Joseph Picano Salazar v. Select Portfolio Servicing, Inc.

District Court, E.D. California·Decided June 12, 2026·No. 1:25-cv-00172·Unknown

Opinion

C ase No.:1:25-cv-00172-KES-SKO ORDER DENYING PLAINTIFF’S MOTION FOR LEAVE TO FILE AN JOSEPH PICANO SALAZAR, A FI M N E D N IN D G E S D AND O R P E P C O O S M IT M IO E N N DATI A O N N D S

THAT DEFENDANT’S MOTION TO Plaintiff, DISMISS PLAINTIFF’S SECOND AMENDED COMPLAINT BE GRANTED v. WITHOUT FURTHER LEAVE TO AMEND SELECT PORTFOLIO SERVICING, INC., (Docs. 51, 57) Defendant. OBJECTIONS DUE: 21 Days

_____________________________________ Plaintiff Joseph Picano Salazar initiated this action on February 11, 2025, with a fee-paid complaint. (See Doc. 10 (“FAC”)). On March 31, 2026, the Court dismissed that complaint, but granted leave to amend. (Doc. 48). On April 28, 2026, Plaintiff timely filed a second amended complaint. (Doc. 49 (“SAC”)) Presently before the Court are several matters filed by both parties including: (1) Defendant Select Portfolio Servicing, Inc.’s Motion to Dismiss the Second Amended Complaint, (Docs. 51; 51-1 (“MTD”)); (2) Defendant Select Portfolio Servicing, Inc.’s Request for Judicial Notice, (Doc. 51-2); and (3) Plaintiff’s Motion to File an Amended Opposition, (Doc. 57). The Motion for Leave to file an Amended Opposition was submitted for immediate action by the undersigned on June 11, 2026. (Doc. 58). The pending Motion to Dismiss was referred to the undersigned pursuant to 8 U.S.C. § 636(b)(1), (see Doc. 56), and are appropriate for decision without oral argument, see Local Rule 230(g). /// /// A. Factual Background Plaintiff Joseph Picano Salazar signed a Deed of Trust dated June 17, 2022, the subject of which is a property identified as 942 West Loyola Avenue, Visalia, California. (Doc. 49 at 21−33). The relevant parties identified in the Deed of Trust are: (1) Plaintiff as the borrower, (2) United Wholesale Mortgage, LLC as the lender, and (3) Mortgage Electronic Registration System (“MERS”) as nominee and beneficiary. (Id. at 21). As relevant to the pending action, the Deed of Trust states: Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender’s successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the property.” (Id. at 23). Defendant Select Portfolio Servicing was not a party at the time the Deed of Trust was executed, but on October 25, 2024, MERS purported to assign its interest to Defendant Wilmington Savings Fund Society, FSB, solely as owner Trustee of OBX 2023-NMQ2 Trust, with Defendant Select Portfolio Servicing, Inc. as servicer through a “Corporate Assignment Deed of Trust.” (Id. at 43−44). On November 22, 2024, Defendant Wilmington Savings Fund Society, FSB, solely as owner Trustee of OBX 2023-NMQ2 Trust, with Defendant Select Portfolio Servicing, Inc. as servicer executed a substation of trustee, substituting Defendant Clear Recon. Corp. as successor trustee. (Id. at 46). On December 2, 2024, a Notice of Sale was sent by Defendant Clear Recon Corp. to Plaintiff. (Id. at 49–51). On May 1, 2025 a trustee’s sale was conducted and a Trustee’s Deed Upon Sale was thereafter recorded in Tulare County on May 20, 2025, purporting to convey title to Wilmington Savings Fund Society, FSB solely as owner Trustee of OBX 2023-NMQ2 Trust. (Id. at 122−23). B. Procedural Posture Plaintiff, proceeding pro se, initiated this action on February 11, 2025, with a fee-paid complaint. (Doc. 1). After Plaintiff’s FAC was dismissed with leave to amend, (Doc. 48), Plaintiff filed a second amended complaint (“SAC”), bringing claims against Defendants Select Portfolio Servicing, Inc., Clear Recon Corp., and Wilmington Savings Fun Society, FSB for (1) wrongful foreclosure, (2) breach of contract, (3) quiet title, (4), slander of title, (5) declaratory relief, (6) cancellation of instruments. (SAC ¶¶ 