King v. U.S. Bank Trust, N.A. as Trustee for LSF9 Master Participation Trust

CourtDistrict Court, S.D. California
DecidedOctober 11, 2019
Docket3:19-cv-01689
StatusUnknown

This text of King v. U.S. Bank Trust, N.A. as Trustee for LSF9 Master Participation Trust (King v. U.S. Bank Trust, N.A. as Trustee for LSF9 Master Participation Trust) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
King v. U.S. Bank Trust, N.A. as Trustee for LSF9 Master Participation Trust, (S.D. Cal. 2019).

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 SOUTHERN DISTRICT OF CALIFORNIA 9 10 PAMELA KING aka PAMELA Case No.: 19-CV-1689-CAB-WVG SCHIAVONE, 11 ORDER ON MOTIONS TO DISMISS Plaintiff, 12 AND MOTION TO EXPUNGE v. NOTICE OF PENDENCY OF 13 ACTION OR REQUIRE A BOND U.S. BANK TRUST, N.A., AS TRUSTEE 14 FOR LSF9 MASTER PARTICIPATION 15 TRUST et al., [Doc. Nos. 3, 5, 9] 16 Defendants. 17 18 This matter is before the Court on motions to dismiss and to expunge a notice of 19 pendency of action recorded against the real property located at 584 Palomar Court, 20 Encinitas, California 92024 (the “Property”) filed by Defendants U.S. Bank Trust, N.A., 21 as trustee for LSF9 Master Participation Trust (“US Bank”) and Summit Management 22 Company, LLC (“Summit”). Plaintiff has opposed the motions, and the Court deems them 23 suitable for submission without oral argument. As discussed below, the motions are 24 granted. 25 I. Background 26 On October 15, 2004, Plaintiff entered into a mortgage loan agreement with 27 Countrywide Bank as lender consisting of a promissory note and deed of trust secured by 28 the Property. [Doc. No. 1-2 at ¶ 8.] The trustee under the deed of trust was CTC Real 1 Estate Services, and the beneficiary was Defendant Mortgage Electronic Registration 2 Systems (“MERS”). [Id.] 3 On October 20, 2009, a “Substitution of Trustee and Assignment of Deed of Trust” 4 dated September 8, 2009 (the “September 2009 Assignment”), was recorded in the San 5 Diego County Recorder’s Office. [Id. at 58.] The document states that MERS substituted 6 Recontrust Company, N.A., as trustee, and transferred to BAC Home Loans Servicing LP 7 all beneficial interest under the deed of trust to the Property.1 [Id. at 58, 60.] 8 On July 21, 2016, an “Assignment of Deed of Trust” dated May 17, 2016, was 9 recorded in the San Diego County Recorder’s Office. [Id. at 62.] The document stated 10 that Defendant Bank of America, N.A. (“BoA”), successor by merger to BAC Home Loans 11 Servicing LP, assigned its rights under the deed of trust to the Property to US Bank. [Id.] 12 On July 25, 2016, a “Substitution of Trustee” dated July 21, 2016, that substituted Summit 13 as trustee was recorded in the San Diego County Recorder’s Office. [Doc. No. 4 at 43.]2 14 On October 21, 2016, a notice of trustee sale on the Property was recorded. [Doc. 15 No. 1-2 at ¶ 18; Doc. No. 4 at 51.] On July 5, 2017, a foreclosure sale was held with 16 Summit as trustee, and the Property was conveyed to U.S. Bank. [Doc. No. 1-2 at ¶ 19; 17 Doc. No. 4 at 54.] 18 Two years later, on July 9, 2019, Plaintiff filed a complaint in San Diego County 19 Superior Court seeking to unwind the foreclosure sale, cancel the various assignments and 20 substitutions recorded against the Property, and to quiet title to the Property. The complaint 21 named US Bank, Summit, BoA, and MERS as defendants. Summit and US Bank removed 22 the complaint to this court and on September 6, 2019, filed a motion to dismiss and a 23 motion to expunge or require a bond for the notice of pendency of action that Plaintiff 24

