Gold v. National Default Servicing Corporation et al
Filing
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Order (1) Denying Plaintiffs Ex Parte Application For Temporary Restraining Order; (2) Denying Plaintiffs Motion To Stay State Court Proceedings And Execution Of Unlawful Detainer; And (3) Denying Plaintiffs Motion For Removal And Consolidation Of Related State Court Case No. 37-2022-00042825-Cl-Ud-Ctl - denying 23 Motion to Expedite. Signed by Judge Janis L. Sammartino on 1/17/2023. (ave)
Case 3:22-cv-01232-JLS-AGS Document 30 Filed 01/17/23 PageID.1147 Page 1 of 8
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UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF CALIFORNIA
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MICHELLE GOLD, as Trustee of the
Michelle Gold Separate Property Trust
dated December 23, 2002,
v.
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Defendants.
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ORDER (1) DENYING PLAINTIFF’S
EX PARTE APPLICATION FOR
TEMPORARY RESTRAINING
ORDER; (2) DENYING
PLAINTIFF’S MOTION TO STAY
STATE COURT PROCEEDINGS
AND EXECUTION OF UNLAWFUL
DETAINER; AND (3) DENYING
PLAINTIFF’S MOTION FOR
REMOVAL AND CONSOLIDATION
OF RELATED STATE COURT CASE
NO. 37-2022-00042825-CL-UD-CTL
Plaintiff,
NATIONAL DEFAULT SERVICING
CORPORATION; U.S. BANK, NA,
successor trustee to Bank of America, NA,
as trustee, on behalf of the holders of the
WaMu Mortgage Pass-Through
Certificates WMALT, Series 2007-OA2;
SELECT PORTFOLIO SERVICING;
DOES 1–25; STEPHAN PAUL
NIEDNAGEL; DANIEL DEANS
NIEDNAGEL; and BIRDROCK HOME
MORTGAGE, LLC,
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Case No.: 22-CV-1232 JLS (AGS)
(ECF No. 23)
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Presently before the Court is a motion submitted by Plaintiff Michelle Gold, as
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Trustee of the Michelle Gold Separate Property Trust dated December 23, 2002
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(“Plaintiff”), captioned “Ex Parte Application for Order Shortening Time for Hearing on
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Plaintiff’s Request for TRO; Stay of State Court Proceedings and Execution of Unlawful
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Detainer; and Motion for Removal and Consolidation of Related State Court Case No. 371
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2022-00042825-CL-UD-CTL” (“App.,” ECF No. 23). The Court has interpreted the Ex
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Parte Application as three separate requests: an Application for a Temporary Restraining
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Order (“TRO”), a Motion to Stay State Court Proceedings and Execution of Unlawful
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Detainer, and a Motion for Removal and Consolidation of Related State Court Case No.
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37-2022-00042825-CL-UD-CTL. See Erickson v. Pardus, 551 U.S. 89, 94 (2007) (“A
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document filed pro se is ‘to be liberally construed.’” (quoting Estelle v. Gamble, 429 U.S.
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97, 106 (1976)). Defendants Stephan Paul Niednagel, Daniel Deans Niednagel, and Bird
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Rock Home Mortgage, LLC (“Bird Rock”) (collectively, the “Bird Rock Defendants”)
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filed an initial Opposition to Plaintiff’s Ex Parte Motion (“Opp’n,” ECF No. 24), as well
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as a supplemental opposition to Plaintiff’s Ex Parte Motion (“Opp’n Supp.,” ECF No. 26).
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Having reviewed the Parties’ arguments and the law, the Court DENIES Plaintiff’s
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Application for a Temporary Restraining Order, DENIES Plaintiff’s Motion to Stay State
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Court Proceedings and Execution of Unlawful Detainer, and DENIES Plaintiff’s Motion
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for Removal and Consolidation of Related State Court Case No. 37-2022-00042825-CL-
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UD-CTL.
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BACKGROUND
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This case concerns real property located at 3342 Randy Lane, Chula Vista,
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California 91908 (the “Property”). First Amended Complaint (“FAC,” ECF No. 19) ¶ 9.
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The Property is Plaintiff’s personal residence. Id. ¶ 9b. Plaintiff claims that Defendants
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National Default Servicing Corporation (“NDSC”), Select Portfolio Servicing (“SPS”),
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and U.S. Bank, NA, successor trustee to Bank of America, NA, as trustee, on behalf of the
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holders of the WaMu Mortgage Pass-Through Certificates WMALT, Series 2007-OA2
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(“USB”), illegally foreclosed on the Property, see id. ¶¶ 9a–z, which was then purchased
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by the Bird Rock Defendants at a public non-judicial foreclosure sale, see id. ¶¶ 9y–z.
