Funk v. Bank of Hawaii

District Court, N.D. California·Decided May 14, 2020·No. 5:20-cv-01378·Unknown

Opinion

LEIRE FUNK, Case No. 20-CV-01378-BLF

Plaintiff, ORDER GRANTING MOTION FOR v. REMAND AND REQUEST FOR ATTORNEYS’ FEES; TERMINATING BANK OF HAWAI’I, et al., DEFENDANT MTGLQ INVESTORS, L.P.’S MOTION TO DISMISS Defendants. WITHOUT PREJUDICE [Re: ECF 11; 17]

Plaintiff Leire Funk brings this action against Bank of Hawai’i (“BOH”) and MTGLQ Investors, L.P. (“MTGLQ”) (together “Defendants”) alleging unlawful conduct related to Defendants’ foreclosure of Plaintiff’s real property. Exh. A to Am. Notice of Removal (“Compl.”), ECF 16. On February 24, 2020, BOH removed this action from California state court based on diversity jurisdiction. See ECF 1. On March 3, 2020, Plaintiff filed the present motion for remand on the ground that BOH’s Notice of Removal (at ECF 1) failed to establish: (1) the citizenship of MTGLQ, (2) that MTGLQ consented to removal, and (3) that the amount in controversy is met. Motion, ECF 11. On March 9, 2020, MTGLQ made its appearance in the case, consented to removal, and submitted that it is a citizen of Delaware and New York. ECF 12; 14. On the same day, BOH filed an amended Notice of Removal. Am. Notice of Removal, ECF 15. Pursuant to Civil L.R. 7-1(b), the Court finds Plaintiff’s Motion for Remand suitable for decision without oral argument and hereby VACATES the hearing scheduled for June 11, 2020. For the reasons discussed below, the Court GRANTS Plaintiff’s Motion for Remand and Request for Attorneys’ Fees. “Property”). Compl. ¶ 7. On or about September 2002, Funk and her ex-husband obtained financing secured by the Property (the “First Loan”), executing a Promissory Note and Deed of Trust currently assigned to Defendant MTGLQ. Id. ¶ 8. On or about September 2003, Funk and her ex-husband obtained a loan of $100,000 secured by the Property (the “Second Loan”), executing a Promissory Note and Deed of Trust currently assigned to Defendant BOH. Id. ¶ 9. Funk claims that BOH stopped sending her monthly statements in 2009 and that MTGLQ stopped sending her monthly statements in 2015. Id. ¶¶ 10-11. On October 8, 2019, BOH caused a Notice of Default to be recorded on the Second Loan. Compl. ¶ 12. On November 5, 2019, MTGLQ caused a Notice of Default to be recorded on the First Loan. Id. ¶ 13. On January 8, 2020, Plaintiff submitted a payoff request to BOH through her title company. Id. ¶ 14. On January 16, 2020, BOH provided Plaintiff with a payoff quote, including $11,479.50 in legal fees that Plaintiff now contests. Id. ¶¶ 15-16. On January 7, 2020, Plaintiff submitted a payoff request to MTGLQ through her title company. Id. ¶ 18. On January 30, 2020, MTGLQ provided Plaintiff with a payoff quote, including $13,176.81 in fees that Plaintiff now contests. Id. ¶¶ 18-19. Plaintiff alleges that these “fees are interfering with Plaintiff’s attempts to avoid foreclosure.” Id. ¶¶ 17, 21. On February 6, 2020, Plaintiff filed a Complaint in Santa Clara County Superior Court against Defendants. See generally Compl. Based on the above allegations, Plaintiff asserts the following causes of action: (1) Violation of Cal. Civ. Code Section 2924 (Against All Defendants); (2) Violation of Cal. Civ. Code Section 2924(c) (Against All Defendants); (3) Breach of Covenant of Good Faith and Fair Dealing (Against All Defendants); (4) Breach of Contract (Against MTGLQ); (5) Violation of Cal. Civ. Code Section 2943 (Against MTGLQ); (6) Violation of Bus. and Prof. Code Section 17200 et seq. (Against All Defendants); (7) Negligence (Against All Defendants); and (8) Violation of Rosenthal Fair Debt Collect Practices