Snyder v. Bank of America, N.A. et al
Filing
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ORDER by Magistrate Judge Jacqueline Scott Corley denying 51 Motion to Consolidate Cases. (ahm, COURT STAFF) (Filed on 6/28/2016)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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PAMELA SNYDER,
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Plaintiff,
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ORDER DENYING PLAINTIFF’S
MOTION TO CONSOLIDATE
v.
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NATIONSTAR MORTGAGE LLC,
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Re: Dkt. No. 46
Defendant.
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United States District Court
Northern District of California
Case No. 15-cv-03049-JSC
PAMELA SNYDER,
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Case No. 15-cv-04228-EDL
Plaintiff,
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v.
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Re: Dkt. No. 51
BANK OF AMERICA, N.A., et al.,
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Defendants.
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INTRODUCTION
Now pending before the Court is the motion of Plaintiff Pamela Snyder (“Plaintiff”) to
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consolidate actions pursuant to Federal Rule of Civil Procedure 42. (Dkt. No. 46.1) Plaintiff has
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two civil actions pending in this District, each involving a different property she owns. One action
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is against Defendant Nationstar Mortgage LLC (“Nationstar”), the other against both Nationstar
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and Defendant Bank of America, N.A. (“Bank of America”). After carefully considering the
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arguments and briefing submitted, the Court concludes that oral argument is unnecessary, see Civ.
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L.R. 7-1(b), and DENIES Plaintiff’s Motion. Plaintiff has not established that there are any
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common questions of fact or law that justify consolidating her two cases. Additionally,
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Unless otherwise noted, record citations are to material in the Electronic Case File (“ECF”) for
this case (Case No. 15-cv-03049-JSC); pinpoint citations are to the ECF-generated page numbers
at the top of the documents.
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consolidation would likely cause jury confusion and prejudice to Nationstar, would not promote
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judicial economy, and would result in undue delay to this suit.
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BACKGROUND
Plaintiff’s first action was filed on June 30, 2015 and involves a residential mortgage loan
for Plaintiff’s real property located at 2548-2550 Sutter Street, San Francisco, California 94115
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(Case No. 3:15-cv-03049-JSC) (“Sutter Street Suit”). The Court discussed the factual background
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of this case in a previous order and incorporates that discussion here. (See Dkt. No. 30 at 1-4.)
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Plaintiff filed the operative Second Amended Complaint (“Sutter Street SAC”) on November 29,
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2015, alleging violations of (1) California Civil Code § 2954; (2) the Fair Credit Reporting Act, 15
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U.S.C. § 1681s-2(b); (3) California Civil Code §§ 1788.11(d) and (e); and (4) the Unfair Business
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United States District Court
Northern District of California
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Practices Act, Cal. Bus. & Prof. Code §§ 17200-17210. (Dkt. No. 33 at 1.) The parties engaged
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in written discovery and attended mediation in April 2016. (Dkt. No. 39; see also Dkt. No. 47 at
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15.) Trial is scheduled to commence on January 17, 2017. (Dkt. No. 39 at 2.)
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The second action, pending before Magistrate Judge Laporte, was filed on September 17,
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2015 and involves a loan modification for Plaintiff’s real property located at 811 Page Street, San
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Francisco, California 91117 (Case No. 3:15-cv-04228-EDL) (“Page Street Suit”). Plaintiff asserts
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claims against two defendants: Nationstar and Bank of America. Judge Laporte previously
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discussed the factual background of that case in a previous order granting a motion to dismiss; the
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Court incorporates Judge Laporte’s discussion here. (See Page Street Suit, Dkt. No. 46 at 2-4.)
