(PS) Halajian v. JP Morgan Chase Bank, NA

CourtDistrict Court, E.D. California
DecidedJanuary 22, 2024
Docket2:23-cv-01522
StatusUnknown

This text of (PS) Halajian v. JP Morgan Chase Bank, NA ((PS) Halajian v. JP Morgan Chase Bank, NA) 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
(PS) Halajian v. JP Morgan Chase Bank, NA, (E.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 BARRY STUART HALAJIAN, No. 2:23-cv-1522 DJC DB PS 12 Plaintiff, 13 v. ORDER 14 JP MORGAN CHASE BANK, NA, et al., 15 Defendants, 16 17 Plaintiff Barry Stuart Halajian is proceeding in this action pro se. This matter was 18 referred to the undersigned in accordance with Local Rule 302(c)(21) and 28 U.S.C. § 636(b)(1). 19 Pending before the undersigned are defendants’ motions to dismiss pursuant to Rules 12(b)(1), 20 12(b)(6), and 12(b)(7) of the Federal Rules of Civil Procedure, defendant’s motion to strike 21 plaintiff’s sur-reply, and plaintiff’s motion for a temporary restraining order. (ECF Nos. 7, 22, 22 24, 28.) For the reasons stated below, defendants’ motions to dismiss will be granted, plaintiff 23 will be granted leave to file an amended complaint, and plaintiff’s motion for a temporary 24 restraining order will be denied. 25 BACKGROUND 26 Plaintiff, proceeding pro se, commenced this action on July 25, 2023, by filing a 27 complaint and paying the applicable filing fee. (ECF No. 1.) The complaint alleges that plaintiff 28 //// 1 was an electrical contractor. (Compl. (ECF No. 1) at 3.1) “BAY ADVANCE, LLC . . . used a 2 bait and switch sales tactic to persuade Plaintiff to enter into the receivables sales agreement, 3 which was actually a disguised loan agreement.” (Id.) Instead of the “agreed amount of 4 $60,000,” plaintiff only received $42,000. (Id. at 6.) The terms of the contract require plaintiff to 5 pay $89,000 “for the cash advance” with “interest greater than 50%.” (Id. at 14.) 6 Plaintiff made “seven regular payments of three thousand dollars . . . before it was no 7 longer possible to make these payments[.]” (Id. at 24.) Defendants Hasset & George, PC and 8 James Trudell, “prepared a document known as the NOTICE OF PREJUDGMENT 9 REMEDY/CLAIM FOR HEARING TO DISSOLVE OR MODIFY.” (Id. at 2.) This resulted in 10 a seizure of money from plaintiff’s bank account held by defendant JP Morgan Chase Bank, NA, 11 “JP Morgan”. (Id. at 2.) Also named as a defendant is Elizabeth Ostrowski “an employee of the 12 Connecticut State Marshals Service.” (Id. at 16.) 13 Pursuant to these allegations the complaint alleges claims for declaratory and injunctive 14 relief, “Deprivation of Rights Under Color of Authority” pursuant to 42 U.S.C. § 1983, breach of 15 the covenant of good faith and fair dealing, and cancellation of instruments. (Id. at 16-23.) The 16 complaint asks this court to declare the notice of prejudgment remedy void, and order JP Morgan 17 to release to plaintiff $75,000 “that they seized and placed in an administrative hold.” (Id. at 25.) 18 Plaintiff also seeks punitive damages against defendants Trudell and Ostrowski in the amount of 19 $100,000. (Id.) 20 On August 18, 2023, defendant JP Morgan Chase filed a motion to dismiss. (ECF No. 7.) 21 Plaintiff filed an opposition on September 8, 2023. (ECF No. 13.) Defendant filed a reply on 22 September 18, 2023. (ECF No. 14.) On October 6, 2023, plaintiff filed a sur-reply. (ECF No. 23 21.) On October 11, 2023, defendant filed an objection and motion to strike plaintiff’s sur-reply.2 24 (ECF No. 22.)

