Vien Phuong Thi Ho v. Nationstar Mortgage, LLC

District Court, C.D. California·Decided December 29, 2020·No. 2:19-cv-10532·Unknown

Opinion

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2 3 4 5 6 7

8 United States District Court 9 Central District of California

11 VIEN PHUONG THI HO, Case № 2:19-cv-10532-ODW (JPRx)

12 Plaintiff, ORDER GRANTING

13 v. DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS 14 NATIONSTAR MORTGAGE, LLC, et [60] al., 15 Defendants. 16 17 I. INTRODUCTION 18 Pro se Plaintiff Vien Phuong Thi Ho brings this action for, among other things, 19 fraudulent lending and debt collection practices against Defendants Nationstar 20 Mortgage, LLC d/b/a Mr. Cooper (additionally sued erroneously as Nationstar 21 Mortgage Holdings Inc., and Mr. Cooper Group Inc.) (“Nationstar”); HSBC Bank USA, 22 N.A. (additionally sued erroneously as HSBC Bank USA, N.A. CTLA HSBC Bank 23 USA Corp Trust and Loan Agency) (“HSBC”); Mortgage Electronic Registration 24 Systems, Inc. (“MERS”); and Affinia Default Services, LLC (“Affinia”) (collectively, 25 “Defendants”). (See Compl., ECF No. 1.) Nationstar, HSBC, and MERS filed a joint 26 Answer to the Complaint on February 14, 2020. (Nationstar Answer, ECF No. 33.) 27 Affinia filed its Answer to the Complaint on February 21, 2020. (Affinia Answer, ECF 28 No. 43.) 1 Presently before the Court is a Motion for Judgment on the Pleadings filed by 2 Nationstar, HSBC, and MERS.1 (Mot. J. Pleadings (“Motion” or “Mot.”), ECF No. 60.) 3 Ho opposes the Motion, (Opp’n, ECF No. 66), and Defendants did not file a reply brief. 4 As explained below, Defendants’ Motion is GRANTED, and Ho’s Complaint is 5 DISMISSED with leave to amend.2 6 II. REQUEST FOR JUDICIAL NOTICE 7 Defendants request that the Court take judicial notice of two case dockets 8 downloaded from PACER for the following cases: (1) Ho v. Bank of America N.A., 9 No. 2:10-cv-00741 (C.D. Cal.) (“Countrywide Action”); and (2) In re Ho, No. 2:10-bk- 10 42200-RN (Bankr. C.D. Cal.) (“Bankruptcy Action”). (Req. Judicial Notice (“RJN”) 2, 11 ECF No. 61.) A court may take judicial notice of court filings and other matters of 12 public record. Harris v. Cnty. of Orange, 682 F.3d 1126, 1132 (9th Cir. 2012) (noting 13 that a court may take judicial notice of “undisputed matters of public record”); Reyn’s 14 Pasta Bella, LLC v. Visa USA, Inc., 442 F.3d 741, 746 n.6 (9th Cir. 2006) (taking 15 judicial notice of pleadings, memoranda, and other court filings); see also United States 16 v. Black, 482 F.3d 1035, 1041 (9th Cir. 2007) (noting judicial notice of proceedings in 17 other courts is proper “if those proceedings have a direct relation to matters at issue.”). 18 Also, the Court “may take judicial notice on its own.” Fed. R. Evid. 201(c)(1). 19 Here, the Court finds that the documents and orders filed in the prior actions cited 20 above “have a direct relation to matters at issue” in this case. Black, 482 F.3d at 1041. 21 Thus, only to the extent the Court relies on any filings or orders in the prior actions cited 22 above, the Court hereby takes judicial notice of those documents. The Court does not, 23 however, take judicial notice of reasonably disputed facts in the judicially noticed 24 documents. Lee v. City of Los Angeles, 250 F.3d 668, 688–89 (9th Cir. 2001). 25 26 27 1 Affinia joins in the Motion. (Affinia Joinder Mot., ECF No. 62.) 28 2 After carefully considering the papers filed in connection with the Motions, the Court deemed the matters appropriate for decision without oral argument. Fed. R. Civ. P. 78; C.D. Cal. L.R. 7-15. 1 III. BACKGROUND 2 On or around June 23, 2007, Ho borrowed $548,000 (the “Loan”) to refinance 3 real property located in Long Beach, California (the “Subject Property”), which she 4 secured by a Deed of Trust. (See Compl. ¶¶ 16–18, Ex. A (“Deed of Trust” or “DOT”).) 5 The DOT lists: Countrywide Bank, FSB (“Countrywide”) as the lender; ReconTrust 6 Company, N.A. (“ReconTrust”) as the trustee; and MERS as the beneficiary. (Id. 7 Ex. A.) In November 2010, MERS assigned the DOT to HSBC via a corporate 8 assignment. (Id. Ex. B.) 9 In February 2010, after ReconTrust sent Ho a notice of default on the Loan, Ho 10 initiated the Countrywide Action against Bank of America, N.A. (“BofA”), 11 Countrywide, and ReconTrust, asserting twenty-one claims related to the origination, 12 servicing, and foreclosure of the Loan. See Countrywide Action, Dkt. No. 1.3 After 13 multiple amendments, Ho’s claims were eventually dismissed with prejudice in the 14 Countrywide Action. See id., Dkt. Nos. 35, 46, 47, 55. 15 On January 11, 2011, while the Countrywide Action was still pending, the U.S. 16 Bankruptcy Court for the Central District of California granted Ho a Chapter 7 17 Discharge of all prior debts, including the Loan. (Compl. ¶ 19, Ex. C.) 18 In 2017, the Ninth Circuit affirmed dismissal of the claims in the Countrywide 19 Action with the exception of Ho’s TILA rescission claim, which was remanded to the 20 district court. See Countrywide Action, Dkt. No. 75. On remand, BofA moved for 21 summary judgment on the remaining TILA claim, and on December 14, 2018, the 22 parties in the Countrywide Action agreed to a joint stipulation of dismissal with 23 prejudice. See id., Dkt. Nos. 131, 138. 24 25

