Bank of New York Mellon v. City of Richmond, California et al
Filing
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ORDER by Judge Charles R. Breyer denying 55 Motion for Sanctions. (crblc1, COURT STAFF) (Filed on 1/15/2014)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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United States District Court
For the Northern District of California
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THE BANK OF NEW YORK MELLON (f/k/a
The Bank of New York) and THE BANK OF
NEW YORK MELLON TRUST COMPANY,
N.A. (f/k/a The Bank of New York Trust
Company, N.A.), as Trustees, et al.,
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No. C 13-03664 CRB
ORDER DENYING MOTION FOR
RULE 11 SANCTIONS
Plaintiffs,
v.
CITY OF RICHMOND, et al.,
Defendants.
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Defendants the City of Richmond, Richmond City Council, Mortgage Resolution Partners
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L.L.C. and Gordian Sword L.L.C. have filed a Motion for Rule 11 Sanctions, in which they argue
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that Plaintiffs The Bank of New York Mellon, The Bank of New York Mellon Trust Company, U.S.
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Bank National Association, Wilmington Trust Company, and Wilmington Trust, National
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Association violated Rule 11 because “[e]ven if there could have been any reasonable doubt as to
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the ripeness of Plaintiffs’ claims at the time Plaintiffs filed their Second Amended Complaint (and
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there should not have been), this Court’s ruling [in Wells Fargo Bank v. City of Richmond, No. 13-
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3663] resolved any such doubt and Plaintiffs should have dismissed their case.” Mot. (dkt. 55) at 1.
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The Court finds these matters suitable for resolution without oral argument, pursuant to Civil Local
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Rule 7-1(b), VACATES the hearing currently set for January 24, 2014, and DENIES the Motion.
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Rule 11 sanctions are reserved “for the rare and exceptional case where the action is clearly
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frivolous, legally unreasonable or without legal foundation, or brought for an improper purpose.”
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Operating Eng’rs Pension Trust v. A-C Co., 859 F.2d 1336, 1344 (9th Cir. 1988). The Court finds
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that the Second Amended Complaint in this case was neither frivolous nor filed for an improper
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purpose. See Townsend v. Holman Consulting Corp., 929 F.2d 1358, 1362 (9th Cir. 1990).
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Moreover, Plaintiffs’ opposition to dismissal was not inappropriate, both because it preserved
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Plaintiffs’ opportunity to appeal,1 and because it raised legitimate (if ultimately unpersuasive)
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arguments not raised in the Wells Fargo case. See, e.g., Order re MTD (dkt. 53) at 7 (“Plaintiffs also
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asserted during oral argument that although the city counsel has not yet approved the plan, the City
United States District Court
For the Northern District of California
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Manager’s letter to homeowners itself creates an injury, which makes the issue presently fit for
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determination.”). There is no basis for imposing sanctions here.
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IT IS SO ORDERED.
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Dated: January 15, 2014
CHARLES R. BREYER
UNITED STATES DISTRICT JUDGE
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Plaintiffs have indeed appealed the Order Granting Defendants’ Motion to Dismiss. See Notice
of Appeal (dkt. 64).
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