Kawelo v. JP Morgan Chase Bank

District Court, D. Hawaii·Decided August 3, 2020·No. 1:19-cv-00598·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF HAWAI‘I

DAVID LUKELA KAWELO, SR., Case No. 19-cv-00598-DKW-WRP and ROCHELLE NOHEA KAWELO, ORDER (1) GRANTING Plaintiffs, DEFENDANTS’ MOTIONS TO DISMISS, AND (2) DISMISSING vs. CASE WITHOUT LEAVE TO AMEND JP MORGAN CHASE BANK, et al.,

Defendants.

Plaintiffs David Lukela Kawelo, Sr. and Rochelle Nohea Kawelo (collectively, “the Kawelos” or “Plaintiffs”) seek, among other things, to quiet title to real property in Waianae, Oahu, Hawaii. In two motions to dismiss, various Defendants argue that this case should be dismissed as barred by the Rooker-Feldman doctrine, res judicata, and applicable statutes of limitation. The Court agrees. In addition, as more fully set forth below, because the record reflects that any amendment of the Complaint would be futile, dismissal is without leave to amend. PROCEDURAL BACKGROUND On November 1, 2019, Plaintiffs filed a Complaint against Defendants JPMorgan Chase Bank, N.A. (JPMC), Chase Home Finance (CHF), Mortgage Electronic Registration Systems (MERS), Zachary K. Kondo, Aldridge Pite LLP (AP), and Cui Mei Ho.1 Dkt. No. 1. In their Complaint, the Kawelos set forth the following claims: (1) “wrongful sale of subject property”; (2) fraud; (3) unfair or

deceptive acts or practices; (4) fraud; (5) breach of contract and failure to act in good faith;2 (6) unjust enrichment; (7) mistake; (8) “Hawaii Bureau of Conveyance Regulations Violations”; (9) “improper restrictions resulting from securitization

leaves note and mortgage unenforceable”; (10) “wrongful conversion of note – violation of the securitization agreement”; (11) breach of contract; and (12) quiet title. On May 21, 2020, although Plaintiffs had failed to show good cause for an

extension of time to serve the Complaint on Defendants, the Court nonetheless extended the time to serve until June 4, 2020. Dkt. No. 10. On June 3, 2020, Plaintiffs filed various executed summonses, which purported to serve JPMC, CHF,

AP, Kondo, and Ho. See Dkt. Nos. 11-14. As a result, on June 9, 2020, the Court did not, at that time, dismiss this case against those defendants. Dkt. No. 15 at 2. However, because no summons had been returned executed with respect to MERS, the Court dismissed that defendant for failure to serve. Id.

1Collectively, the above-named defendants are referred to herein as “Defendants.” 2In the Complaint, both the fourth and fifth claims are designated as “Count V[.]” Dkt. No. 1 at 45-46. Herein, the Court refers to the former of those claims, sounding in “Fraud,” as Claim 4, and the latter, for breach of contract, as Claim 5. 2 On June 22, 2020, AP and Kondo filed a motion to dismiss, arguing that the Complaint should be dismissed on the grounds of res judicata, the Rooker-Feldman

doctrine,3 failure to state a claim, and timeliness. Dkt. No. 17. On June 26, 2020, JPMC, CHF, and MERS filed a separate motion to dismiss, arguing that the Complaint should be dismissed due to res judicata, collateral estoppel, untimeliness,

and failure to state a claim. Dkt. No. 22.4 Thereafter, the Court scheduled a hearing on both motions to dismiss for July 31, 2020. Dkt. Nos. 18, 25. As a result, pursuant to Local Rule 7.2, a response to both motions was due on or before July 10, 2020. No response was timely filed, however.

Instead, on July 28, 2020, almost three weeks after the pertinent deadline and after the vacatur of the hearing on the motions to dismiss, Plaintiffs filed two documents. The first is a purported response in opposition to the motions to

dismiss. Dkt. No. 29. The second is a very belated attempt to “set aside” the dismissal of MERS. Dkt. No. 30. This Order now follows.

3Dist. of Columbia Court of Appeals v. Feldman, 460 U.S. 462 (1983); Rooker v. Fid. Trust Co., 263 U.S. 413 (1923). 4Subsequently, counsel withdrew the motion to dismiss on behalf of MERS in light of this Court’s order dismissing MERS for failure to serve. Dkt. No. 26. 3 STANDARD OF REVIEW I. Federal Rule of Civil Procedure 12(b)(1)

Defendants argue that the Rooker-Feldman doctrine prevents the Kawelos from bringing their claims. “The Rooker-Feldman doctrine recognizes that federal district courts generally lack subject matter jurisdiction to review state court

judgments.” Fontana Empire Ctr., LLC v. City of Fontana, 307 F.3d 987, 992 (9th Cir. 2002) (citing Dist. of Columbia Court of Appeals v. Feldman, 460 U.S. 462 (1983); Rooker v. Fid. Trust Co., 263 U.S. 413 (1923)). A challenge to the Court’s subject matter jurisdiction is brought under Federal Rule of Civil Procedure

12(b)(1). See Fed.R.Civ.P. 12(b)(1) (concerning lack of subject matter jurisdiction); see also Murray v. Dep’t of Consumer & Bus. Services, 2010 WL 3604657, at *9 n.4 (D.Or. Aug. 12, 2010) (applying Rule 12(b)(1) principles to a

Rooker-Feldman argument). When presented with an argument under Rule 12(b)(1), “the district court is ordinarily free to hear evidence regarding jurisdiction and to rule on that issue prior to trial, resolving factual disputes where necessary.” Augustine v. United States,

704 F.2d 1074, 1077 (9th Cir. 1983). Where the court considers evidence outside the pleadings for this purpose, “[n]o presumptive truthfulness attaches to plaintiff’s

4 allegations, and the existence of disputed material facts will not preclude the trial court from evaluating for itself the merits of jurisdictional claims.” Id.

II. Federal Rule of Civil Procedure 12(b)(6) Rule 12(b)(6) authorizes the Court to dismiss a complaint that fails “to state a claim upon which relief can be granted.” Rule 12(b)(6) is read in conjunction with

Rule 8(a), which requires “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a)(2). Pursuant to Ashcroft v. Iqbal, “[t]o survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” 556 U.S.

662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A court “must accept the factual allegations of the complaint as true and construe them in the light most favorable to the plaintiff.” Interpipe Contracting, Inc. v. Becerra,

898 F.3d 879, 886-887 (9th Cir. 2018) (quotation omitted). III. Pro Se Status Because the Kawelos are proceeding pro se, the Court liberally construes the Complaint. Eldridge v. Block, 832 F.2d 1132, 1137 (9th Cir. 1987). However, the

Court cannot act as counsel for a pro se litigant or supply the essential elements of a claim. Pliler v.

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