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Jamey L. Nastrom v. New Century Mortgage Corporation

June 8, 2012

JAMEY L. NASTROM;
M. HEWTON-NASTROM,
PLAINTIFFS,
v.
NEW CENTURY MORTGAGE CORPORATION, ET AL.,
DEFENDANTS.



The opinion of the court was delivered by: Dennis L. Beck United States Magistrate Judge

ORDER GRANTING DEFENDANTS' MOTION TO DISMISS (Documents 12 and 22)

AMENDED COMPLAINT DUE WITHIN SIXTY (60) DAYS

Defendants JPMorgan Chase Bank, N.A., individually and as successor by merger to Chase Home Finance LLC, JPMorgan Chase Custody Services, Inc., Mortgage Electronic Registration Systems, Inc., and Federal Home Loan Mortgage Corporation filed a motion to dismiss on February 13, 2012. Defendant Deutsche Bank National Trust Company filed a motion to dismiss on March 2, 2012. The motions were heard on May 25, 2012, before the Honorable Dennis L. Beck, United States Magistrate Judge. Golareh Mahdavi appeared telephonically on behalf of the moving defendants. Plaintiffs Jamey L. Nastrom and Kim M. Hewton-Nastrom also appeared.

BACKGROUND

Plaintiffs Jamey L. Nastrom and Kim Hewton-Nastrom ("Plaintiffs"), proceeding pro se, filed the instant action on November 22, 2011. Plaintiffs' complaint seeks damages related to foreclosure on real property against Defendants JP Morgan Chase Bank, Chase Home Finance LLC, New Century Mortgage Corporation, Mortgage Electronic Registration Systems Inc., Deutsche Bank National Trust Company, JP Morgan Chase Custody Services, Inc., and Federal Home Loan Mortgage Corporation.

On February 13, 2012, Defendants JPMorgan Chase Bank, N.A., individually and as successor by merger to Chase Home Finance LLC, JPMorgan Chase Custody Services, Inc., Mortgage Electronic Registration Systems, Inc., and Federal Home Loan Mortgage Corporation filed the instant motion to dismiss the complaint without leave to amend. Doc. 12. On March 2, 2012, Defendant Deutsche Bank National Trust Company also filed a motion to dismiss. Doc. 22. With the exception of New Century Mortgage Corporation, which filed a notice of bankruptcy on April 19, 2012, all defendants (collectively "Defendants") are represented by the same legal counsel. As the pending motions to dismiss are nearly identical, they are treated as a single motion.

On April 30, 2012, Plaintiffs opposed the motion to dismiss. Doc. 36. Defendants replied on May 18, 2012. Doc. 39.

FACTUAL ALLEGATIONS*fn1

Plaintiffs are the recorded owners of property located at 103 C. Street in Empire, California. Plaintiffs allege that the property is in foreclosure. Doc. 1, p. 3.

On May 25, 2005, Plaintiffs executed two loans with lender New Century Mortgage Corporation ("New Century") for $184,000 ("First") and $46,000 ("Second"). The loans are secured by Deeds of Trust recorded against the property. Exhibits A and B to Request for Judicial Notice ("RJN").

On June 9, 2005, Magda Villanueva, A.V.P./Shipping Manager for New Century executed an Assignment of the First Deed of Trust to Chase Home Finance LLC. The assignment was notarized by alleged "known ro-bo notary Andres Rojas" and recorded on August 7, 2007. Doc. 1, p. 3. Also, on June 9, 2005, Magda Villanueva executed an Assignment of the Second Deed of Trust to Deutsche Bank National Trust Company. Exhibit C to RJN. The assignment was notarized by Marisa G. Carrasco, an alleged "known robo-signer," and recorded on July 11, 2007. Doc. 1, pp. 2-3.

On July 2, 2007, Plaintiffs executed an additional loan with JPMorgan Chase Bank, N.A., in the amount of $195,000. Exhibit E to RJN.

On July 23, 2007, a Substitution of Trustee and Deed of Reconveyance was executed and the first Deed of Trust was extinguished. Exhibit F to RJN.

Plaintiffs allege two causes of action: (1) violation of the Racketeer Influenced and Corrupt Practices Act ("RICO"); and (2) fraud.

DISCUSSION

A. Legal Standard

"The focus of any Rule 12(b)(6) dismissal . . . is the complaint." Schneider v. California Dept. of Corr., 151 F.3d 1194, 1197 n.1 (9th Cir. 1998). In considering a motion to dismiss for failure to state a claim, the court must accept as true the allegations of the complaint in question, Hospital Bldg. Co. v. Trustees of Rex Hospital, 425 U.S. 738, 740 (1976), construe the pleading in the light most favorable to the party opposing the motion, and resolve all doubts in the pleader's favor. Jenkins v. McKeithen, 395 U.S. 411, 421 (1969).

The federal system is one of notice pleading. Galbraith v. County of Santa Clara, 307 F.3d 1119, 1126 (9th Cir. 2002). 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). Detailed factual allegations are not required, but "[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice." Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937');">129 S. Ct. 1937, 1949 (2009) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007)). Plaintiffs must set forth "sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.'" Id. (quoting Twombly, 550 U.S. at 555). While factual allegations are accepted as true, legal conclusions are not. Id.

B. Analysis

1. ...


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