(PS) Love v. Tri-Counties Bank

District Court, E.D. California·Decided February 10, 2025·No. 2:22-cv-01761·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 MARY LOVE, No. 2:22-cv-01761-TLN-CKD PS 12 Plaintiff, 13 v. FINDINGS AND RECOMMENDATIONS 14 TRI-COUNTIES BANK, 15 Defendant. 16

17 18 Plaintiff Mary Love paid the filing fee and filed this civil action on October 6, 2022. 19 Plaintiff initially had counsel, but counsel withdrew on September 8, 2023. (ECF No. 21.) 20 Plaintiff proceeds in this matter pro se. This matter is before the undersigned pursuant to 28 21 U.S.C. § 636(b)(1) and Local Rule 302(c)(21). 22 Presently before the Court is defendant Tri-Counties Bank’s motion for attorney’s fees. 23 (ECF No. 43.) The Court took the matter under submission without oral argument because 24 plaintiff failed to file an opposition under Local Rule 230(c); the Court ordered plaintiff to file an 25 opposition within fourteen days. (ECF No. 48.) Plaintiff filed her opposition on July 2, 2024. 26 (ECF No. 51.) Defendant filed its reply on July 12, 2024. (ECF No. 52.) For the reasons set 27 forth below, defendant’s motion should be GRANTED. 28 //// 1 I. Procedural and Factual Background 2 Plaintiff filed a complaint against defendant alleging causes of action under the Real 3 Estate Settlement Procedures Act, 12 U.S.C. § 2605(k); the California Consumer Credit 4 Reporting Agencies Act, California Civil Code § 1785.25(a); California Civil Code § 2925; 5 Cancellation of Recorded Instruments; the Business and Professions Code, § 17200; Negligence, 6 and Declaratory Relief. (ECF No. 1.) Plaintiff alleges that she owns real property in Nevada 7 City, California, encumbered by a deed of trust held by Carrington Mortgage. (Id. at 3, ¶¶ 15, 8 17.) Defendant’s motion for attorney’s fees alleges that in 2011, defendant entered into a 9 purchase and sale agreement with the FDIC. (ECF No. 43-1 at 5.) The FDIC took over Citizens 10 Bank of Northern California, and one of the assets was a home equity line of credit to plaintiff 11 secured by her Nevada County Property (“Loan”). (Id.; ECF No. 43-3 at 36.) Defendant 12 acquired Citizens Bank of Northern California’s interest in plaintiff’s loan. (ECF No. 43-3 at 2, 13 ¶ 6 (Declaration of Ron Scribner), 36.) Defendant attached six exhibits to its motion, including a 14 credit agreement and disclosure, a deed of trust, change in terms to the credit agreement, 15 modification to the deed of trust, and an assignment of the deed of trust. (Id. at 2-3, Exhs. 1-6.) 16 The initial Credit Agreement and Disclosure was executed on December 23, 2005 between 17 plaintiff1 and Citizens Bank of Nevada County. (Id. at 6 (Exh. 1).) 18 In July or August of 2015, plaintiff obtained a home equity line of credit from defendant 19 that was secured by a junior deed of trust against her Nevada County property. (ECF No. 1 at 20 ¶ 19.) Plaintiff was attempting to modify her loan with defendant when defendant allegedly 21 issued a 1099-C in the approximate amount of $174,953.44 that relieved plaintiff’s obligation on 22 the equity line of credit. (Id. ¶¶ 22, 26.) Despite this release of debt, defendant continued to 23 demand payment from plaintiff and continued to report on plaintiff’s credit report that she was 24 responsible for the allegedly forgiven debt. (Id. at 4, ¶ 27.) Defendant filed a notice of default 25 against plaintiff’s residence seeking to initiate foreclosure proceedings. (Id. ¶ 31.) Plaintiff 26