26 3 In the Countrywide Action, Ho asserted claims for violations of the Fair Debt Collection Practices Act (“FDCPA”), the Truth in Lending Act (“TILA”), the Racketeer Influenced and Corrupt 27 Organizations Act (“RICO”), California’s Unfair Competition Law (“UCL”), and Ho’s civil rights, as 28 well as claims for fraud, negligence, quiet title, conspiracy, unjust enrichment, and injunctive and declaratory relief. See Countrywide Action, Dkt. No. 1. 1 Meanwhile, in December 2013, Ho received a letter from Nationstar explaining 2 that BofA transferred the servicing of her Loan to Nationstar. (Compl. Ex. 1.) Later, 3 in October 2019, on Nationstar’s behalf, Affinia issued Ho a Notice of Default and 4 Election to Sell Under Deed of Trust relating to the Subject Property. (Id. Ex. E 5 (“Notice”).) The Notice explains that Affinia is “either the original trustee, the duly 6 appointed substituted trustee, or acting as agent for the trustee or beneficiary under a 7 Deed of Trust dated 06/23/2007, executed by [Ho] . . . to secure certain obligations in 8 favor of [MERS] as nominee for Countrywide Bank, FSB, its successors and assigns.” 9 (Id.) 10 Now, Ho alleges that the Notice “was falsely recorded in favor of an ‘imaginary 11 loan’ created by [D]efendants in 2013 which was never executed by [P]laintiff with 12 [D]efendants.” (Id. ¶ 21.) Specifically, Ho claims that “[b]eginning in early 2013 and 13 continuing to 2019 . . . Nationstar . . . initiated a mortgage scam and illegal scheme to 14 collect a discharged debt and/or resurrect a mortgage debt that formerly discharged two 15 years earlier and/or settled with [Countrywide].” (Id. ¶ 22.) Based on these allegations, 16 Ho asserts various causes of action alleging that Defendants engaged in various 17 fraudulent lending and collection schemes, and she seeks a total of $12,110,000 in 18 damages. (See Id. at 48–49; see also Ho’s Mot. J. Pleadings 6–8, ECF No. 53 19 (clarifying the gravamen of Ho’s Complaint).) Defendants move for judgment on the 20 pleadings. (See generally Mot.) 21 IV. LEGAL STANDARD 22 After the pleadings are closed, but within such time as to not delay the trial, any 23 party may move for judgment on the pleadings. Fed. R. Civ. P. 12(c).

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