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Deschaine v. Indymac Mortgage Services

Citation: 617 F. App'x 690Docket: No. 14-15345

Court: Court of Appeals for the Ninth Circuit; June 17, 2015; Federal Appellate Court

Narrative Opinion Summary

In this case, the appellate court reviewed the district court's dismissal of various claims brought by the plaintiff, Deschaine, against the defendant, IndyMac. Deschaine alleged negligent and intentional misrepresentation, breach of contract, promissory estoppel, and other claims related to the handling of his mortgage loan and modification process. The court found that Deschaine failed to meet the heightened pleading standards for misrepresentation and did not adequately demonstrate how IndyMac breached express or implied obligations. His reliance on oral statements for promissory estoppel was deemed unreasonable, and his negligence claim was dismissed as IndyMac owed no common law duty of care beyond its role as a lender. Deschaine's statutory claims under California Civil Code sections 2923.6, 2923.7, and 2924 were dismissed due to procedural shortcomings and lack of standing. Additionally, his claims under the California Unfair Competition Law were found insufficiently pleaded. The court also upheld the dismissal of Deschaine's wrongful foreclosure claim due to a lack of tender and denied his request to amend the complaint a third time, affirming the district court's decision on all counts. The disposition was deemed unsuitable for publication and without precedential value.

Legal Issues Addressed

Breach of Contract and Implied Obligations

Application: The court found that Deschaine did not provide sufficient factual allegations to support a breach of contract claim against IndyMac under the Workout Agreement or U.S. Treasury directives.

Reasoning: The dismissal of Deschaine's breach of contract claim was justified. He did not provide factual allegations indicating that IndyMac failed to meet its express obligations under the Workout Agreement or implied obligations under U.S. Treasury directives.

California Business and Professions Code Section 17200 (UCL)

Application: Deschaine failed to plead a plausible cause of action under UCL, leading to the dismissal of his claims.

Reasoning: California Business and Professions Code Section 17200 (UCL): Deschaine’s UCL claims were dismissed because he did not adequately plead a plausible cause of action.

California Civil Code Section 2923.6

Application: Deschaine's claim under Section 2923.6 was dismissed because he forfeited his right to appeal further denials of loan modifications after defaulting.

Reasoning: Lastly, Deschaine's claim of a violation of California Civil Code section 2923.6 was also dismissed. He argued that he did not receive a denial letter or an appeal opportunity for his loan modification request.

Denial of Leave to Amend Complaint

Application: The court denied Deschaine's request to amend his complaint as he failed to show how the defects in his claims could be remedied.

Reasoning: The court denied Deschaine's request to amend his complaint for a third time as he failed to show how he could remedy the defects in his claims.

Heightened Pleading Standards for Misrepresentation

Application: Deschaine's claims of negligent and intentional misrepresentation were dismissed due to insufficient detail about the alleged statements from IndyMac representatives.

Reasoning: Deschaine's claims of negligent and intentional misrepresentation were properly dismissed due to insufficient detail regarding the alleged statements from IndyMac representatives, failing to meet the heightened pleading standards.

Lender's Duty of Care in Loan Modifications

Application: The court rejected Deschaine's negligence claim as IndyMac acted within the conventional role of a lender and owed no common law duty of care to Deschaine in the loan modification process.

Reasoning: Furthermore, Deschaine's negligence claim was dismissed on the grounds that IndyMac did not owe him a common law duty of care regarding the loan modification process, as its actions were within the conventional role of a lender.

Promissory Estoppel and Reasonableness of Reliance

Application: Deschaine's promissory estoppel claim was dismissed as he relied on an oral statement which was deemed unreasonable given the existing written notices.

Reasoning: The district court's dismissal of Deschaine's promissory estoppel claim was upheld due to a lack of a clear and unambiguous promise from IndyMac for a permanent HAMP loan modification.

Standing to Challenge Deed of Trust Transfers

Application: Deschaine lacked standing to contest the alleged fraudulent transfer of his deed of trust, aligning with the court's interpretation in Fontenot v. Wells Fargo Bank.

Reasoning: Deschaine lacked standing to contest the alleged fraudulent transfer of his deed of trust. Citing Fontenot v. Wells Fargo Bank, the court noted that even if a deed was fraudulently transferred, it was unlikely to prejudice the borrower.

Tender Rule in Wrongful Foreclosure

Application: Deschaine's wrongful foreclosure claim was dismissed due to his failure to demonstrate an unambiguous tender of the entire amount owed.

Reasoning: Wrongful Foreclosure: Deschaine did not demonstrate an unambiguous tender of the entire amount owed, which is a prerequisite under California's tender rule to challenge a foreclosure.