United States District Court, N.D. California, San Jose Division
ORDER GRANTING MOTIONS TO DISMISS
LABSON FREEMAN United States District Judge.
action arises out of foreclosure proceedings initiated after
Plaintiff Michael Boyd (“Boyd”) defaulted on two
loans secured by two properties, one in Soquel, California
and one in Sunnyvale, California. Pending before the Court
are motions to dismiss filed by Defendants Governor Jerry
Brown (“Governor Brown”), Director of Finance
Michael Cohen (“Director Cohen”), Attorney
General Kamala Harris (“Attorney General
Harris”), State Controller Betty Yee (“Controller
Yee”), and the United States. Boyd has also requested a
notice of lis pendens in this action. ECF 115. For the
reasons stated herein, the Court GRANTS each motion to
dismiss and DENIES the request for notice of lis pendens.
provide background in this case, the following facts are
taken from Boyd's initially filed complaint and the first
amended complaint. However, the instant motions are evaluated
based solely on Verified Amended First Amended Complaint
(“AFAC”), the operative complaint in this case.
2006, Boyd obtained loans secured by mortgages on a property
located on Lakebird Drive in Sunnyvale, California and
another property located on Soquel Drive in Soquel,
California (the “Properties”). Compl. ¶ 9,
ECF 1; AFAC ¶ 77, ECF 93. At some point thereafter, Boyd
defaulted on the two loans, leading to recording of notices
of default and initiation of foreclosure proceedings. Compl.
¶ 10. GMAC, a defendant named in Boyd's initial
complaint but no longer named in the AFAC, serviced the loans
until servicing was transferred to Ocwen Loan Servicing LLC.
Id. ¶¶ 5, 9.
this time period, the United States and forty-nine states
sued several mortgage loan servicers in the U.S. District
Court for the District of Columbia in March 2012. Ex. 1 to
Compl. 93, ECF 1-1; AFAC ¶¶ 9, 10. The suit was
resolved through a settlement agreement known as the
“National Mortgage Settlement.” AFAC ¶¶
10-13, 27. According to Boyd, pursuant to this settlement,
the mortgage loan servicers agreed to pay approximately $5
billion and institute various reforms. Id. ¶
12. The State of California received approximately $410
million from the settlement and placed its share of the
settlement funds into the National Mortgage Special Deposit
Fund. Id. ¶¶ 12-13.
2014, some community groups filed a petition for writ of
mandate in the Sacramento County Superior Court alleging that
California's portion of the settlement had been
improperly diverted from the Special Deposit Fund and used
for purposes not allowed by the terms of the consent
judgment. Id. ¶¶ 3, 10, 13. The Sacramento
Court agreed and found that approximately $331 million had
been unlawfully diverted from the Special Deposit Fund to the
State of California's General Fund. Id.
¶¶ 10, 13, 76.
on these lawsuits, Boyd alleges that United States and
California state government defendants
“victimized” loan borrowers “in concert
with GMAC.” Id. ¶¶ 3, 9. Boyd also
alleges that he owns the Properties in fee simple based on
theories involving a third-party beneficiary relationship and
the federal land patent proceeding of 1851. Id.
¶¶ 5, 6, 16-18, 30.
29, 2015, Boyd filed the instant action against United States
Department of the Treasury, Treasury Secretary Jack Lew,
Governor Edmund G. Brown, Jr., Attorney General Kamala D.
Harris, Department of Finance Director Michael Cohen, State
Controller Betty Yee, GMAC Mortgage LLC, and Mortgage
Electronic Registration Systems. Compl. On August 3, 2015,
Boyd voluntarily dismissed GMAC Mortgage LLC and Mortgage
Electronic Registration Systems. ECF 3. On August 15, 2016,
this Court granted Defendants' motions to dismiss with
leave to amend. The grounds for dismissal included lack of
Article III standing, Eleventh Amendment immunity, sovereign
immunity, and insufficiency of the allegations to state a
claim, and Boyd was allowed to substitute United States as a
defendant in place of United States Treasury and Jack Lew.
ECF 76. Boyd subsequently moved for leave to amend to add
“Quiet Title” as an additional cause of action,
which this Court granted. ECF 81, 90. Boyd then filed the
AFAC on November 1, 2017, which Defendants now move to
motion to dismiss under Rule 12(b)(1) challenges whether a
court has subject matter jurisdiction to hear the action. In
deciding a Rule 12(b)(1) motion, the court is not restricted
to the pleadings, but can also “review any evidence,
such as affidavits and testimony, to resolve factual disputes
regarding the evidence of jurisdiction.” McCarthy
v. United States, 850 F.2d 558, 560 (9th Cir. 1988).
Once subject matter jurisdiction is challenged, the party
opposing the motion bears the burden of establishing
jurisdiction. See, e.g., Chandler v. State Farm
Mut. Auto Ins. Co., 598 F.2d 1115, 1122 (9th Cir. 2010).
motion to dismiss under Rule 12(b)(6) concerns what facts a
plaintiff must plead on the face of his claim. Under Rule
8(a)(2) of the Federal Rules of Civil Procedure, a complaint
must include “a short and plain statement of the claim
showing that the pleader is entitled to relief.” Any
complaint that does not meet this requirement can be
dismissed pursuant to Rule 12(b)(6). In interpreting Rule
8(a)'s “short and plain statement”
requirement, the Supreme Court has held that a plaintiff 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), which requires that
“the plaintiff plead factual content that allows the
court to draw the reasonable inference that the defendant is
liable for the misconduct alleged.” Ashcroft v.
Iqbal, 556 U.S. 662, 678 (2009). This standard does not
ask a plaintiff to plead facts that suggest he will probably
prevail, but rather “it asks for more than a sheer
possibility that a defendant has acted unlawfully.”
Id. (internal quotation marks omitted). The Court
must “accept factual allegations in the complaint as
true and construe the pleadings in the light most favorable
to the nonmoving party.” Manzarek v. St. Paul Fire
& Marine Ins. Co., 519, F.3d 1025, 1031 (9th Cir.
Controller Yee's ...