25 1 Page number citations such as this one are to the page number reflected on the court’s CM/ECF system and not to page numbers assigned by the parties. 26 2 The filing of a sur-reply is not authorized by the Federal Rules of Civil Procedure or the Local 27 Rules. See Fed. R. Civ. P. 12; Local Rule 230. Nonetheless, in light of plaintiff’s pro se status, the undersigned has considered the sur-reply in evaluating defendants’ motions to dismiss. 28 Defendant’s motion to strike the sur-reply (ECF No. 22) will, therefore, be denied. 1 On October 13, 2023, defendants Hasset & George PC and James Trudell filed a motion 2 to dismiss. (ECF No. 24.) On October 20, 2023, plaintiff filed a motion for a temporary 3 restraining order. (ECF No. 28.) On October 25, 2023, plaintiff filed an opposition to 4 defendants’ motion to dismiss. (ECF No. 30.) On October 26, 2023, defendants filed oppositions 5 to plaintiff’s motion for a temporary restraining order. (ECF Nos. 31 & 32.) 6 On November 2, 2023, defendants Hasset & George, PC, and James Trudell filed a reply 7 in support of their motion to dismiss. (ECF No. 33.) On November 3, 2023, defendant Elizabeth 8 Ostrowski filed an opposition to plaintiff’s motion for a temporary restraining order. (ECF No. 9 34.) On November 29, 2023, plaintiff filed a reply to defendant Ostrowski’s opposition. (ECF 10 No. 36.) The parties’ motions were taken under submission without a hearing pursuant to Local 11 Rule 230(g).3 12 STANDARDS 13 I. Legal Standards Applicable to Motions to Dismiss Pursuant to Rule 12(b)(1) 14 Federal Rule of Civil Procedure 12(b)(1) allows a defendant to raise the defense, by 15 motion, that the court lacks jurisdiction over the subject matter of an entire action or of specific 16 claims alleged in the action. “A motion to dismiss for lack of subject matter jurisdiction may 17 either attack the allegations of the complaint or may be made as a ‘speaking motion’ attacking the 18 existence of subject matter jurisdiction in fact.” Thornhill Publ’g Co. v. Gen. Tel. & Elecs. Corp., 19 594 F.2d 730, 733 (9th Cir. 1979). 20 When a party brings a facial attack to subject matter jurisdiction, that party contends that 21 the allegations of jurisdiction contained in the complaint are insufficient on their face to 22 demonstrate the existence of jurisdiction. Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 23 (9th Cir. 2004). In a Rule 12(b)(1) motion of this type, the plaintiff is entitled to safeguards 24 similar to those applicable when a Rule 12(b)(6) motion is made. See Sea Vessel Inc. v. Reyes, 25 23 F.3d 345, 347 (11th Cir. 1994); Osborn v. United States, 918 F.2d 724, 729 n. 6 (8th Cir. 26 1990). The factual allegations of the complaint are presumed to be true, and the motion is granted 27 3 Defendant JP Morgan’s September 26, 2023 request to appear remotely at the hearing of the 28 motions (ECF No. 15) will, therefore, be denied as having been rendered moot. 1 only if the plaintiff fails to allege an element necessary for subject matter jurisdiction. Savage v. 2 Glendale Union High Sch. Dist. No. 205, 343 F.3d 1036, 1039 n. 1 (9th Cir. 2003); Miranda v. 3 Reno, 238 F.3d 1156, 1157 n. 1 (9th Cir. 2001). Nonetheless, district courts “may review 4 evidence beyond the complaint without converting the motion to dismiss into a motion for 5 summary judgment” when resolving a facial attack. Safe Air for Everyone, 373 F.3d at 1039. 6 When a Rule 12(b)(1) motion attacks the existence of subject matter jurisdiction, no 7 presumption of truthfulness attaches to the plaintiff’s allegations. Thornhill Publ’g Co., 594 F.2d 8 at 733. “[T]he district court is not restricted to the face of the pleadings, but may review any 9 evidence, such as affidavits and testimony, to resolve factual disputes concerning the existence of 10 jurisdiction.” McCarthy v. United States,

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(PS) Halajian v. JP Morgan Chase Bank, NA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ps-halajian-v-jp-morgan-chase-bank-na-caed-2024.