Act, Cal. Civ. Code Section 1788, et See generally, Compl. On February 24, 2020, BOH filed a notice of removal on the basis of diversity jurisdiction. See Notice of Removal, ECF 1. Plaintiff moved to remand this action back to state court. See Motion. On March 9, 2020, MTGLQ filed its notice of appearance and consented to removal. ECF 12. On the same day, BOH filed a notice of errata regarding its notice of removal (ECF 13) and an amended notice of removal (ECF 15). Defendants oppose the Motion for Remand on the ground that there is diversity of citizenship and the amount in controversy requirement is met. See BOH’s Opposition to Motion to Remand (“Opp’n”), ECF 20; MTGLQ’s Joinder in Opposition of BOH to Plaintiff’s Motion to Remand, ECF 22. A. Requests for Judicial Notice The Court may take judicial notice of documents referenced in the complaint, as well as matters in the public record. See Lee v. City of L.A., 250 F.3d 668, 688–89 (9th Cir. 2001), overruled on other grounds by Galbraith v. County of Santa Clara, 307 F.3d 1119, 1125–26 (9th Cir. 2002). In addition, the Court may take judicial notice of matters that are either “generally known within the trial court’s territorial jurisdiction” or “can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201(b). Public records, including judgments and other court documents, are proper subjects of judicial notice. See, e.g., United States v. Black, 482 F.3d 1035, 1041 (9th Cir. 2007). However, “[j]ust because the document itself is susceptible to judicial notice does not mean that every assertion of fact within that document is judicially noticeable for its truth.” Khoja v. Orexigen Therapeutics, Inc., 899 F.3d 988, 999 (9th Cir. 2018). BOH requests judicial notice of (1) PACER Docket of bankruptcy case, In re Rick Funk, No. 09-52600 (Bankr. N.D. Cal.) (Exh. A); (2) Notice of Trustee’s Sale dated February 13, 2020 (Exh. B); (3) Notice of Trustee’s Sale dated January 24, 2020 (Exh. C); (4) Notice of Federal Tax Lien from the Internal Revenue Service dated August 5, 2011 and recorded on August 18, 2011— Doc. No. 21283637 (Exh. D); (5) Court Order from MTGLQ Investors, L.P. v. Wellington, No. 17- Mortgage LLC, No. 17-cv-02994-BLF (N.D. Cal. Oct. 16, 2017) (Exh. F). Request for Judicial Notice (“RJN”), ECF 21. Plaintiff objects to the BOH’s request as to Exhibits A, D, and E because Defendants do not rely on these exhibits for their arguments in opposition to Motion for Remand, and the inclusion of the documents would be prejudicial to Plaintiff. Reply at 1, ECF 24. Plaintiff also objects the request as to Exhibit F (a previous opinion from this Court), labeling the request as “confusing” because Defendants can simply cite to the opinion without the need for judicial notice. Id. The Court agrees with Plaintiff as to Exhibits A, D, and E and declines to judicially notice those exhibits because they are not relevant to the Court’s resolution to the Motion for Remand. The Court, however, takes judicial notice of Exhibits B, C and F, because they are public documents, Lee, 250 F.3d at 688-89, and are relevant to the resolution of this Motion. In sum, BOH’s request for judicial notice as to Exhibits B, C and F is GRANTED and BOH’s request for judicial notice as to Exhibits A, D, and E is DENIED. B. Motion for Remand 1. Legal Standard “[A]ny civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending.” 28 U.S.C. § 1441(a). “A defendant may remove an action to federal court based on federal question jurisdiction or diversity jurisdiction.” Hunter v. Philip Morris USA,

Funk v. Bank of Hawaii, (N.D. Cal. 2020).

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