JPMorgan Chase Bank, National Association v. Velu et al

Filing 31

ORDER TO SHOW CAUSE. Show Cause Response due by 4/29/2013.. Signed by Magistrate Judge Jacqueline Scott Corley on 4/22/2013. (ahm, COURT STAFF) (Filed on 4/22/2013)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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Northern District of California

United States District Court

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JPMORGAN CHASE BANK, N.A.,
Plaintiff,

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Case No.: C-12-03429 SBA (JSC)
ORDER TO SHOW CAUSE

v.

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SATYA N. VELU; KAMALA K. VELU;
FRANCHISE TAX BOARD – STATE
OF CALIFORNIA; DEPARTMENT OF
TREASURY – INTERNAL REVENUE
SERVICE,
Defendants.

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Presently before the Court is Plaintiff’s Motion for Default Judgment by the Court as to

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Defendants Satya N. Velu, Kamala K. Velu, and the Franchise Tax Board for the State of California

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(“FTB”). (Dkt. No. 29.) The motion has been referred to the undersigned for a Report and

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Recommendation. Plaintiff’s motion seeks default judgment on its declaratory relief cause of action,

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which maintains that Plaintiff’s lien—the “WAMU Deed of Trust” between the Velus and

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Plaintiff—is senior to FTB’s tax lien even though FTB’s lien was recorded against the property first.

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However, Plaintiff does not cite to any law in support of its contention. Rather, Plaintiff simply

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asserts that such relief should be granted because “it is clear that the parties intended that the

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WAMU Deed of Trust would be the first priority lien against the Property.” (Dkt. No. 29-1 at 5.)

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The Court is unaware how such mutual intent between the Velus and Plaintiff would disrupt FTB’s

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first-recorded lien.

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In light of the foregoing, the Court hereby ORDERS Plaintiff to SHOW CAUSE, no later

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than April 29, 2013, why its second-recorded lien should be deemed the senior lien against the

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property. Plaintiff shall cite legal authority supporting its position. In addition, the Court hereby

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VACATES the hearing scheduled for April 25, 2013. The hearing shall now occur on May 9, 2013

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at 9:00.

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Northern District of California

United States District Court

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IT IS SO ORDERED.

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Dated: April 22, 2013
_________________________________
JACQUELINE SCOTT CORLEY
UNITED STATES MAGISTRATE JUDGE

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