27 1 Some of the documents attached to defendant’s motion have the name “Visitacion B. Lupton” or “Mary Vistacion Bassig Love.” Neither party contests the names on the documents or contest 28 that the named party is not plaintiff. 1 alleges that the 1099-C cancelled her debt and released her from personal liability on the loan. 2 (Id. at 5 ¶ 38.) Defendant reported that plaintiff was liable for the loan and that there was an 3 outstanding balance which continued to grow. (Id. ¶¶ 40, 41.) 4 As the litigation proceeded, defendants indicated that they had not received plaintiff’s 5 verified responses to their written discovery demands. After two informal discovery conferences 6 with the court, the parties filed a joint statement in which plaintiff’s counsel agreed that responses 7 were required but that plaintiff was uncooperative in their production. (ECF Nos. 15, 16, 17, 18.) 8 After a third informal discovery conference plaintiff’s counsel filed a motion to withdraw on 9 August 2, 2023 (ECF Nos. 19, 20), which was granted (ECF No. 21). The district judge assigned 10 to the matter ordered plaintiff to provide notice about whether she was going to obtain new 11 counsel or proceed pro se. (ECF No. 21.) Plaintiff was warned that if she did not provide notice, 12 her case could be subject to dismissal, or the Court would assume she was proceeding pro se. 13 (Id.) On October 31, 2023, the district judge issued a minute order reflecting plaintiff’s failure to 14 file notice regarding counsel and determining that plaintiff was therefore proceeding pro se.2 15 (ECF No. 23.) 16 On November 2, 2023, the undersigned issued an order for plaintiff to show cause why the 17 case should not be dismissed for failure to prosecute and failure to comply with court orders. 18 (ECF No. 24.) On November 15, 2023, plaintiff filed a response to the order to show cause. 19 (ECF Nos. 25.) On November 28, 2023, the Court discharged the order to show cause over 20 defendant’s objections but ordered plaintiff to verify her discovery responses and provide 21 defendant all documents within her possession, custody, or control within 14 days. (ECF No. 28.) 22 Plaintiff was cautioned that failure to comply with the court’s order could result in a 23 recommendation that this case be dismissed. (Id.) 24 Plaintiff informed the Court that she did not provide discovery responses to defendant, but 25 instead sent them to the court, but that they were returned to her. (ECF No. 30.) On January 3, 26 2024, the Court recommended dismissing plaintiff’s case for failure to prosecute. (ECF No. 31.) 27 2 As plaintiff was proceeding pro se, the matter was referred to the undersigned pursuant to 28 28 U.S.C. § 636(b)(1) and Local Rule 302(c)(21). 1 As the court noted in its Findings and Recommendations, issued more than fifteen months after 2 plaintiff commenced the action,

3 The plaintiff has informed the court that she did not provide 4 discovery responses to defendant, but instead sent them to the court, but that they were returned to her. (ECF No. 30.) Further, plaintiff 5 requests a “one-month extension to find an affordable attorney” and recover from an illness. (Id.) However, plaintiff has not claimed 6 that her illness prevented her from complying with the court’s order. Further, the fact that plaintiff sent her discovery responses to 7 the court suggests that her failure to meet her discovery obligations 8 is not due to illness, but rather her failure to follow instructions.

9 Id. at 2. 10 Notably, although plaintiff filed objections to the findings and recommendations, she did 11 not provide the discovery responses at issue. (ECF Nos. 31, 32, 33.) The District Judge adopted 12 the findings and recommendations, and a judgment issued on May 3, 2024. (ECF Nos. 36, 37.) 13 Plaintiff filed a notice of appeal to the Ninth Circuit on May 29, 2024. (ECF No. 38.) 14 Defendant filed the instant motion for attorney’s fees on June 3, 2024. (ECF No. 43.) 15 The motion is fully briefed. (ECF No. 51, 52.) 16 II. Legal Standards 17 Under the American Rule, the prevailing party is ordinarily not entitled to collect 18 reasonable attorney’s fees from the losing party. Travelers Cas. & Sur. Co. of Am. v. Pac. Gas & 19 Elec.

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