25 26 1 A duplicative “Substitution of Trustee and Assignment of Deed of Trust” was recorded in March 2010. 2 Defendants request judicial notice of various recorded documents related to the Property and a certificate 27 of merger filed with the Texas Secretary of State. [Doc. No. 4.] Plaintiff did not oppose this request, and it is granted. See Lee v. City of Los Angeles, 250 F.3d 668, 689 (9th Cir. 2001) (“[U]nder Fed.R.Evid. 28 1 recorded after filing the complaint. These motions have been fully briefed. Meanwhile, 2 on September 25, 2019, BoA and MERS filed their own motion to dismiss. The deadline 3 for Plaintiff’s opposition to that motion has yet to pass. 4 II. Legal Standard for Motions to Dismiss 5 The familiar standards on a motion to dismiss apply here. To survive a motion to 6 dismiss under Rule 12(b)(6), “a complaint must contain sufficient factual matter, accepted 7 as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 8 662, 678 (2009) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). Thus, 9 the Court “accept[s] factual allegations in the complaint as true and construe[s] the 10 pleadings in the light most favorable to the nonmoving party.” Manzarek v. St. Paul Fire 11 & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). On the other hand, the Court is 12 “not bound to accept as true a legal conclusion couched as a factual allegation.” Iqbal, 556 13 U.S. at 678 (quoting Twombly, 550 U.S. at 555). Nor is the Court “required to accept as 14 true allegations that contradict exhibits attached to the Complaint or matters properly 15 subject to judicial notice, or allegations that are merely conclusory, unwarranted deductions 16 of fact, or unreasonable inferences.” Daniels-Hall v. Nat’l Educ. Ass’n, 629 F.3d 992, 998 17 (9th Cir. 2010). “In sum, for a complaint to survive a motion to dismiss, the non-conclusory 18 factual content, and reasonable inferences from that content, must be plausibly suggestive 19 of a claim entitling the plaintiff to relief.” Moss v. U.S. Secret Serv., 572 F.3d 962, 969 (9th 20 Cir. 2009) (quotation marks omitted). 21 III. Discussion 22 The complaint asserts five claims, each of which arise out of Plaintiff’s apparent 23 belief that the recorded assignments and substitutions of trustee on the Deed of Trust on 24 the Property were invalid or void rendering the foreclosure sale wrongful and void. The 25 five claims in the complaint are: (1) wrongful foreclosure against US Bank and Summit; 26 (2) quiet title against US Bank; (3) cancelation of instruments against all defendants; (4) 27 violation of California’s unfair competition law (“UCL”) against all defendants; and (5) 28 slander of title against all defendants. Each of Plaintiff’s claims are predicated on her 1 position that MERS lacked authority to assign the Deed of Trust to BAC Home Loans 2 Servicing, meaning all subsequent assignments and substitutions were ineffectual and the 3 beneficiary and trustee unchanged from the original Deed of Trust. Thus, according to 4 Plaintiff, US Bank and Summit had no interest in the Deed of Trust or promissory note and 5 no right to foreclose on the Property. US Bank and Summit each move to dismiss all claims 6 against them for failure to state a claim. 7 A. Wrongful Foreclosure 8 “The elements of a wrongful foreclosure cause of action are: (1) The trustee or 9 mortgagee caused an illegal, fraudulent, or willfully oppressive sale of real property 10 pursuant to a power of sale in a mortgage or deed of trust; (2) the party attacking the sale 11 (usually but not always the trustor or mortgagor) was prejudiced or harmed; and (3) in 12 cases where the trustor or mortgagor challenges the sale, the trustor or mortgagor tendered 13 the amount of the secured indebtedness or was excused from tendering.” Sciarratta v. U.S. 14 Bank Nat’l Assn., 247 Cal. App. 4th 552, 561–62 (Cal. Ct. App. 2016) (internal quotation 15 marks and citation omitted). US Bank and Summit argue that the complaint does not 16 adequately allege any of these elements. 17 1.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Bartlett v. Strickland
556 U.S. 1 (Supreme Court, 2009)
Daniels-Hall v. National Education Ass'n
629 F.3d 992 (Ninth Circuit, 2010)
Glaski v. Bank of America CA5
218 Cal. App. 4th 1079 (California Court of Appeal, 2013)
Manzarek v. St. Paul Fire & Marine Insurance
519 F.3d 1025 (Ninth Circuit, 2008)
Moss v. U.S. Secret Service
572 F.3d 962 (Ninth Circuit, 2009)
People v. Stier
168 Cal. App. 4th 21 (California Court of Appeal, 2008)
Kachlon v. Markowitz
168 Cal. App. 4th 316 (California Court of Appeal, 2008)
Orcilla v. Big Sur, Inc.
244 Cal. App. 4th 982 (California Court of Appeal, 2016)
Cherie Morgan v. Aurora Loan Services
646 F. App'x 546 (Ninth Circuit, 2016)
Sciarratta v. U.S. Bank National Ass'n
247 Cal. App. 4th 552 (California Court of Appeal, 2016)
Priet v. Hubert
62 Cal. 9 (California Supreme Court, 1882)
Sharon v. Sharon
16 P. 345 (California Supreme Court, 1888)
Debrunner v. Deutsche Bank National Trust Co.
204 Cal. App. 4th 433 (California Court of Appeal, 2012)
Herrera v. Federal National Mortgage Ass'n
205 Cal. App. 4th 1495 (California Court of Appeal, 2012)
Lopez v. Smith
203 F.3d 1122 (Ninth Circuit, 2000)
Lee v. City of Los Angeles
250 F.3d 668 (Ninth Circuit, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
King v. U.S. Bank Trust, N.A. as Trustee for LSF9 Master Participation Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-v-us-bank-trust-na-as-trustee-for-lsf9-master-participation-casd-2019.