Patricia H. Lee v. Ecclesia, LLC

District Court, C.D. California·Decided August 11, 2020·No. 2:19-cv-01691·Unknown

Opinion

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8 United States District Court 9 Central District of California

11 PATRICIA H. LEE, Case № 2:19-cv-01691-ODW (JPRx)

12 Plaintiff, ORDER DENYING MOTION TO 13 v. VACATE ORDER GRANTING 14 ECCLESIA, LLC et al., DEFENDANTS’ MOTION TO 15 DISMISS [74] Defendants. 16 17 19 This lawsuit is the fourth in a series of wrongful foreclosure actions brought by 20 Plaintiff Patricia H. Lee. In this action, on June 28, 2019, the Court granted 21 Defendants CitiMortgage, Inc., Mortgage Electronic Registration Systems, Inc. 22 (“MERS”), CR Title Services, Inc. (“CR Title”), and Lisa Markham’s Motion to 23 Dismiss as unopposed. (Order Granting Mot. to Dismiss (“June 28, 2019 Order”), 24 ECF No. 30.) One year later, on June 28, 2020, Plaintiff filed the present motion to 25 vacate the June 28, 2019 Order under Federal Rule of Civil Procedure 26 (“Rule”) 60(b)(1), for mistake, inadvertence, or excusable neglect (“Motion”). (See 27 Mot. to Vacate (“Mot.”), ECF No. 74.) For the reasons below, the Court DENIES 28 Plaintiff’s Motion to Vacate the June 28, 2019 Order. 2 In 2002, Plaintiff Patricia H. Lee and non-parties Patricia G. Lee and 3 Gwendolyn P. Lee borrowed $314,071 from Realty Mortgage Corporation dba Mylor 4 Financial (“Mylor”), secured by a deed of trust (“DOT”) recorded against property at 5 11513 Berendo Avenue, Los Angeles, California (the “Property”). (Compl. ¶¶ 4, 6 11–12, Ex. 1 (“DOT”), ECF No. 1.) The DOT designated MERS as the nominee 7 beneficiary for Mylor and its assignees. (Compl. ¶ 12; DOT.) After Plaintiff and the 8 Lees defaulted on the loan in 2010, MERS assigned the DOT to CitiMortgage, which 9 substituted CR Title as trustee. (See Compl. ¶¶ 16, 19; Defs.’ Req. Judicial Notice 10 (“RJN”) Exs. 3 (“Assignment”), 4 (“Substitution”), 5 (“Notice of Default”), ECF 11 No. 6.1) Markham, Assistant Vice President of MERS and CitiMortgage, executed the 12 Assignment and the Substitution. (Compl. ¶¶ 17, 19.) CR Title recorded a notice of 13 default and election to sell the Property and sold the Property at a trustee’s sale on 14 February 14, 2012. (Compl. ¶¶ 31, 34, 39; Notice of Default; RJN Exs. 6 (“Notice of 15 Trustee’s Sale”), 7 (“Trustee’s Deed Upon Sale”).) 16 Between 2012 and 2015, Plaintiff brought three actions in California Superior 17 Court for claims related to the allegedly wrongful assignment and foreclosure of the 18 Property. (See Compl. ¶ 44; Lee v. CitiMortgage, Inc. et al., No. BC482312 (Cal. 19 Super. Ct. filed April 5, 2012) (“Lee I”); RJN Ex. 10 (“Lee I First Am. Compl. 20 (‘FAC’)”); Compl. ¶ 53; Lee v. CitiMortgage, Inc. et al., No. BC502785 (Cal. Super. 21 Ct. filed March 12, 2013) (“Lee II”); RJN Ex. 13 (“Lee II Compl.”); Compl. ¶ 63; Lee 22 1 With Defendants’ motion to dismiss, they requested judicial notice (“RJN”) of certain public 23 records and documents from judicial proceedings. (See RJN.) The record does not reflect that Plaintiff objected to Defendants’ RJN; indeed, Plaintiff has, at times, relied on the documents therein 24 in her own papers. (See Decl. of Patricia H. Lee, ECF No. 15.) Judicial notice of the documents is 25 appropriate as they are either referenced in the Complaint or publicly recorded documents whose accuracy cannot reasonably be questioned (RJN Exs. 1–7), or are pleadings or orders in judicial 26 proceedings with a direct relation to the matter here (RJN Exs. 8–19). See Fed. R Evid. 201(b); United States v. Black, 482 F.3d 1035, 1041 (9th Cir. 2007) (discussing that judicial notice of 27 proceedings in other courts is appropriate where “those proceedings have a direct relation to matters 28 at issue”); Grant v. Aurora Loan Servs., Inc., 736 F. Supp. 2d 1257, 1264 (C.D. Cal. 2010) (collecting cases granting judicial notice of documents recorded by the County Recorder’s Office). 1 v. CitiMortgage, Inc. et al., No. BC592107 (Cal. Super. Ct. filed Aug. 20, 2015) 2 (“Lee III”); RJN Ex. 17 (“Lee III FAC”).) Each action resulted in dismissal with 3 prejudice. (See RJN Ex. 11 (“Lee I Dismissal Order”); RJN Ex. 14 (“Lee II Order”); 4 RJN Ex. 18 (“Lee III Dismissal Order”); RJN Ex. 19 (“Lee III Affirmance”) 4.) On 5 October 17, 2018, the California Court of Appeal affirmed the Judgment in Lee III. 6 (Compl. ¶ 75; Lee III Affirmance 9.) 7 On March 7, 2019, Plaintiff filed the present action in federal court against 8 Defendants CitiMortgage, MERS, CR Title, Markham, and Ecclesia, LLC (a 9 subsequent purchaser of the property). (See Compl. ¶¶ 5–9.) Plaintiff’s claims all 10 stem from the assignment and foreclosure of the Property at issue in Lee I, Lee II, and 11 Lee III. (Compare Compl. with Lee I FAC, Lee II Compl., and Lee III FAC.) 12 On April 11, 2019, Defendants CitiMortgage, MERS, CR Title, and Markham 13 (“Defendants”2) moved to dismiss Plaintiff’s Complaint, arguing that her claims were 14 barred by res judicata. (See Mot. to Dismiss (“MTD”), ECF No. 5.) Plaintiff filed an 15 untimely opposition on May 8, 2019. (Opp’n MTD, ECF No. 14.) Plaintiff’s 16 untimely opposition did not substantively address Defendants’ res judicata arguments. 17 (See Opp’n MTD.) On May 14, 2019, the Court took Defendants’ motion under 18 submission on the papers. (ECF No. 18.) Two days later, Plaintiff filed a 19 supplemental declaration explaining she had miscalculated her deadline to oppose. 20 (Suppl. Decl. Patricia H. Lee, ECF No. 19.) On June 28, 2019, the Court granted 21 Defendants’ motion to dismiss as unopposed. (June 28, 2019 Order.)3 22 One year later, on June 28, 2020, Plaintiff filed the present Motion to vacate the 23 June 28, 2019 Order under Rule 60(b)(1), on grounds that her failure to timely oppose 24 Defendants’ motion to dismiss was the result of mistake, inadvertence, or excusable 25 26

