The opinion of the court was delivered by: Dennis L. Beck United States Magistrate Judge
ORDER REGARDING PLAINTIFFS' MOTION FOR REMAND TO STATE COURT AND/OR IN THE ALTERNATIVE TO ALLOW AMENDMENT OF COMPLAINT TO CLARIFY THAT DAMAGES ARE SOUGHT AGAINST DEFENDANT CAL-WESTERN
On October 9, 2009, Plaintiffs Cameron Lawrence and Marion Singer ("Plaintiffs") filed the instant motion to remand the action to state court and/or in the alternative to allow amendment of the complaint and to remand. The matter was heard on January 29, 2010, before the Honorable Dennis L. Beck, United States Magistrate Judge. B. Matteoni appeared telephonically on behalf of Plaintiffs. Robert Shaw appeared telephonically on behalf of Defendant Aurora Loan Services LLC.
Plaintiffs filed the underlying action in Tuolumne County Superior Court on August 6, 2009. The complaint named Aurora Loan Services, LLC, Cal-Western Reconveyance Corporation and Does 1 through 100 as Defendants. The complaint asserted eleven causes of action with regard to certain real property located in Tuolumne County, California.
On August 27, 2009, Defendant Cal-Western Reconveyance Corporation ("Cal-Western"), the foreclosure trustee, filed a declaration of non-monetary status pursuant to California Civil Code § 2924l in the state court action. Exhibit 3 to Notice of Removal.
On September 9, 2009, Defendant Aurora Loan Services LLC ("Aurora"), a citizen of Delaware, removed the action to this Court on the basis of diversity jurisdiction. In the Notice of Removal, Aurora asserted that the citizenship of Cal-Western was irrelevant for purposes of diversity because it filed a declaration of non-monetary status.
On September 16, 2009, Aurora filed a motion to dismiss the complaint with prejudice. On October 9, 2009, Plaintiffs filed a First Amended Complaint ("FAC") against Defendants. The FAC asserts causes of action to set aside the trustee's sale and to cancel the trustee's deed against all Defendants, recovery of damages for wrongful foreclosure against Cal-Western, fraud against Aurora, negligent misrepresentation against Aurora, negligence against Aurora and Cal-Western, quiet title against Aurora, an accounting, breach of the contract of good faith and fair dealing, and injunctive relief.
On October 9, 2009, Plaintiffs also filed the instant motion to remand and/or to allow amendment of the complaint to clarify that damages are sought against Cal-Western.
On November 9, 2009, the parties stipulated to continue the hearing on the motion to remand until January 29, 2009, due to settlement negotiations.
Aurora filed an opposition to the remand motion on January 12, 2010. Plaintiffs filed a reply on January 21, 2010.
ALLEGATIONS AND CAUSES OF ACTION
According to the FAC, Plaintiff Cameron Lawrence acquired property in Groveland, California, in December 1997. Thereafter, he and Plaintiff Marion Singer married and used community property to pay the mortgage and other property expenses. The property is used as a vacation home.
In July 2006, Plaintiff Lawrence refinanced the home with a loan from First Magnus Financial Corporation in the approximate amount of $230,000. The loan was secured by a deed of trust on the property to which First Magnus was the beneficiary, Alliance Title was the trustee and Plaintiff Lawrence was the trustor. Cal-Western subsequently was substituted as the trustee. After July 2006, Plaintiffs believe that First Magnus assigned its ...