Horton et al v. California Credit Corp. Retirement Plan et al
Filing
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ORDER denying Plaintiffs' 78 Motion for Reconsideration re 77 Order and 74 Order on Motion for Summary Judgment. Motion for Summary Adjudication. Signed by Judge Irma E. Gonzalez on 1/11/2012. (jah). Modified on 1/12/2012 - Corrected spelling (jah).
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UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF CALIFORNIA
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MICHAEL HORTON, an individual;
CATHIE L. HORTON, an individual,
CASE NO. 09-cv-274 – IEG (NLS)
ORDER DENYING PLAINTIFFS’
MOTION FOR RECONSIDERATION
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Plaintiffs,
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vs.
[Doc. No. 78]
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CALIFORNIA CREDIT CORP.
RETIREMENT PLAN, an entity of unknown
form; FORECLOSURE SPECIALISTS,
INC., doing business as Zenith Trustee
Services, a California Corporation; DOES 110, inclusive,
Defendants.
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This is a mortgage case brought by Plaintiffs Michael and Cathie Horton for alleged
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violations of the Truth in Lending Act (“TILA”) and California’s Rosenthal Fair Debt Collection
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Practices Act (“RFDCPA”). Defendant California Credit Corp. Retirement Plan (“CCCRP”) is the
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only remaining Defendant. On December 7, 2011, the Court issued an order granting in part and
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denying in part the parties’ cross-motions for summary judgment. Specifically, the Court granted
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Plaintiffs’ motion for summary judgment as to: (1) count one of the first cause of action, seeking
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rescission under TILA; (2) the third cause of action, seeking to quiet title; and (3) the fourth cause
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of action for violations of the California’s unfair competition law. The Court granted Defendant’s
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motion for summary judgment as to: (1) count two of the first cause of action, seeking damages
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09cv274–IEG (NLS)
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under TILA; and (2) the second cause of action for violations of the RFDCPA. The Court denied
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the parties’ motions for summary judgment in all other respects. Finally, because the Court
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determined that Plaintiffs were entitled to a rescission and to quiet title, the Court ordered
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Defendant to provide the Court with an accounting of the outstanding balance on the loan and
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Plaintiffs to file any objections. On December 15, 2011, having received the parties’ supplemental
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briefing, the Court set the tender amount at $42,020.53 and ordered Plaintiffs to tender that amount
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into an escrow account by January 13, 2012. [Doc. No. 77.] The Court also denied Plaintiffs’
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request to order that the deposited funds remain in the escrow account until after the Court rules
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upon Plaintiffs’ forthcoming motion for award of attorney’s fees and costs. [Id.]
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On January 2, 2012, Plaintiffs filed a motion for reconsideration, contending the Court
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should reconsider two of the issues determined in the December 7, 2011 and December 15, 2011
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orders. Defendant filed a response on January 6, 2012, and Plaintiffs replied on January 9, 2012.
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Having considered the parties’ arguments, the Court DENIES the motion for reconsideration.
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LEGAL STANDARD
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As a general principle, “[r]econsideration is appropriate if the district court (1) is presented
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with newly discovered evidence, (2) committed clear error or the initial decision was manifestly
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unjust, or (3) if there is an intervening change in controlling law.” Sch. Dist. No. 1J v. ACandS,
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Inc., 5 F.3d 1255, 1263 (9th Cir. 1993). “There may also be other, highly unusual, circumstances
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warranting reconsideration.” Id.
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Rule 60(b) provides for reconsideration upon a showing of (1) mistake, inadvertence,
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surprise, or excusable neglect; (2) newly discovered evidence; (3) fraud; (4) a void judgment; (5) a
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satisfied or discharged judgment; or (6) “any other reason that justifies relief.” Fed. R. Civ. P.
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60(b); see also Fuller v. M.G. Jewelry, 950 F.2d 1437, 1442 (9th Cir. 1991).
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DISCUSSION
I.
TILA damages
Plaintiffs first contend the Court should reconsider its determination that Defendant is
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entitled to summary judgment on count two of the first cause of action, seeking damages under
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TILA. According to Plaintiffs, the Ninth Circuit’s decision in Semar v. Platte Valley Federal
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09cv274–IEG (NLS)
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Savings & Loan Association, 791 F.2d 699 (9th Cir. 1986), and the First Circuit’s decision in Belini
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v. Washington Mutual Bank, FA, 412 F.3d 17 (1st Cir. 2005), establish that where a creditor
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contests a consumer’s right of rescission, the creditor can still be held liable for wrongfully
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refusing to rescind when asked to do so by the consumer, even if the rescission was not automatic
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upon the consumer’s mailing of the notice of rescission.
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Plaintiffs have not shown that a valid reason exists for reconsideration on this ground. In
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ruling on this portion of Defendant’s motion for summary judgment, the Court relied on the Ninth
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Circuit’s decision in Yamamoto v. Bank of New York, cited by Defendant, where the Ninth Circuit
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held that the borrowers’ right to rescission is not automatic upon their mailing of the notice of
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rescission. See 329 F.3d 1167, 1172 (9th Cir. 2003). Rather, until the rescission is consented to by
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the lender or is granted by the Court, “‘the borrowers have only advanced a claim seeking
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rescission.’” Id. (quoting Large v. Conseco Fin. Serv. Corp., 292 F.3d 49, 54-55 (1st Cir. 2002)).
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At the time the Court ruled on the parties’ cross-motions for summary judgment, Plaintiffs failed
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to cite either Semar or Belini as mandating a result contrary to Yamamoto. Plaintiffs’ reliance on
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these decisions now does not constitute “newly discovered evidence” or “an intervening change in
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controlling law.” See Sch. Dist. No. 1J, 5 F.3d at 1263. Neither is the Court convinced that these
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decisions indicate that the Court committed “clear error” or that its prior decision was “manifestly
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unjust.” See id. Accordingly, Plaintiffs have failed to state a valid ground for reconsideration on
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this issue. See id.; see also Fed. R. Civ. P. 60(b).
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II.
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Keeping funds in the escrow account
Plaintiffs next contend the Court erred in denying their request to order that the tendered
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amount be kept in the escrow account pending the Court’s resolution of the upcoming motion for
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attorney’s fees and costs. Plaintiffs appear to contend that the Court’s prior order was manifestly
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unjust because nothing is preventing Defendant from liquidating and depleting its company’s
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assets after the withdrawal of the tender amount, thereby leaving Plaintiffs without recovery once
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the Court grants their motion for attorney’s fees and costs.
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Plaintiffs have not shown that they are entitled to reconsideration on this ground either.
Plaintiffs do not raise any “newly discovered evidence” or allege any “intervening change in
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controlling law.” See Sch. Dist. No. 1J, 5 F.3d at 1263. The Court is also not convinced that
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allowing Defendant to withdraw the tender amount from the escrow account was a “clear error” or
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will be “manifestly unjust” to Plaintiffs. See id. Rather, as Defendant points out, at this time, any
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potential offset by Plaintiffs against the tender amount is speculative because Defendant might
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also be entitled to attorney’s fees or costs. Accordingly, Plaintiffs have failed to state a valid
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ground for reconsideration on this issue as well. See id.; see also Fed. R. Civ. P. 60(b).
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CONCLUSION
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For the foregoing reasons, the Court DENIES Plaintiffs’ motion for reconsideration.
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IT IS SO ORDERED.
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Date: January 11, 2012
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IRMA E. GONZALEZ, Chief Judge
United States District Court
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