Greenspon v. Deutsche Bank National Trust Company

CourtDistrict Court, D. Hawaii
DecidedJanuary 7, 2020
Docket1:19-cv-00516
StatusUnknown

This text of Greenspon v. Deutsche Bank National Trust Company (Greenspon v. Deutsche Bank National Trust Company) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenspon v. Deutsche Bank National Trust Company, (D. Haw. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF HAWAII

MICHAEL C. GREENSPON, CIVIL NO. 19-00516 JAO-KJM Plaintiff, ORDER GRANTING PLAINTIFF’S MOTION TO REMAND vs.

DEUTSCHE BANK NATIONAL TRUST COMPANY, et al., Defendants.

ORDER GRANTING PLAINTIFF’S MOTION TO REMAND Plaintiff Michael C. Greenspon (“Plaintiff”) brought claims against various defendants in Hawai‘i state court. Defendants removed the action to federal court. ECF Nos. 1, 6, 12, 13. Plaintiff now asks the Court to remand the action. ECF No. 24. The Court deems this matter appropriate for decision without oral argument. See Fed. R. Civ. P. 78; Local Rule 7.1(c). For the reasons stated below, Plaintiff’s motion to remand is GRANTED. I. BACKGROUND

On September 25, 2019, Plaintiff filed a First Amended Complaint (“FAC”) in Hawai‘i state court against Defendants Deutsche Bank National Trust Company (“Deutsche Bank”); Ocwen Loan Servicing, LLC (“Ocwen”);1 James Blaine Rogers III; J. Blaine Rogers III, ALC; Alan Jarren Ma; and Dentons US LLP.2 See

ECF No. 24-3 On September 26, 2019 Defendants Deutsche Bank and Ocwen (collectively, “Deutsche Bank Defendants”) removed the action to federal court because one of Plaintiff’s claims allegedly raises a federal question. See ECF No.

1.3 The present dispute stems from a construction loan Plaintiff obtained in 2003 from IndyMac Bank, FSB that was secured by a mortgage on property on Maui. See FAC ¶ 24. A few years later, in 2008, federal regulators seized

IndyMac and OneWest (“CIT”) acquired some of its assets while the FDIC placed

1 Defendant Ocwen Loan Servicing, LLC merged with its successor-by-merger, PHH Mortgage Corporation. See ECF No. 1 at 2 n.1.

2 Defendants note that Plaintiff also appears to name the law firm Alston Hunt Floyd & Ing (“AHFI”) and attorney Jenny J.N.A. Nakamoto as defendants. See ECF No. 40 at 1 n.1. Hereinafter, “Dentons Defendants” will refer to: James Blaine Rogers III; J. Blaine Rogers III, ALC; AHFI; Dentons US LLP; and Jenny J.N.A. Nakamoto. These attorneys and the firms they are associated with represent the financial institutions implicated in this dispute over Plaintiff’s property on Maui. See FAC ¶¶ 11–15.

3 Deutsche Bank Defendants’ first notice of removal and their first amended notice of removal attached only Plaintiff’s initial state-court complaint, rather than the FAC that Plaintiff filed in state court prior to Defendants’ removal. See ECF Nos. 1-1, 6-1. About two weeks later, Deutsche Bank Defendants filed a second amended notice of removal attaching the FAC. See ECF No. 12-2. At that time, Dentons Defendants filed a supplemental notice of removal. ECF No. 13. Because the parties treat the FAC as the operative pleading for purposes of Plaintiff’s motion to remand, the Court does so as well. See ECF Nos. 38, 40. other assets in receivership. See id. ¶¶ 30–32. Plaintiff alleges that CIT, acting as Deutsche Bank’s servicer and agent, conducted an unlawful nonjudicial

foreclosure and public auction of the Maui property in 2010. See id. ¶ 33. A series of lawsuits in Hawai‘i state court followed. See id. ¶¶ 34–41. In what Plaintiff calls the “Main Action,” he sued IndyMac and, in