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Plaintiff filed the operative Third Amended Complaint (“Page Street TAC”) on March 15, 2016,
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alleging causes of action for: (1) fraud against Bank of America; (2) and (5) negligent
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misrepresentation against Bank of America; (3) and (4) violation of California Civil Code §
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2923.7 against Bank of America; (6) violation of California Civil Code § 2924.11 against
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Nationstar; and (7) violation of 15 U.S.C. § 1692e, the Fair Debt Collection Practices Act, against
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Nationstar. (Page Street Suit, Dkt. No. 47 at 1, 15-29.) In the Page Street Suit, the parties have
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not begun discovery, as the parties had previously engaged in three separate rounds of briefing to
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dismiss Plaintiff’s various complaints. (Page Street Suit, Dkt. Nos. 8, 19, 31.) The parties are
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scheduled to have a case management conference with Judge Laporte on July 6, 2016. (Page
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Street Suit, Dkt. No. 50.) There is no trial date.
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On May 23, 2016, Plaintiff filed a motion to consolidate her two pending actions pursuant
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to Federal Rule of Civil Procedure 42. (Dkt. No. 46.) Nationstar filed an opposition to the
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motion, while Bank of America did not. (Dkt. Nos. 47, 53.)
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LEGAL STANDARD
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Federal Rule of Civil Procedure 42 governs consolidation of cases. Rule 42(a) provides, in
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relevant part, that if “actions before the court involve a common question of law or fact” then “the
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court may: (1) join for hearing or trial any or all matters at issue in the actions; (2) consolidate the
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actions; or (3) issue any other orders to avoid unnecessary cost or delay.”
United States District Court
Northern District of California
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Under Rule 42, “[t]he district court has broad discretion [] to consolidate cases pending in
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the same district.” Inv’rs Research Co. v. U.S. Dist. Court for Cent. Dist. of California, 877 F.2d
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777, 777 (9th Cir. 1989). In determining whether consolidation is appropriate, the court “weighs
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the saving of time and effort consolidation would produce against any inconvenience, delay, or
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expense that it would cause.” Huene v. United States, 743 F.2d 703, 704 (9th Cir. 1984). Even if
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a common question exists, consolidation is not appropriate where it results in “inefficiency,
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inconvenience, or unfair prejudice to a party.” E.E.O.C. v. HBE Corp., 135 F.3d 543, 551 (8th
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Cir. 1998) (citing Fed. R. Civ. P. 42(b)). The party seeking consolidation bears the burden of
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demonstrating that convenience and judicial economy would result from consolidation. Wright v.
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United States, No. C 92-1290 BAC, 1993 WL 313040, at *1 (N.D. Cal. Aug. 6, 1993).
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DISCUSSION
Consolidation is not warranted. As discussed below, Plaintiff has not established that there
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are any common questions of fact or law that justify consolidating her two cases; this alone
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justifies denying her motion to consolidate. Moreover, each of the other factors that courts
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typically consider—jury confusion and prejudice, judicial economy, and undue delay—weighs
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against consolidation as well.
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I.
Common Questions of Fact or Law
There is no dispute that Plaintiff’s two actions do not contain common questions of law, as
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both actions allege different statutory violations requiring different statutory analyses. (Compare
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Sutter Street SAC at 1, with Page Street TAC at 1.) Plaintiff concedes this point, arguing only that
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the two actions contain purported common questions of fact. (Dkt. No. 46 at 8; Dkt. No. 52 at 3.)
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Plaintiff argues that common questions of fact exist with respect to the alleged damage to
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her credit score as a result of Defendants’ reporting of her credit in both cases. (Dkt. No. 46 at 7;
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Dkt. No. 52 at 2.) Nationstar, on the other hand, argues that the actions are too different to warrant
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consolidation. (Dkt. No. 47 at 11-12.) According to Nationstar, the differences include that: (1)
Plaintiff’s two actions involve “different and separate loans that were obtained in separate months
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United States District Court
Northern District of California
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and which are secured by two different pieces of property” (id. at 11 (emphasis in original)); (2)
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the initial service providers for each loan were different, with Aurora serving as the initial service
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provider for the Page Street property and Bank of America serving as the initial service provider
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for the Sutter Street property (id.); and (3) the Sutter Street Suit pertains to the creation of an
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escrow account whereas the Page Street suit relates to a loan modification and appeal (id. at 8-9).
