the defendant “scheduled a trustee sale date without properly informing
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petitioner and while petitioner was made to think that a Deed in Lieu of foreclosure was still possible.”
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(Doc. 1 at 2) In addition, she asserts the defendant “was dual tracking petitioner by offering
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modification designed to fail while still posting the property as a foreclosure, which resulted in
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unwanted visitors to the home.” (Id. at 2)
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V.
Discussion and Analysis
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As an initial matter, the complaint does not make clear the basis for federal court jurisdiction.
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If Plaintiff is claiming diversity jurisdiction, she must allege facts to support this claim including the
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state of her residency and that of the defendant and the amount of monetary damages she believes she
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suffered as a consequence of the defendant’s action.
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In addition, the Court is not quite certain of the legal basis for the claims the Plaintiff seeks to
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raise against Quicken Loan Mortgage Services. It appears Plaintiff may be asserting that the
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defendant is liable for a violation of Cal. Civ. Code § 2923.6, which prohibits “dual tracking” by
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financial institutions that “continue to pursue foreclosure even while evaluating a borrower’s loan
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modification application.” See Rockridge Trust v. Wells Fargo, N.A., 985 F. Supp.2d 1110, 1149 (N.D.
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Cal. 2013). Specifically, Section 2923.6 provides in relevant part:
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If a borrower submits a complete application for a first lien loan modification offered
by, or through, the borrower's mortgage servicer, a mortgage servicer, mortgagee,
trustee, beneficiary, or authorized agent shall not record a notice of default or notice
of sale, or conduct a trustee’s sale, while the complete first lien loan modification
application is pending. A mortgage servicer, mortgagee, trustee, beneficiary, or
authorized agent shall not record a notice of default or notice of sale or conduct a
trustee’s sale until any of the following occurs:
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(1) The mortgage servicer makes a written determination that the borrower is
not eligible for a first lien loan modification, and any appeal period pursuant to
subdivision (d) has expired.
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(2) The borrower does not accept an offered first lien loan modification within
14 days of the offer.
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(3) The borrower accepts a written first lien loan modification, but defaults on,
or otherwise breaches the borrower’s obligations under, the first lien loan
modification.
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Cal. Civ. Code §2923.6(c). Notably, the anti-dual tracking provision is triggered by the borrower
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submitting a completed application for loan modification. Pursuant to Cal. Civ. Code § 2924.12, a
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plaintiff may seek injunctive relief for a material violation of Section 2923.6.
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The facts alleged are insufficient for the Court to determine whether the provision has been
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violated. Plaintiff fails to allege if or when she submitted a completed lien loan modification
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application and does not provide any information regarding the response by Defendant. Further, there
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is no information regarding when a notice of default or notice of sale was recorded by the mortgage
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servicer. Without additional facts, the Court is unable to find Plaintiff has alleged a violation of
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Section 2923.6.
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VI.
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Conclusion and Order
For the reasons set forth above, the Court is unable to find Plaintiff states a cognizable claim.
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However, the factual deficiencies may be able to be cured by amendment. See Noll v. Carlson, 809
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F.2d 1446, 1448-49 (9th Cir. 1987); see also Lopez, 203 F.3d at 1128 (dismissal of a pro se complaint
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without leave to amend for failure to state a claim is proper only where it is obvious that an
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opportunity to amend would be futile). Thus, Plaintiff may file a new complaint that alleges sufficient
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factual allegations to demonstrate the wrongful conduct of the defendant and how she believes this
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conduct caused her harm.
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Plaintiff is advised that an amended complaint supersedes the original complaint. Forsyth v.
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Humana, Inc., 114 F.3d 1467, 1474 (9th Cir. 1997); King v. Atiyeh, 814 F.2d 565, 567 (9th Cir. 1987).
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In addition, the amended complaint must be “complete in itself without reference to the prior or
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superseded pleading.” Local Rule 220. Once Plaintiff files an amended complaint, the original
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pleading no longer serves any function in the case. The amended complaint must bear the docket
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number assigned this case and must be labeled “First Amended Complaint.” Finally, Plaintiff is
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warned that “[a]ll causes of action alleged in an original complaint which are not alleged in an
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amended complaint are waived.” King v. Atiyeh, 814 F.2d 565, 567 (9th Cir. 1986) (citing London v.
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Coopers & Lybrand, 644 F.2d 811, 814 (9th Cir. 1981). Based upon the foregoing, the Court
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ORDERS:
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1.
Plaintiff’s motion to proceed in forma pauperis (Doc. 2) is GRANTED;
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2.
Plaintiff is granted thirty days from the date of service of this order to file an amended
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complaint that states a cognizable claim and which cures the deficiencies discussed in this order.
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If Plaintiff fails to comply with this order to file an amended complaint, the action may be
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dismissed for failure to prosecute and failure to obey the Court’s order.
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IT IS SO ORDERED.
Dated:
April 9, 2018
/s/ Jennifer L. Thurston
UNITED STATES MAGISTRATE JUDGE
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