September 2011, the FDIC agreed to disclaim any rights or interests in the Maui property in exchange for dismissal of all claims against it and IndyMac. See id. ¶¶ 42–45. In another action, and through a counterclaim in the Main Action, Deutsche

Bank sought to eject Plaintiff from the Maui property based on the 2010 nonjudicial foreclosure sale. See id. ¶¶ 34, 46. Plaintiff alleges that, in seeking this relief, Deutsche Bank made certain misrepresentations about the nonjudicial

foreclosure—e.g., who owned the promissory note and who was the highest bidder at auction—in order to obtain possession of the Maui property. See id. ¶¶ 47–49. Although Deutsche Bank obtained summary judgment for possession of the property in the Main Action in 2013, the Intermediate Court of Appeals (“ICA”)

vacated that judgment and remanded the case to the trial court in 2016.4 See id. ¶¶ 35-37.

4 Plaintiff alleges that, while the appeal in the Main Action was pending before the ICA, Deutsche Bank brought a retaliatory action to collect rent and seek damages for Plaintiff’s alleged trespassing on the Maui property. See id. ¶¶ 37–41. On remand, Deutsche Bank amended its counterclaim in the Main Action in May 2018 regarding its right to foreclose and/or enforce a lien on the Maui

property. See id. ¶¶ 50–51. In connection with this, Deutsche Bank (through its agents and attorneys) recorded a Notice of Pendency of Action in the Bureau of Conveyances in May 2018 representing that Deutsche Bank is the holder of the

note, although Plaintiff alleges Deutsche Bank had previously represented to the contrary. See id. ¶¶ 48, 50–51. Deutsche Bank (through its agents and attorneys) also later recorded an assignment and transfer of lien in the Hawai‘i Bureau of Conveyances in July 2018 that purports to transfer the note and mortgage from

FDIC to Deutsche Bank, effective June 2006. See id. ¶¶ 52–54. But Plaintiff alleges two problems with this recording: (1) the FDIC had no rights to transfer to Deutsche Bank because of the FDIC’s disclaimer of rights or interest in the Maui

property in September 2011; and (2) the FDIC had nothing to transfer to Deutsche Bank in 2006 because the FDIC receivership of IndyMac did not occur until 2008. See id. ¶¶ 81–83. Plaintiff thus alleges these documents are a sham and Defendants’

promotion of them to obtain relief in state court constitutes fraud. See id. ¶¶ 84– 88. Plaintiff further alleges that recording these documents constitutes tampering with a government record in violation of Hawai‘i Revised Statutes (“HRS”) § 710-

1017, unlawful recording of a nonconsensual lien in violation of HRS § 507D, and violations of the Hawai‘i Rules of Professional Conduct for the attorneys involved. See id. ¶¶ 91–92, 100–06, 114.

Under his first claim for fraud and intentional misrepresentation, Plaintiff also alleges Deutsche Bank and Ocwen overstated any amount due on the loan based on inflated force-placed hazard insurance charges and fees connected to the

prior unlawful nonjudicial foreclosure. See id. ¶¶ 64–71, 107–12. He also takes issue with Ocwen’s failure to provide requested information regarding when servicing transferred to Ocwen and the amount due. See id. ¶¶ 56–63. Plaintiff’s third cause of action—which Defendants contend justified

removal—alleges unfair and deceptive acts and practices in violation of HRS § 480-2. To support this claim, Plaintiff references the fraudulent conduct and wrongful foreclosure discussed above, as well as Defendants’ conduct that he

alleges violates the federal Fair Debt Collection Practices Act (“FDCPA”) along with other Hawai‘i laws, the Hawai‘i Rules of Professional Conduct, Hawai‘i Court Records Rules regarding protection of personal information, and conduct allegedly evidencing a pattern of malicious tactics in litigation and to collect a

debt. See id. ¶¶ 144–77. Count III also incorporates the remaining allegations of the FAC, which allege claims for wrongful foreclosure (Count II), see id. ¶¶ 136–43, violations of

the Hawai‘i Collection Practices Act, HRS § 480D (Count IV), see id.

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