2 For the purposes of this Order, “Defendants” as defined does not include Defendant Ecclesia. 27 3 Nine months later, on March 20, 2020, the Court granted the only remaining Defendant, Ecclesia’s 28 Motion for Judgment on the Pleadings (“MJOP”) and entered Judgment. (Order Granting MJOP, ECF No. 72; J., ECF No. 73.) 1 neglect. (Notice of Mot. 2, ECF No. 74.) Plaintiff’s Motion is fully briefed, and the 2 Court heard argument from the parties on August 3, 2020. 4 Rule 60(b)(1) authorizes a court to relieve a party from an order or judgment 5 where the order or judgment is a result of the party’s mistake, inadvertence, surprise, 6 or excusable neglect. See Fed. R. Civ. P. 60(b)(1). A party seeking relief under Rule 7 60(b)(1) must file a noticed motion “within a reasonable time,” not to exceed one year 8 after entry of the order. Fed. R. Civ. P. 60(c)(1). “The proper application of Rule 9 60(b) strikes a balance between serving the ends of justice and preserving the finality 10 of judgments.” Stewart v. Wachowski, 574 F. Supp. 2d 1074, 1118 (C.D. Cal. 2005). 12 Plaintiff’s Motion is untimely, and her proffered grounds do not amount to 13 mistake, inadvertence, or excusable neglect under Rule 60(b)(1). Further, vacating the 14 June 28, 2019 Order would be futile, as Plaintiff’s claims are barred by res judicata. 15 A. “Within a Reasonable Time” 16 A Rule 60(b)(1) motion “must be made within a reasonable time” and in no 17 event longer than one year after the order was entered. Fed. R. Civ. P. 60(c)(1).

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