Centeno v. OneWest Bank et al

Filing 12

ORDER RE: MOTION TO DISMISS; REFERRING CASE TO ADR UNIT FOR ASSESSMENT TELEPHONE CONFERENCE (Illston, Susan) (Filed on 12/19/2011)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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SALVADOR CENTENO,

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United States District Court
For the Northern District of California

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No. C 11-05480 SI

Plaintiff,

ORDER RE: MOTION TO DISMISS;
REFERRING CASE TO ADR UNIT FOR
ASSESSMENT TELEPHONE
CONFERENCE

v.
ONEWEST BANK et al.,
Defendants.

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On September 9, 2011, plaintiff filed a complaint against defendants OneWest Bank and

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Mortgage Electronic Registration Systems, Inc. in the Superior Court of California, County of Alameda.

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Plaintiff alleges that defendants engaged in a variety of unfair and fraudulent behavior with respect to

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a mortgage loan initiated in 2006. Defendants thereafter removed this case to this Court in accordance

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with 12 U.S.C. § 1331. See Doc. 1 at 2.

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On November 17, 2011, defendants filed a motion to dismiss plaintiff’s complaint. A hearing

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is scheduled for the motion on December 27, 2011. The hearing set for December 27, 2011 is hereby

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VACATED. Pursuant to Civil Local Rule 16-8 and ADR Local Rule 2-3, the Court refers this

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foreclosure-related action to the Alternative Dispute Resolution (ADR) Unit for a telephone conference

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to assess this case’s suitability for mediation or a settlement conference. Plaintiffs and defendants’

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counsel shall participate in a telephone conference, to be scheduled by the ADR Unit as soon as possible

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but no later than January 6, 2012.

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Plaintiff’s and defendants’ counsel shall be prepared to discuss the following subjects:
(1)

Identification and description of claims and alleged defects in loan
documents.

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(2)

Prospects for loan modification.

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(3)

Prospects for settlement.

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The parties need not submit written materials to the ADR Unit for the telephone
conference.
In preparation for the telephone conference, plaintiff shall do the following:

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(1)

Review relevant loan documents and investigate the claims to
determine whether they have merit.

(2)

If plaintiff is seeking a loan modification to resolve all or some of the
claims, plaintiff shall prepare a current, accurate financial statement
and gather all of the information and documents customarily needed to
support a loan modification request. Further, plaintiff shall
immediately notify defendants’ counsel of the request for a loan
modification.

(3)

Provide counsel for defendants with information necessary to evaluate
the prospects for loan modification, in the form of a financial
statement, worksheet or application customarily used by financial
institutions.

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United States District Court
For the Northern District of California

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In preparation for the telephone conference, counsel for defendants shall do the
following.
(1)

If defendants are unable or unwilling to do a loan modification after
receiving notice of plaintiff’s request, counsel for defendants shall
promptly notify plaintiff to that effect.

(2)

Arrange for a representative of each defendant with full settlement
authority to participate in the telephone conference.

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The ADR Unit will notify the parties of the date and time the telephone conference

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will be held. After the telephone conference, the ADR Unit will advise the Court of its

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recommendation for further ADR proceedings. The Court will not reset defendants’ motion

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to dismiss for hearing until after it receives the recommendations from the ADR Unit.

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IT IS SO ORDERED.
Dated: December 19, 2011
SUSAN ILLSTON
United States District Judge

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