33−66). Plaintiff also requests a temporary restraining order, preliminary injunction, and permanent injunction. The gravamen of Plaintiff’s SAC mirrors that of his FAC in that Plaintiff alleges “the entities who executed and directed the later assignment, substitution, and foreclosure-related instruments had established lawful authority to do so at the relevant times,” (id. ¶ 17). On May 13, 2026, Defendant Select Portfolio Servicing filed a Motion to Dismiss Plaintiff’s SAC. (MTD). On May 27, 2026, Plaintiff filed an opposition. (Doc. 54). On June 8, 2026, Defendant Select Portfolio Servicing filed a reply. (Doc. 59). On June 5, 2026, Plaintiff filed a Motion for Leave to File an Amended Opposition. (Doc. 57). The Court construed the motion as an administrative motion under Eastern District of California Local Rule 233. Defendants Select Portfolio Servicing, Inc. and Wilmington Savings Fund Society, FSB filed their opposition on June 9, 2026. (Doc. 60). Starting with Plaintiff’s Motion for Leave to File an Amended Opposition, (Doc. 57), the undersigned observes that the basis upon which Plaintiff seeks leave to amend his opposition is to “supplement the record with newly discovered facts arising after the filing of Plaintiff’s original opposition which directly relate to issues of contractual authority, agency, ownership, and standing raised in Defendants’ Motion to Dismiss.” (Doc. 57). The undersigned will deny Plaintiff’s motion on the basis that in consideration of a motion to dismiss, a court may not consider “extrinsic evidence” beyond the allegations contained in the operative complaint, here the SAC. N. Cal. River Watch v. Fluor Corp., No. 10-CV-05105-MEJ, 2014 WL 3385287, at *6 (N.D. Cal. July 9, 2014). Because Plaintiff’s amended opposition is offered for the impermissible purpose of supplementing the record with extrinsic evidence, the undersigned will deny Plaintiff’s motion. See Melrose Place Holdings v. Socotra Opportunity Fund, LLC, No. CV2201329MWFPDX, 2022 WL 3013226, at *5 (C.D. Cal. May 31, 2022) (“Introducing extrinsic evidence in Opposition to a motion to dismiss is improper.”). III. MOTION TO DISMISS PLAINTIFF’S SECOND AMENDED COMPLAINT A. Legal Standard A motion to dismiss brought pursuant to Rule 12(b)(6) for failure to state a claim upon which relief can be granted “tests the legal sufficiency of a claim,” and dismissal is “proper if there is a ‘lack of a cognizable legal theory or the absence of sufficient facts alleged under a cognizable legal theory.’” Conservation Force v. Salazar, 646 F.3d 1240, 1241–42 (9th Cir. 2011). “To survive a motion to dismiss, the plaintiff’s complaint ‘must contain sufficient factual matter, accepted as true, to “state a claim to relief that is plausible on its face.”’” Boquist v. Courtney, 32 F.4th 764, 773 (9th Cir. 2022) (citing Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009); Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “At this stage, the Court must take all well-pleaded allegations of material fact as true and construe them in the light most favorable to the non-moving party.” Great Minds v. Office Depot, Inc., 945 F.3d 1106, 1109 (9th Cir. 2019). “[D]etermining whether a complaint states a plausible claim [is] a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Iqbal, 556 U.S. at 663–64. “‘[I]n practice, a complaint . . . must contain either direct or inferential allegations respecting all the material elements necessary to sustain recovery under some viable legal theory.’” Twombly, 550 U.S. at 562. In resolving a Rule 12(b)(6) motion, the Court’s review is generally limited to the “allegations contained in t

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Joseph Picano Salazar v. Select Portfolio Servicing, Inc., (E.D. Cal. 2026).

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