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The Court finds that Plaintiff’s two suits do not contain sufficient common questions of
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fact. Indeed, were Plaintiff’s argument accepted, any and all cases that allegedly damaged her
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credit score—regardless of the nature of those cases—could be properly consolidated. This is not
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the law. Accordingly, because Plaintiff has not met this threshold requirement, Plaintiff’s motion
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to consolidate must be denied.
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II.
Jury Confusion and Prejudice
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The Court also finds that factual distinctions between the two cases, along with the
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addition of Bank of America as a defendant in the Page Street Suit, will cause jury confusion and
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that this confusion outweighs any potential benefits consolidation would achieve. Consolidation
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will require the jury to weave back and forth between the two actions, each involving a different
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loan with different key players, different factual scenarios and supporting evidence, and different
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statutory violations. Under these circumstances, the risk of jury confusion and prejudice to
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Defendants weighs against consolidation of Plaintiff’s two actions. See, e.g., Applied Materials,
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Inc. v. Advanced Semiconductor Materials Am., Inc., No. C 93-20843(RMW), 1994 WL
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16780779, at *2 (N.D. Cal. Apr. 19, 1994) (finding that requiring the jury to understand different
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technologies would increase the likelihood of confusion, lengthen the trial, and invite juror
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boredom, and thus the “likelihood of jury confusion outweighs any efficiency that might be
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achieved through consolidation”); Sw. Marine, Inc. v. Triple A Mach. Shop, Inc., 720 F. Supp.
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805, 807 (N.D. Cal. 1989) (finding likelihood of jury confusion where two actions “[did] not state
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the same causes of action” and “[t]he facts necessary to prove the claims in the respective actions
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are not in common”).
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III.
Judicial Economy
Plaintiff argues that “consolidation would promote judicial economy because the court
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United States District Court
Northern District of California
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could combine the issues for trial and thereby avoid the necessity for two trials on substantially
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similar issues.” (Dkt. No. 46-3 at 10.) However, the legal causes of action and the factual
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scenarios in the two actions are completely different and therefore there is no overlap of issues to
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be tried. Thus, consolidation would not promote judicial economy. See, e.g., Sw. Marine, Inc.,
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720 F. Supp. at 807 (finding that, where there were no common issues of fact or law, pursuing the
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claims in two separate actions “will not involve a substantial duplication of effort”). This factor
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weighs against consolidation.
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IV.
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Unnecessary Delay
A court may deny consolidation where two cases are at different stages of preparedness for
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trial. See, e.g., Collins v. City & Cty. of San Francisco, No. 13-CV-03456-MEJ, 2014 WL
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5422177, at *3 (N.D. Cal. Oct. 24, 2014). The two actions here are at completely different stages
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of litigation. (Dkt. No. 47 at 15; Dkt. No. 52 at 4-5.) In the Sutter Street Suit, the parties have
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completed written discovery, participated in mediation, and Nationstar is prepared to move
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forward with depositions and to seek summary judgment. (Dkt. No. 47 at 15.) Moreover, the
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Court has already set a trial date for January 17, 2017. (Id.) In contrast, in the Page Street Suit,
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the parties—having engaged in three rounds of briefing to dismiss Plaintiff’s various complaints—
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have not begun any discovery and are scheduled to hold a second case management conference
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with Judge Laporte on July 6, 2016. (Dkt. No. 50.) No trial date has been set.
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Plaintiff nonetheless argues that consolidation would benefit Nationstar by allowing it to
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litigate both cases in a single trial. But Nationstar apparently does not believe it is much of a
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benefit because it opposes consolidation; thus, this is not a sufficient reason for consolidation,
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especially given the different causes of action, different factual scenarios, and different witnesses.
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The resultant undue delay to the trial schedule in the Sutter Street Suit weighs against
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consolidation.
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CONCLUSION
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For the reasons explained above, Plaintiff’s motion to consolidate is DENIED.
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This Order disposes of Docket No. 46 and Page Street Suit, Docket No. 51.
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United States District Court
Northern District of California
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IT IS SO ORDERED.
Dated: June 28, 2016
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JACQUELINE SCOTT CORLEY
United States Magistrate Judge
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