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Plaintiff’s FAC asserts causes of action for cancellation of written instruments, fraudulent
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transfer, violation of the Real Estate Settlement Procedures Act (“RESPA”), and quiet title.
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Id. ¶¶ 12–24.
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Plaintiff initiated this action in state court, but Defendants NDSC, SPS, and USB
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removed the case to federal court on the basis of federal question jurisdiction. See Notice
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of Removal (ECF No. 1) ¶¶ 3–4. Defendants NDSC, SPS, and USB submitted a Motion
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to Dismiss Plaintiff’s initial Complaint. See ECF No. 2. 1 Plaintiff then submitted an Ex
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Parte Application for Temporary Restraining Order and Order to Show Cause re:
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Preliminary Injunction. See ECF No. 4. On October 5, 2022, the Court denied Plaintiff’s
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first request for a TRO and granted Defendants NDSC, SPS, and USB’s Motion to Dismiss
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while affording Plaintiff leave to amend the Complaint. See ECF No. 16. Plaintiff filed
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the FAC on November 5, 2022, see FAC, and followed it with the instant Ex Parte
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Application on December 13, 2022, see App.
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PLAINTIFF’S APPLICATION FOR TEMPORARY RESTRAINING ORDER
I.
Legal Standard
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Federal Rule of Civil Procedure 65(b) governs the issuance of a TRO. The standard
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for a TRO is identical to the standard for a preliminary injunction. See Stuhlbarg Int’l
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Sales Co. v. John D. Brush & Co., 240 F.3d 832, 839 n.7 (9th Cir. 2001). To obtain either
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a TRO or a preliminary injunction, the moving party must show: (1) a likelihood of success
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on the merits; (2) a likelihood of irreparable harm to the moving party in the absence of
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preliminary relief; (3) that the balance of equities tips in favor of the moving party; and (4)
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that an injunction is in the public interest. Winter v. Nat. Res. Def. Council, Inc., 555 U.S.
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7, 20 (2008).
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Although a plaintiff seeking a TRO or preliminary injunction must make a showing
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on each element, the Ninth Circuit employs a “version of the sliding scale” approach where
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“a stronger showing of one element may offset a weaker showing of another.” All. for the
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Wild Rockies v. Cottrell, 632 F.3d 1127, 1131–35 (9th Cir. 2011). Under this approach, a
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court may issue a TRO or preliminary injunction where there are “serious questions going
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to the merits and a balance of hardships that tips sharply towards the plaintiff . . . , so long
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Pin citations refer to the CM/ECF page numbers electronically stamped at the top of each page.
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as the plaintiff also shows that there is a likelihood of irreparable injury and that the
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injunction is in the public interest.” Id. at 1135 (internal quotation marks omitted).
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Generally, a TRO is considered “an extraordinary remedy that may only be awarded upon
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a clear showing that the plaintiff is entitled to such relief.” Winter, 555 U.S. at 22. The
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moving party has the burden of persuasion. Hill v. McDonough, 547 U.S. 573, 584 (2006).
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II.
Analysis
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Plaintiff filed the Ex Parte Application on December 13, 2022. See App. She claims
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that the requested relief is necessary because, at the time of filing, Bird Rock had obtained
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an order moving a trial date in a related state court case to December 14, 2022, in an alleged
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attempt to “avoid the Plaintiff’s pending State Court Motion for Removal and
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Consolidation with this case and take unlawful possession of [the Property] solely to further
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prejudice Plaintiff’s legal rights pending before this Federal Court.” Id. at 2. Plaintiff
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requests a TRO “prohibiting any further transfers of [the Property]” so that she may
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“enforce her recission” of a loan she received from VirtualBank in 2006 and thereby
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“obtain legal title and right to possession of [the Property].” See id. at 2–3.
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Rather than explain to the Court why a TRO is justified in this case, Plaintiff merely
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cites to an “Ex-Parte Application for Order Shortening Time” filed in the state court case,
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claiming it is evidence of irreparable injury. Id. at 4. Having reviewed the document, its
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relevancy is utterly unclear to the Court. Accordingly, Plaintiff has failed to address even
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one of the elements required for the issuance of a TRO. On that basis alone, the Court has
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cause to deny Plaintiff’s TRO Application. Nevertheless, the Court will briefly explain
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why a TRO is inappropriate here.
