KENDALL J. NEWMAN, Magistrate Judge.
Presently before the court is plaintiff's
Generally, this case involves plaintiff's loans and attempted loan modifications relating to several of plaintiff's pieces of real property, and plaintiff's default on some of those loans. Plaintiff sued the banks or other entities that made, acquired, serviced, or refused to modify the loans, and which ultimately attempted to foreclose on some of the properties. Plaintiff's 113-page First Amended Complaint alleged the following claims for relief against defendants: (1) fraud; (2) violation of the Consumer Legal Remedies Act, Cal. Civ. Code §§ 1750 et seq.; (3) violation of the Unfair Competition Law, Cal. Bus. & Prof. Code §§ 17200 et seq.; (4) false advertising, Cal. Bus. & Prof. Code §§ 17500 et seq.; (5) violation of California Civil Code § 2943; (6) wrongful foreclosure proceedings; (7) quiet title; (8) unfair debt collection practices under state and federal law; (9) Racketeer Influenced and Corrupt Organizations ("RICO") violations, 18 U.S.C. §§ 1961 et seq.; and (10) negligent misrepresentation and negligence. (
On August 1, 2011, the court adopted findings and recommendations filed by the undersigned and dismissed some of plaintiff's claims with leave to amend and others with prejudice. (
Remaining unsatisfied with the court's ruling, plaintiff sought reconsideration of the court's order addressing plaintiff's first motion for reconsideration, arguing that the court committed "clear error" in its analysis of HOLA preemption (Dkt. No. 59). After considering supplemental briefing, the court denied plaintiff's motion for reconsideration of the denial of plaintiff's first motion for reconsideration. (Order, Mar. 29, 2012, Dkt. No. 87.)
Meanwhile, plaintiff filed a Second Amended Complaint and later filed a motion for leave to filed a Third Amended Complaint (Dkt. No. 89) before the court could resolve defendants' motion to dismiss the Second Amended Complaint. The undersigned denied plaintiff's motion for leave to amend without prejudice based on the deficiencies in the proposed Third Amended Complaint. The undersigned granted plaintiff leave to file another motion for leave to amend no later than June 28, 2012, and has held the motion to dismiss the Second Amended Complaint in abeyance pending resolution of plaintiff's motion for leave to amend. (Order, May 14, 2012, Dkt. No. 92;
Meanwhile, plaintiff filed the pending motion for entry of judgment pursuant to Rule 54(b). Plaintiff wants to file an interlocutory appeal of the dismissal of plaintiff's wrongful foreclosure and quiet title claims as preempted by HOLA. It also appears that plaintiff wants to appeal the court's denial of plaintiff's request for judicial notice.
Generally, parties may only appeal from, and appellate courts only have jurisdiction over, "final decisions of the district courts."
The United States Supreme Court has provided a two-step framework for evaluating Rule 54(b) motions. First, a district court must "determine that it is dealing with a `final judgment,'" in that the court has rendered a "a decision upon a cognizable claim for relief" that is "an ultimate disposition of an individual claim entered in the course of a multiple claims action."
Second, if the court finds that it is dealing with a "final judgment," the court must then "determine whether there is any just reason for delay," taking into account "judicial administrative interests as well as the equities involved."
Plaintiff requests the entry of judgment as to his wrongful foreclosure and quiet title claims so that he may file an interlocutory appeal as to those claims and a related request for judicial notice. The court denies plaintiff's motion because there is just reason for delay.
In regards to the first step of the required analysis, the court is dealing with a "final judgment" for the purposes of Rule 54(b). The court dismissed plaintiff's wrongful foreclosure and quiet title claims with prejudice, and denied plaintiff's related motions for reconsideration. The question, then, is whether there is any just reason for delay.
In regards to the second step of the required analysis, the undersigned concludes that there are just reasons for delay. First, as a general matter, plaintiff's interlocutory appeal of two of his potential thirteen claims, based on nothing more than plaintiff's preference to file an appeal now, violates the long-standing federal policy against piecemeal appeals. Plaintiff's appeal will multiply the number of proceedings for the Ninth Circuit Court of Appeals and overcrowd that court's already overcrowded docket. Additionally, it is all but certain that plaintiff will file an appeal at the conclusion after entry of a final judgment in this case if he is at all unsuccessful in this litigation given plaintiff's persistence in filing motions for reconsideration of this court's orders. Although plaintiff is surely entitled to seek reconsideration of this court's orders, his practice of doing so strongly suggests that plaintiff will appeal any adverse decision. Furthermore, nothing suggests that Wells Fargo would not appeal a judgment adverse to it, in which case plaintiff could file a cross-appeal if desirable. The policies against piecemeal appeals and the near inevitability of successive appeals in this case favor denial of plaintiff's motion.
Second, plaintiff has identified no "pressing need" militating in favor of obtaining an early and separate judgment as to his wrongful foreclosure and quiet title claims. Instead, it readily appears that plaintiff simply still disagrees with the undersigned's and the district judge's multiple analyses of the HOLA preemption issue relative to his wrongful foreclosure and quiet title claims. At most, plaintiff believes that a ruling by the Court of Appeals might impact many foreclosures cases proceeding in the district courts. But that could be said of any number of cases percolating through the courts, and plaintiff's argument in this regard misses the mark.
Third, despite plaintiff's statement that his wrongful foreclosure and quiet title claims are severable, the claims under review are not truly separable from the other remaining claims that will be adjudicated. There is substantial factual overlap between plaintiff's wrongful foreclosure and quiet title claims and the remaining claims, many of which challenge defendants' right to foreclose on plaintiff's properties. The Court of Appeals would have to sift through plaintiff's complaints to understand plaintiff's claims, only to re-review the same morass of facts in any subsequent appeal. Additionally, plaintiff has already forecasted in his proposed Third Amended Complaint that he intends to pursue some manner of wrongful foreclosure claim if permitted to amend, proposing to add claims entitled "Preempted/Unlawful Foreclosure" and "Improper Foreclosure Process." Therefore, if permitted to appeal at this time, it appears that plaintiff will be challenging defendants' right to foreclose, and the foreclosure process, on parallel tracks in this court and in the Court of Appeals. The similarity of factual issues, and potentially similar legal issues, "weighs heavily" against plaintiff's motion.
Finally, in terms of the equities involved, plaintiff relies on the court's balancing of the equities attendant to the issuance of a preliminary injunction in this case and the parties' relative "worth," asserting that "defendant's worth is more than 1.25 million times greater that [sic] plaintiff's worth." (Pl.'s Memo. of P. & A. In Supp. of Rule 54(b) Mot. at 8-9.) As Wells Fargo correctly contends, the parties' relative worth is entirely irrelevant to the resolution of the pending motion. And the court's balancing of equities in determining whether to enter a preliminary injunction to prevent the impending foreclosure and sale of plaintiff's property (
At bottom, there are ample reasons to require that plaintiff appeal the court's dismissal of his wrongful foreclosure and quiet title claims in the normal course. As a result, the court denies plaintiff's Rule 54(b) motion.
Accordingly, IT IS HEREBY ORDERED that plaintiff's motion to direct the entry of judgment as to his wrongful foreclosure and quiet title claims pursuant to Federal Rule of Civil Procedure 54(b) (Dkt. No. 91) is denied.