Jose G. Castro-Urdiales and Lucia R. Matallana v. LoanCare, LLC and Lakeview Loan Servicing, LLC

CourtDistrict Court, E.D. California
DecidedMarch 25, 2026
Docket2:25-cv-03731
StatusUnknown

This text of Jose G. Castro-Urdiales and Lucia R. Matallana v. LoanCare, LLC and Lakeview Loan Servicing, LLC (Jose G. Castro-Urdiales and Lucia R. Matallana v. LoanCare, LLC and Lakeview Loan Servicing, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jose G. Castro-Urdiales and Lucia R. Matallana v. LoanCare, LLC and Lakeview Loan Servicing, LLC, (E.D. Cal. 2026).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 JOSE G. CASTRO-URDIALES and No. 2:25-cv-3731 DJC AC PS LUCIA R. MATALLANA, 12 Plaintiffs, 13 ORDER and v. 14 FINDINGS AND RECOMMENDATIONS LOANCARE, LLC and LAKEVIEW 15 LOAN SERVICING, LLC, 16 Defendants. 17 18 Defendants removed this case from San Joaquin County Superior Court on December 24, 19 2025. ECF No. 1. Plaintiffs are proceeding pro se, and pre-trial proceedings are accordingly 20 referred to the undersigned pursuant to Local Rule 302(c)(21). Defendants filed a motion to 21 dismiss. ECF No. 4. Plaintiffs opposed the motion (ECF No. 7) and filed a motion to remand to 22 state court (ECF No. 10). For the reasons set forth below the undersigned recommends 23 defendants’ motion to dismiss be GRANTED but that plaintiffs be given leave to file an amended 24 complaint, and that the motion to remand be DENIED. Plaintiffs also filed two motions to 25 proceed without paying the filing fee. ECF Nos. 8, 9. These motions are unnecessary because 26 the removing defendants paid the filing fee, and plaintiffs were not required to do so. These 27 motions (ECF No. 8 and 9) are accordingly DENIED as MOOT. 28 //// 1 I. The Complaint 2 Plaintiffs jointly own and reside at a single family residence in Lodi, California (the 3 “Subject Property”). ECF No. 1 at 21. Plaintiffs allege noncompliance with “federal and state 4 law” in connection with a “Loan Modification Agreement Document Package” that was offered 5 to them on September 10, 2025. Id. at 12. The proposed terms of the Package suggested a 6 payment above plaintiff’s stated affordability, and the offer came while plaintiffs’ Qualified 7 Written Request, Notice of Error, and TILA validation request remained unresolved. Id. at 13. 8 Plaintiffs seek a “judicially ordered permanent loan restructuring – [i]ncluding a 3% interest rate, 9 and affordable monthly payment not exceeding $2,000 and without any trial /review period – to 10 restore financial stability and home retention.” Id. at 16. It does not appear that plaintiffs have 11 lost their property or are imminently facing the loss of their property. The complaint is more than 12 100 pages long, and plaintiffs allege 15 causes of action, including under the California 13 Constitution, the Code of Civil Procedure, the Real Estate Settlement Procedures Act (RESPA), 14 the Truth in Lending Act (TILA) and the Fair Debt Collection Practices Act (FDCPA). Id. at 37- 15 118. 16 II. Motion to Remand 17 This case was removed from state court to federal court on December 24, 2025. ECF No. 18 1. Plaintiffs moved for remand on January 27, 2026. ECF No. 10. Plaintiffs argue that this court 19 lacks subject matter jurisdiction because, even though they allege several federal claims, the 20 “gravamen” of the complaint is their request for injunctive and equitable relief under California 21 homeowner protection laws. ECF No. 10 at 3-4. 22 A defendant who is sued in state court may remove to the appropriate federal district court 23 any civil action over which the district courts have original jurisdiction. See 28 U.S.C. § 1441(a). 