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First, Plaintiff has failed to demonstrate a likelihood of success. The allegations in
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the FAC are essentially the same as the allegations in the initial Complaint, which was
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ultimately dismissed for failure to state a claim. Plaintiff alleges that because Chase was
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the owner of the Deed of Trust (“DOT”), the assignment of the DOT to NDSC from USB
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was invalid, and NDSC therefore had no authority to foreclose on the Property. FAC ¶ 9a–
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z; see also ECF No. 1 at 7–8 (asserting same claims in Plaintiff’s initial Complaint). The
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Court has already addressed the numerous inaccuracies in this argument, and nothing in
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the FAC convinces the Court that Plaintiff is correct this time around.
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Second, Plaintiff has failed to show irreparable harm. The Bird Rock Defendants
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have offered convincing evidence that Plaintiff transferred her interest in the Property to
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her daughter in 2019, and that there have been no transfers since. See ECF No. 22-2 at 97–
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100. Consequently, any irreparable injury stemming from loss of the Property would
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apparently fall on Plaintiff’s daughter. Moreover, Plaintiff’s decision to wait until the last
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moment to request a TRO seriously undermines her position. “Delay in seeking injunctive
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relief can imply a lack of urgency and irreparable harm, and weighs against the propriety
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of such relief.” Thomas v. Deutsche Bank Nat. Tr., No. C 12-00472 CRB, 2012 WL
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821973, at *3 (N.D. Cal. Mar. 9, 2012) (citing Miller ex rel. NLRB v. Cal. Pac. Med. Ctr.,
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991 F.2d 536, 544 (9th Cir.1993); Lydo Enters. v. City of Las Vegas, 745 F.2d 1211, 1213
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(9th Cir. 1984)). Plaintiff submitted the instant application for a TRO one day before the
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trial date that Plaintiff moved the Court to stay. As ruling on Plaintiff’s application in less
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than one day was simply impossible, it is not clear that the Court could at this juncture
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afford Plaintiff meaningful relief. As the Court noted in its order denying Plaintiff’s first
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request for a TRO, Plaintiff has been less than prompt in requesting relief. See ECF No.
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16 at 24–25.
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proceedings had been initiated, see ECF No. 11-2 at 62; ECF No. 1 at 6, and she then
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waited several months, until after the Property had already been sold, before submitting
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her first request for a TRO, see generally ECF No. 4. Now, Plaintiff rushes back to this
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Court on the eve of a hearing date scheduled by a state court clerk in a state court
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proceeding. See ECF No. 23 at 15. Not only does this delay weigh against issuing a TRO,
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but also Plaintiff fails to explain how or why an apparent scheduling snafu requires the
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intervention of this Court.
Her initial Complaint came three years after non-judicial foreclosure
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Third, the Court again finds that the balance of hardships tips in Defendants’ favor.
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Foreclosure proceedings were initiated several years ago as the result of Plaintiff’s default,
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and Plaintiff has yet to put forth any evidence that she made any contractually due
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payments over that period. See generally FAC. As the Court stated in its previous order
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denying Plaintiff’s request for a TRO, “[g]iven such circumstances, granting an injunction
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at this stage of the foreclosure proceedings on the basis of Plaintiff’s current allegations
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would impose inequitable costs and unjustified delay on Defendants.” See Wilson v. Wells
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Fargo Bank, No. C 11-03394 CRB, 2011 WL 3443635, at *3 (N.D. Cal. Aug. 5, 2011)
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(“Plaintiffs complain loudly of alleged improprieties on Defendants’ part, but they ignore
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that it was their default that put them in their current predicament. Further, equity does not
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favor allowing Plaintiffs to avoid foreclosure having ceased making payments of any kind
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to anyone.”); Herrejon v. Ocwen Loan Servicing, LLC, 980 F. Supp. 2d 1186, 1210 (E.D.
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Cal. 2013) (“[T]he balance of equities weighs in defendants’ favor as the record suggests
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that plaintiffs may have unauthorized access to the property without payment of
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outstanding amounts owed and seek to delay foreclosure to extend their possession of the
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property.”); Haffeman v. Wells Fargo Bank, N.A., No. 12CV00046 BTM WVG, 2012 WL
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827034, at *5 (S.D. Cal. Mar. 9, 2012) (“Defendant . . . has not collected mortgage
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payments on the Property for over a year and a half. Thus, the balance of the equities does
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not tip sharply in favor of Plaintiffs.”).
