Wells Fargo Bank, National Association et al v. City of Richmond, California et al

Filing 68

Supplemental Brief re 38 MOTION to Dismiss for Lack of Jurisdiction , 8 MOTION for Preliminary Injunction filed byCity of Richmond, California, Mortgage Resolution Partners LLC. (Related document(s) 38 , 8 ) (Kronland, Scott) (Filed on 9/11/2013)

1 STEPHEN P. BERZON (SBN 46540)
SCOTT A. KRONLAND (SBN 171693)
2 JONATHAN WEISSGLASS (SBN 185008)
3 ERIC P. BROWN (SBN 284245)
Altshuler Berzon LLP
4 177 Post Street, Suite 300
San Francisco, CA 94108
5 Tel: [phone]
Fax: [phone]
6 E-mail: [e-mail]
[e-mail]
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[e-mail]
[e-mail]
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9 Attorneys for Defendants City of Richmond and
Mortgage Resolution Partners LLC
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11 BRUCE REED GOODMILLER (SBN 121491)
City Attorney
12 CARLOS A. PRIVAT (SBN 197534)
Assistant City Attorney
13 CITY OF RICHMOND
450 Civic Center Plaza
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Richmond, CA 94804
15 Telephone: [phone]
Facsimile: [phone]
16 E-mail: [e-mail]
[e-mail]
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Attorneys for Defendant City of Richmond
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Attorney for Defendant
Mortgage Resolution Partners LLC

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION

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21 WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Trustee, et al.,
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Plaintiffs,

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WILLIAM A. FALIK (SBN 53499)
100 Tunnel Rd.
Berkeley, CA 94705
Tel: [phone]
Fax: [phone]
E-mail: [e-mail]

v.

25 CITY OF RICHMOND, CALIFORNIA, a
26 municipality, and MORTGAGE
RESOLUTION PARTNERS LLC,
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Defendants.
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Case No. CV-13-3663-CRB
DEFENDANTS’ SUPPLEMENTAL
MEMORANDUM RE: MOTION TO
DISMISS FOR LACK OF JURISDICTION
(DOC. 38) AND MOTION FOR
PRELIMINARY INJUNCTION (DOC. 8)
Date: Sept. 12, 2013
Time: 10:00 am
Place: Courtroom 6, 17th Floor
The Hon. Charles R. Breyer

Defs’ Suppl. Memo re Motion to Dismiss & Preliminary Injunction, Case No. CV-13-3663-CRB

DEFENDANTS’ SUPPLEMENTAL MEMORANDUM RE:
MOTION TO DISMISS FOR LACK OF JURISDICTION (DOC. 38)
AND MOTION FOR PRELIMINARY INJUNCTION (DOC. 8)

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At the September 10, 2013 meeting of the Richmond City Council, the following agenda

4 item was approved:
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I-2. HEAR a report from staff on Richmond CARES -- the Local Principal
Reduction Program, and DIRECT staff to: (1) to work to set up a Joint Powers
Authority (JPA) together with other interested municipalities, as a next step forward
in the development of this program; (2) to confirm that no loans will be acquired by
the City through eminent domain before coming back to the full City Council for a
vote; and (3) to continue working with MRP to resolve any remaining legal issues.1

9 As such, the legal status of this matter remains unchanged: The City of Richmond is exploring the
10 idea of acquiring underwater mortgage loans to reduce principal balances, but its City Council has
11 not adopted a resolution of necessity to authorize the use of eminent domain authority, or even held
12 a public hearing on whether to adopt a proposed resolution of necessity, or even given notice of
13 such a public hearing. Moreover, if a Joint Powers Authority is created with other interested
14 municipalities to further develop a principal reduction program, then it might be the JPA, as
15 opposed to the City, that would be exercising eminent domain authority, should such authority ever
16 be exercised.
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All that being so, this lawsuit was and remains a SLAPP suit that should be dismissed for

18 lack of jurisdiction.
19 Dated: September 11, 2013

Respectfully submitted,

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/s/ Scott A. Kronland
Scott A. Kronland

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Stephen P. Berzon
Scott A. Kronland
Jonathan Weissglass
Eric P. Brown
Altshuler Berzon LLP

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This agenda item was modified slightly before approval, to also require: 1) a monthly
status report from the JPA, and 2) City staff to report back to Council in 30 days regarding status,
including efforts to set up a JPA and to resolve remaining legal issues. There are no official
minutes of the meeting yet.
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Defs’ Suppl. Memo re Motion to Dismiss & Preliminary Injunction, Case No. CV-13-3663-CRB

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Attorneys for Defendants
City of Richmond and
Mortgage Resolution Partners LLC

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Bruce Reed Goodmiller
Carlos A. Privat
City of Richmond

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Attorneys for Defendant City of Richmond

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William A. Falik

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Attorney for Defendant
Mortgage Resolution Partners LLC

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Defs’ Suppl. Memo re Motion to Dismiss & Preliminary Injunction, Case No. CV-13-3663-CRB