United States District Court, N.D. California
RAYMOND W. LOU, Plaintiff,
JP MORGAN CHASE BANK N.A., et al., Defendants.
ORDER GRANTING CHASE'S MOTION TO DISMISS AND
PLAINTIFF'S COUNSEL'S MOTION TO WITHDRAW RE: DKT.
NOS. 8, 37
WILLIAM H. ORRICK, UNITED STATES DISTRICT JUDGE
Raymond Lou filed this wrongful foreclosure action in
California Superior Court against JPMorgan Chase Bank, N.A.
(“Chase”), U.S. Bank Trust, N.A. (“U.S.
Bank”), Chase Home Finance LLC, Summit Management
Company, LSF9 Master Participating Trust, and Caliber Home
Loans, Inc. (“Caliber”), asserting violations of
California's Homeowner's Bill of Rights and Unfair
Competition Law, and seeking to quiet title. Shortly after
defendants removed the action to this court, Chase filed a
motion to dismiss the claims against it because it had
assigned the loan to U.S. Bank and transferred servicing to
Caliber well before initiation of the foreclosure
proceedings. Lou fails to address Chase's arguments and
includes no allegations that Chase has any interest in his
loan or was involved in its servicing at the time of default.
Chase's motion is GRANTED. Because these deficiencies
cannot be resolved with amendment, his claims against Chase
are DISMISSED WITH PREJUDICE.
counsel has since filed a motion to withdraw as attorney
because there has been a breach of the retainer agreement and
a “complete breakdown in communications[.]”
Artinian Decl. ¶ 2. The motion and declaration were
served on Lou, as well as defense counsel. No opposition has
been filed. I GRANT conditional withdrawal in accordance with
Civil Local Rule 11-5(b). Papers may continue to be served on
counsel for forwarding purposes unless and until the client
appears by other counsel or pro se. Counsel shall notify Lou
of this condition.
matters are appropriate for resolution without argument and
the hearings are VACATED. Civil L. R. 7-1(b).
November 2006, Lou obtained a $650, 000 mortgage loan from
JPMorgan Chase Bank, N.A. (“Chase”) secured by a
Deed of Trust (“DOT”) against the real property
located at 3237 Montevideo Drive, San Ramon, California,
94583. Compl. ¶ 15 (Dkt. No. 1-1 at 8); see DOT
(Compl., Ex. A; Dkt. No. 1-1 at 19). The DOT authorizes the
lender (Chase) to sell the borrower's loan without prior
notice, and it grants the transferee the power to enforce the
associated promissory note and DOT. DOT ¶ 20 (Dkt. No.
1-1 at 29).
December 2014, Chase assigned “all beneficial
interest” in the DOT to U.S. Bank Trust, N.A.
(“US Bank”), as trustee for LSF9 Master
Participation Trust (“the Trust”). Compl. ¶
18; see Assignment of DOT (Compl., Ex. C; Dkt. No.
1-1 at 42). In 2015, Chase substituted Summit Management
Company LLC (“Summit”) as the foreclosure
trustee. Compl. ¶ 19; Substitution of Trustee (Compl.,
Ex. D; Dkt. No. 1-1 at 46).
January 2017, Caliber commenced foreclosure proceedings
against the property by recording a Notice of Default
(“NOD”) with the Contra Costa County Recorder.
Compl. ¶ 20; NOD (Compl., Ex. E; Dkt. No. 1-1 at 49).
The NOD indicated that Lou had defaulted on his loan payments
starting in September 2016, with a defaulted amount of $9,
682.16 as of January 6, 2017. NOD (Dkt. No. 1-1 at 49-50). In
April 2017, a Notice of Trustee's Sale
(“NOTS”) was recorded, and in May Summit
foreclosed the property. Compl. ¶ 22.
21, 2017, Lou filed this action in California Superior Court
against Chase, Caliber, U.S. Bank, the Trust, and
Summit. See Compl. He alleges that all
defendants violated the Homeowner's Bill of Rights,
specifically California Civil Code sections 2923.55 and
2924.12(b), and that all defendants violated California'
Unfair Competition Law (“UCL”), Bus. & Prof.
Code § 17200, et seq., and he seeks to quiet title
against Chase. See generally Compl.
21, 2017, defendant Caliber removed the action to federal
court. See Notice of Removal (Dkt. No. 1).