The opinion of the court was delivered by: Irma E. Gonzalez, Chief Judge United States District Court
ORDER GRANTING DEFENDANTS' MOTION TO DISMISS PLAINTIFFS' THIRD AMENDED COMPLAINT EMC [Doc. No. 42]
Presently before the Court is the motion to dismiss Plaintiffs Harriet Davidson and KAP CA, LLC'S (collectively, "Plaintiffs") Third Amended Complaint filed by Defendants Countrywide Home Loans, Inc. ("CHL"); BAC Home Loans Servicing, LP ("BAC"); Mortgage Electronic Registration System, Inc.; Landsafe Title Corporation; and ReconTrust Company, N.A.'s (collectively, "Defendants"). [Doc. No. 42.]
This motion is suitable for disposition without oral argument pursuant to Local Civil Rule 7.1(d)(1). For the reasons stated herein, the CourtGRANTS Defendants' motion to dismiss.
The factual background for this case is set out in the Court's July 23, 2010, Order and will not be repeated herein. [Doc. No. 32.]
Davidson initiated this action on December 2, 2009. Defendants moved to dismiss. The Court granted-in-part and denied-in-part Defendants' motion. [Doc. No. 23.]
Davidson filed a First Amended Complaint ("FAC"), in which she added KAP as a Plaintiff. Defendants again moved to dismiss, and the Court granted-in-part and denied-in-part Defendants' motion. [Doc. No. 32.] Plaintiffs filed a Second Amended Complaint. The parties jointly moved for leave for Plaintiffs to file a Third Amended Complaint ("TAC") to add necessary parties and claims. The Court granted the parties' motion. [Doc. No. 41.] Plaintiffs filed the TAC. [Doc. No. 42.]
Plaintiffs' TAC alleges the following causes of action against the moving Defendants: Violations of 12 U.S.C. §§ 2604 and 2605(e) of the Real Estate Settlement Procedures Act ("RESPA"); Violation of the Truth in Lending Act ("TILA"), 15 U.S.C. § 1601 et seq.; Fraud in the Inducement; Violation of California's Unfair Competition Law ("UCL"), Cal. Bus. & Prof. Code § 17200 et seq.; Equitable Wrongful Foreclosure; Cancellation of Trust Deeds; Quiet Title, Cal Civil Procedure Code §§ 760.020, 760.030, and 761.020.*fn1
a.Federal Rule of Civil Procedure 12 (b)(6)
A complaint must contain "a short and plain statement of the claim showing that the pleader is entitled to relief." FED. R. CIV. P. 8(a). A motion to dismiss pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure tests the legal sufficiency of the claims asserted in the complaint. FED. R. . P. 12(b)(6); Navarro v. Block, 250 F.3d 729, 731 (9th Cir. 2001). The court must accept all factual allegations pleaded in the complaint as true, and must construe them and draw all reasonable inferences from them in favor of the nonmoving party. Cahill v. Liberty Mutual Ins. Co., 80 F.3d 336, 337-38 (9th Cir.1996). To avoid a Rule 12(b)(6) dismissal, a complaint need not contain detailed factual allegations, rather, it must plead "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim has "facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Ashcroft v. Iqbal, --- U.S. ---, 129 S. Ct. 1937, 1949 (2009) (citing Twombly, 550 U.S. at 556).
However, "a plaintiff's obligation to provide the 'grounds' of his 'entitle[ment] to relief' requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do." Twombly, 550 U.S. at 555 (quoting Papasan v. Allain, 478 U.S. 265, 286 (1986)) (alteration in original). A court need not accept "legal conclusions" as true. Iqbal, 129 S. Ct. at 1949. In spite of the deference the court is bound to pay to the plaintiff's allegations, it is not proper for the court to assume that "the [plaintiff] can prove facts that [he or she] has not alleged or that defendants have violated the . . . laws in ways that have not been alleged." Associated Gen. Contractors of Cal., Inc. v. Cal. State Council of Carpenters, 459 U.S. 519, 526 (1983). "Where a complaint pleads facts that are 'merely consistent with' a defendant's liability, it 'stops short of the line between possibility and plausibility of entitlement to relief.'" Iqbal, 129 S. Ct. at 1949 (quoting Twombly, 550 U.S. at
Additionally, defenses based on relevant statutes of limitations may be raised on a Rule 12(b)(6) motion to dismiss when the statute's running is apparent on the face of the complaint. Jablon v. Dean Witter & Co., 614 F.2d 677, 682 (9th Cir. 1980).
For a Rule 12(b)(6) motion, a court generally cannot consider material outside the complaint.
Branch v. Tunnell, 14 F.3d 449, 453-54 (9th Cir. 1994), overruled on other grounds by Galbraith v. County of Santa Clara, 307 F.3d 1119 (9th Cir. 2002). A court may, however, consider exhibits submitted with the complaint. Van Winkle v. Allstate Ins. Co., 290 F. Supp. 2d 1158, 1162 n.2 (C.D. Cal. 2003). In addition, a "court may consider evidence on which the complaint 'necessarily relies' if:
(1) the complaint refers to the document; (2) the document is central to the plaintiff's claim; and (3) no party questions the authenticity of the copy attached to the 12(b)(6) motion." Marder v. Lopez, 450 F.3d 445, 448 (9th Cir. 2006). A court may treat such a document as "part of the complaint, and thus may assume that its contents are true for purposes of a motion to dismiss under Rule 12(b)(6)." United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003). A court may disregard allegations in the complaint if they are contradicted by facts established by exhibits attached to the complaint. Durning ...