24 “Federal courts are courts of limited jurisdiction.” Kokkonen v. Guardian Life Ins. Co. of Am., 25 511 U.S. 375, 377 (1994). In 28 U.S.C. §§ 1331 and 1332(a), “Congress granted federal courts 26 jurisdiction over two general types of cases: cases that ‘aris[e] under’ federal law, § 1331, and 27 cases in which the amount in controversy exceeds $ 75,000 and there is diversity of citizenship 28 among the parties, § 1332(a). These jurisdictional grants are known as ‘federal-question 1 jurisdiction’ and ‘diversity jurisdiction, respectively.” Home Depot U. S. A., Inc. v. Jackson, 587 2 U.S. 435, 437 (2019). Defendants removed this case from state court on the basis that there is 3 both federal question jurisdiction and diversity jurisdiction. ECF No. 1 at 4-5. 4 “Under § 1447(c), the district court must remand ‘[i]f at any time before final judgment it 5 appears that the district court lacks subject matter jurisdiction[.]’ ” Smith v. Mylan Inc., 761 F.3d 6 1042, 1044 (9th Cir. 2014). “The general rule governing removal of actions from the state court 7 to federal court is that for a district court to have federal question removal jurisdiction, a federal 8 cause of action must appear on the face of the complaint.” Felton v. Unisource Corp., 940 F.2d 9 503, 506 (9th Cir. 1991) (citations omitted). Here, it is clear on the face of the complaint that this 10 court has subject matter jurisdiction due to the various federal claims made by plaintiffs. It is not 11 enough for plaintiffs to argue that the “gravamen” of the complaint seeks relief under state law. 12 Plaintiffs seek to recover on several claims against defendants for violation of at least three 13 different federal statutes (TILA, RESPA, and the FDCPA). Accordingly, it is clear that this court 14 has federal question jurisdiction. 15 It also appears that there is diversity jurisdiction. Plaintiffs allege they are citizens of 16 California. ECF No. 1 at 5, 21. Though plaintiffs do not clearly allege defendants’ citizenship, 17 the corporate defendants identified their principal places of business in the notice of removal as 18 Virgina and Florida, with members residing in Virginia, Maryland, and Pennsylvania. ECF No. 1 19 at 5. Plaintiffs seek damages in excess of $75,000. Id. at 102. Accordingly, the undersigned 20 finds that there is subject matter jurisdiction based on both diversity and federal question 21 jurisdiction, and the motion to remand (ECF No. 10) must be DENIED. 22 III. Motion to Dismiss 23 Defendants move to dismiss for lack of standing and for failure to state a claim in 24 compliance with Fed. R. Civ. P. 8(a) and Fed. R. Civ. P. 12(b)(6). ECF No. 4. Plaintiffs oppose 25 the motion. ECF No. 7. Defendants submitted a reply. ECF No. 11. 26 A. Legal Standards Governing Motions to Dismiss 27 “The purpose of a motion to dismiss pursuant to Rule 12(b)(6) is to test the legal 28 sufficiency of the complaint.” N. Star Int’l v. Ariz. Corp. Comm’n, 720 F.2d 578, 581 (9th Cir. 1 1983). “Dismissal can be based on the lack of a cognizable legal theory or the absence of 2 sufficient facts alleged under a cognizable legal theory.” Balistreri v. Pacifica Police Dep’t., 901 3 F.2d 696, 699 (9th Cir. 1990). “Rule 12(b)(6) is read in conjunction with Rule 8(a), which 4 requires not only ‘fair notice of the nature of the claim, but also grounds on which the claim 5 rests.’” Zixiang Li v. Kerry, 710 F.3d 995, 998 (9th Cir. 2013) (quoting Bell Atlantic Corp. v. 6 Twombly, 550 U.S. 544, 556 n.3 (2007)). 7 Pursuant to Fed. R. Civ. P. 8, a complaint must contain “a short and plain statement of the 8 claim showing that the pleader is entitled to relief[.]” Fed. R. Civ. P. 8(a)(2).

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Bluebook (online)
Jose G. Castro-Urdiales and Lucia R. Matallana v. LoanCare, LLC and Lakeview Loan Servicing, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jose-g-castro-urdiales-and-lucia-r-matallana-v-loancare-llc-and-caed-2026.