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Finally, “[w]ithout a likelihood of success on the merits and with the equities
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balanced against [Plaintiff], issuing a preliminary injunction to stop the foreclosure goes
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against the public interest of affording relief to those deserving security on a defaulted
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loan.” Wilson, 2011 WL 3443635, at *3.
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In sum, Plaintiff has again failed to meet any of the four elements required for the
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Court to issue a TRO and has therefore failed to satisfy either of the tests necessary for the
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issuance of a TRO in the Ninth Circuit. For this reason, the Court DENIES Plaintiff’s
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TRO Application.
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///
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MOTION TO STAY STATE COURT PROCEEDINGS AND EXECUTION OF
UNLAWFUL DETAINER
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Plaintiff next asks the Court to stay the proceedings in the unlawful detainer action
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that Bird Rock initiated against Plaintiff and her daughter in state court. The Court is not
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convinced that such a stay is appropriate.
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As the Bird Rock Defendants note, the Anti-Injunction Act (the “Act”) “prevents a
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federal court from enjoining the ‘proceedings in a State court except as expressly
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authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect
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or effectuate its judgments.” Sandpiper Vill. Condo. Ass’n, Inc. v. Louisiana-Pac. Corp.,
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428 F.3d 831, 842 (9th Cir. 2005) (quoting 28 U.S.C. § 2283); Opp’n at 2. “Rooted firmly
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in constitutional principles, the Act is designed to prevent friction between federal and state
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courts by barring federal intervention in all but the narrowest of circumstances.” Sandpiper
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Vill. Condo. Ass’n, Inc., 428 F.3d at 842. “Doubts as to the appropriateness of an injunction
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should be ‘resolved in favor of permitting the state courts to proceed in an orderly fashion
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to finally determine the controversy.’” Bechtel Petroleum, Inc. v. Webster, 796 F.2d 252,
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253 (9th Cir. 1986) (quoting Vendo Co. v. Lektra-Vend Corp., 433 U.S. 623, 630 (1977)).
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Plaintiff has not alleged that any of the exceptions to the Act are applicable here.
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See generally App. Moreover, the Court is not aware of any act of Congress that would
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permit it to stay the state court proceedings, nor is there any reason to believe that a stay
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would be necessary in aid of this Court’s jurisdiction or to protect or effectuate its as-yet-
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unissued judgment. Accordingly, the Court DENIES Plaintiff’s Motion to Stay State
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Court Proceedings and Execution of Unlawful Detainer.
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PLAINTIFF’S MOTION FOR REMOVAL AND CONSOLIDATION OF
RELATED STATE COURT CASE NO. 37-2022-00042825-CL-UD-CTL
Plaintiff’s last request is for the Court to remove Bird Rock’s state court action to
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federal court and consolidate it with the instant action.
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procedurally improper. First, 28 U.S.C. § 1441 only confers removal power on the
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defendant or defendants in a state court case. See 28 U.S.C. § 1441(a) (“Except as
Doing so, however, would be
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otherwise expressly provided by Act of Congress, any civil action brought in a State court
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of which the district courts of the United States have original jurisdiction, may be removed
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by the defendant or the defendants, to the district court of the United States for the district
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and division embracing the place where such action is pending.”). Second, under 28 U.S.C.
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§ 1446(a):
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A defendant or defendants desiring to remove any civil action
from a State court shall file in the district court of the United
State for the district and division within which such action is
pending a notice of removal signed pursuant to Rule 11 of the
Federal Rules of Civil Procedure and containing a short and
plaint statement of the grounds for removal, together with a copy
of all process, pleadings, and orders served upon such defendant
or defendants in such action.
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If Plaintiff would like to remove the state court action to federal court, she must comply
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with the procedural requirements established in 28 U.S.C. § 1446(a), as well as any other
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applicable requirements. The Court has no authority to remove the state court action on
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her behalf. See Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994)
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(“Federal courts are courts of limited jurisdiction.”); Quick Korner Mkt. v. U.S. Dep’t of
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Agric., Food & Nutrition Serv., 180 F. Supp. 3d 683, 688 (S.D. Cal. 2016) (“[Federal
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courts] possess only that power authorized by the Constitution and conferred by
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Congress.”). Consequently, the Court DENIES Plaintiff’s Motion for Removal and
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Consolidation of Related State Court Case No. 37-2022-00042825-CL-UD-CTL.
CONCLUSION
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In light of the foregoing, the Court DENIES Plaintiff’s Ex Parte Application (ECF
No. 23) in its entirety.
IT IS SO ORDERED.
Dated: January 17, 2023
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