Buchanan v. Gandhi

District Court, D. Arizona·Decided May 24, 2024·No. 2:22-cv-01482·Unknown

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 John Clark Buchanan, II, No. CV-22-01482-PHX-SMB

10 Plaintiff, ORDER

11 v.

12 Randhir Ghandi, et al.,

13 Defendants.

14 15 Pending before the Court is Defendant Bank of America N.A.’s Motion to Dismiss 16 Plaintiff’s Second Amended Complaint (“SAC”) (Doc. 81). Finding that oral argument is 17 not necessary to resolve the pending motions and having considered the parties’ briefing 18 and relevant case law, the Court will grant the Motion. 19 I. FACTUAL BACKGROUND 20 The Court set forth this case’s factual background in its previous Order denying a 21 Temporary Restraining Order (“TRO”). (See Doc. 76.) For ease of reference, the Court 22 now repeats that background here. 23 On July 26, 2005, Plaintiff and Bank of America, N.A. (“BANA”) executed a 24 Promissory Note titled “Bank of America Equity Maximizer Agreement and Disclosure 25 Statement” (“Loan Agreement”), which detailed Plaintiff’s $150,000 credit line to 26 purchase the property in question. (See Docs. 9 at 3; 9-1 at 2–3, 9.) The Promissory Note 27 was secured by a Deed of Trust. (Docs. 9 at 3; 9-2 at 7.) The Deed of Trust was signed by 28 Plaintiff and Theresa Buchanan. (Docs. 9 at 3; 9-2 at 2.) On August 15, 2005, the Deed 1 was recorded in the Pinal County Recorder’s Office as Instrument No. 2005-104177. 2 (Docs. 9 at 3; 9-2 at 2.) BANA executed a Notice of Substitution of Trustee on August 10, 3 2016, naming Quality Loan Service Corporation as the Substitute Trustee under the Deed 4 of Trust. (Docs. 9 at 3; 9-3 at 2.) BANA recorded the Notice of Substitution of Trustee 5 with the Pinal County Recorder’s Office. (Docs. 9 at 3; 9-3 at 2.) 6 On December 27, 2019, BANA assigned all interests in the property to the 7 beneficiary through its servicing agent, Defendant Select Portfolio Servicing, Inc. (“SPS”). 8 (Docs. 9 at 3–4; 9-4 at 2.) Plaintiff made timely payments under the Loan Agreement for 9 eleven years, ceased making regular and timely payments in 2016, and stopped making 10 payments entirely in 2017. (See Doc. 54 at 17.) Defendants assert that between 2016 and 11 2021, either BANA or SPS offered loan assistance to Plaintiff. (See Docs. 9 at 4; 9-5; 9- 12 6.) Defendants claim that Plaintiff either failed to provide the necessary documents or 13 rejected the offers for loan assistance. (Doc. 9 at 4.) Defendants further claim that BANA 14 and SPS provided notices to Plaintiff regarding potential foreclosure due to missed 15 payments. (Id.) Defendants allege that on November 12, 2019, SPS delivered a letter to 16 Plaintiff, informing Plaintiff that a foreclosure sale for his property was scheduled for 17 December 4, 2019. (Doc. 9-6.) Ultimately, the foreclosure sale was continued for nearly 18 three years, and the property was eventually sold on September 6, 2022. (See Docs. 9-7; 19 9-8.) 20 Plaintiff filed his original Complaint on September 1, 2022. (Doc 1.) The SPS 21 Defendants filed a Motion to Dismiss. (Doc. 10.) Without seeking leave Plaintiff filed his 22 First Amended Complaint (“FAC”), (Doc. 13), whereby he added the Buchalter 23 Defendants as additional defendants. Both sets of Defendants filed Motions to Dismiss, 24 which the Court granted without prejudice. (Doc. 46.) Plaintiff filed his Second Amended 25 Complaint on August 4, 2022, to which both sets of Defendants have filed Motions to 26 Dismiss for failure to state a claim. (Docs. 62; 64.) These Motions are now before the 27 Court. 28 II. LEGAL STANDARD 1 To survive a Rule 12(b)(6) motion for failure to state a claim, a complaint must meet 2 the requirements of Rule 8(a)(2). Rule 8(a)(2) requires a “short and plain statement of the 3 claim showing that the pleader is entitled to relief,” so that the defendant has “fair notice 4 of what the . . . claim is and the grounds upon which it rests.” Bell Atl. Corp. v. Twombly, 5 550 U.S. 544, 555 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47 (1957)). This exists 6 if the pleader sets forth “factual content that allows the court to draw the reasonable 7 inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 8 U.S. 662, 678 (2009). “Threadbare recitals of the elements of a cause of action, supported 9 by mere conclusory statements, do not suffice.” Id. Plausibility does not equal 10 “probability,” but requires “more than a sheer possibility that a defendant has acted 11 unlawfully.” Id. “Where a complaint pleads facts that are ‘merely consistent with’ a 12 defendant’s liability, it ‘stops short of the line between possibility and plausibility’”. Id. 13 (quoting Twombly, 550 U.S. at 557). 14 Dismissal under Rule 12(b)(6) “can be based on the lack of a cognizable legal theory 15 or the absence of sufficient facts alleged under a cognizable legal theory.” Balistreri v. 16 Pacifica Police Dep’t, 901 F.2d 696, 699 (9th Cir. 1988). A complaint that sets forth a 17 cognizable legal theory will survive a motion to dismiss if it contains sufficient factual 18 matter, which, if accepted as true, states a claim to relief that is “plausible on its face.” 19 Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 570). 20 In ruling on a Rule 12(b)(6) motion to dismiss, the well-pled factual allegations are 21 taken as true and construed in the light most favorable to the nonmoving party. Cousins v. 22 Lockyer, 568 F.3d 1063, 1067 (9th Cir. 2009). However, legal conclusions couched as 23 factual allegations are not given a presumption of truthfulness, and “conclusory allegations 24 of law and unwarranted inferences are not sufficient to defeat a motion to dismiss.” Pareto 25 v. FDIC, 139 F.3d 696, 699 (9th Cir. 1998). A court ordinarily may not consider evidence 26 outside the pleadings in ruling on a Rule 12(b)(6) motion to dismiss. See United States v. 27 Ritchie, 342 F.3d 903, 907 (9th Cir. 2003). “A court may, however, consider materials— 28 documents attached to the complaint, documents incorporated by reference in the 1 complaint, or matters of judicial notice—without converting the motion to dismiss into a 2 motion for summary judgment.” Id. at 908. 3 III. DISCUSSION 4 As an initial matter, the Court agrees with BANA that Plaintiffs’ SAC is full of 5 rambling allegations, conclusory allegations, and statements that make it difficult to find a 6 “short and plain statement showing that the [Plaintiff] is entitled to relief” as to any of his 7 claims. Fed. R. Civ. P. 8(a)(2). Although pro-se plaintiffs are held to a less stringent 8 pleading standard, conclusory and vague allegations will still not support a cause of action. 9 Ivey v. Bd. of Regents of the Univ. of Alaska, 673 F.2d 266, 268 (9th Cir. 1982). Further, 10 Plaintiff does not clearly assert which claims are being brought against which Defendants. 11 For this reason, the Court will analyze each claim as applied to BANA. 12 A. Wrongful Foreclosure 13 In Plaintiff’s SAC, he alleges that “[t]he foreclosing party did not have standing to 14 execute the power of sale clause in the deed of trust.” (Doc.

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