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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1 2 3 4 5 6 7 IN THE UNITED STATES DISTRICT COURT 8 FOR THE NORTHERN DISTRICT OF CALIFORNIA 9 10 Northern District of California United States District Court 11 12 13 JPMORGAN CHASE BANK, N.A., Plaintiff, 14 15 Case No.: C-12-03429 SBA (JSC) ORDER TO SHOW CAUSE v. 16 17 18 19 20 SATYA N. VELU; KAMALA K. VELU; FRANCHISE TAX BOARD – STATE OF CALIFORNIA; DEPARTMENT OF TREASURY – INTERNAL REVENUE SERVICE, Defendants. 21 22 Presently before the Court is Plaintiff’s Motion for Default Judgment by the Court as to 23 Defendants Satya N. Velu, Kamala K. Velu, and the Franchise Tax Board for the State of California 24 (“FTB”). (Dkt. No. 29.) The motion has been referred to the undersigned for a Report and 25 Recommendation. Plaintiff’s motion seeks default judgment on its declaratory relief cause of action, 26 which maintains that Plaintiff’s lien—the “WAMU Deed of Trust” between the Velus and 27 Plaintiff—is senior to FTB’s tax lien even though FTB’s lien was recorded against the property first. 28 However, Plaintiff does not cite to any law in support of its contention. Rather, Plaintiff simply 1 asserts that such relief should be granted because “it is clear that the parties intended that the 2 WAMU Deed of Trust would be the first priority lien against the Property.” (Dkt. No. 29-1 at 5.) 3 The Court is unaware how such mutual intent between the Velus and Plaintiff would disrupt FTB’s 4 first-recorded lien. 5 In light of the foregoing, the Court hereby ORDERS Plaintiff to SHOW CAUSE, no later 6 than April 29, 2013, why its second-recorded lien should be deemed the senior lien against the 7 property. Plaintiff shall cite legal authority supporting its position. In addition, the Court hereby 8 VACATES the hearing scheduled for April 25, 2013. The hearing shall now occur on May 9, 2013 9 at 9:00. 10 Northern District of California United States District Court 11 IT IS SO ORDERED. 12 13 Dated: April 22, 2013 _________________________________ JACQUELINE SCOTT CORLEY UNITED STATES MAGISTRATE JUDGE 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2

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