JILL A. OTAKE, District Judge.
Plaintiffs Marcelino Mendoza Aquino and Jeanette Donia Aquino ("Plaintiffs") bring claims against Defendant Deutsche Bank Trust Company Americas ("Deutsche Bank") and Defendant Cody Minatodani ("Commissioner Minatodani"). Deutsche Bank and Commissioner Minatodani ask the Court to abstain from exercising jurisdiction over this action or, alternatively, to dismiss the Complaint under Federal Rules of Civil Procedure ("FRCP") Rule 12(b)(6). For the reasons stated below, the motions are GRANTED.
Plaintiffs owned property in Wailuku, Hawai'i. ECF No. 1 ("Compl.") ¶¶ 3-4; ECF No. 1-3, Ex. C.
Plaintiffs first sought relief in state court in February 2019, asking the state court to vacate its summary judgment order pursuant to Rule 60(b) of the Hawai'i Rules of Civil Procedure based on newly discovered evidence of fraud, and seeking dismissal of the case. Compl. ¶¶ 4-6; ECF Nos. 1 to 4, Exs. A-D. Plaintiffs also wrote to Commissioner Minatodani in June 2019 asking that she not proceed with an auction of the property scheduled for July 24, 2019. Compl. ¶¶ 4-6; ECF No. 1-4, Ex. D.
A few days before that scheduled auction, on July 22, 2019, Plaintiffs filed this federal action. ECF No. 1. Their Complaint nominally references 42 U.S.C. § 1983, the False Claims Act ("FCA"), and the Fair Debt Collection Practices Act ("FDCPA"). Id. They allege Defendants violated their civil rights by depriving them of a right to a jury trial and appeal in the state court action. Id. ¶¶ 3, 5. Plaintiffs object to Commissioner Minatodani proceeding with an auction before the state court ruled on their motion to vacate, and further object that she did not respond to their June 2019 letter asking her not to proceed with the auction. Id. ¶¶ 4, 6-7, 10. Plaintiffs allege Deutsche Bank does not have proper documentation to prove it holds the original promissory note for Plaintiffs' mortgage. Id. ¶ 7. Plaintiffs seek damages, as well as attorney's fees and costs. Compl. at 6. Plaintiffs also ask the Court to "stop the foreclosure action and [Defendants] from selling the Plaintiffs' property." Id.
When Plaintiffs filed their Complaint, they also filed an ex parte petition for injunctive relief and a temporary restraining order that asked the Court to enjoin the sale of the property. ECF No. 3. The Court held a hearing on Plaintiffs' request for emergency relief that same day. ECF No. 10. The Court denied Plaintiffs' motion, concluding it lacked jurisdiction because Plaintiffs' request to enjoin the sale of the property amounted to a de facto appeal of the state court judgment, which was barred under the Rooker-Feldman doctrine.
Defendants now move separately to dismiss Plaintiffs' Complaint. Deutsche Bank asks the Court to abstain from exercising jurisdiction under the Younger abstention doctrine, also arguing the Complaint fails to state a claim against it. ECF No. 15. Commissioner Minatodani moves separately, raising the same arguments as Deutsche Bank but also arguing that, as a Commissioner appointed by the state court, she is entitled to quasi-judicial immunity. ECF No. 13. Plaintiffs, representing themselves, oppose both motions. ECF No. 31; ECF No. 32.
Rule 12(b)(6) allows an attack on the pleadings for failure to state a claim on which relief can be granted. "[W]hen ruling on a defendant's motion to dismiss, a judge must accept as true all of the factual allegations contained in the complaint." Erickson v. Pardus, 551 U.S. 89, 94 (2007) (citing Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555-56 (2007)). However, a court is "not bound to accept as true a legal conclusion couched as a factual allegation." Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 555). "Nor does a complaint suffice if it tenders `naked assertion[s]' devoid of `further factual enhancement.'" Id. (alteration in original) (quoting Twombly, 550 U.S. at 557). A complaint must "state a claim to relief that is plausible on its face." Twombly, 550 U.S. at 570. This means that the complaint must plead "factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Iqbal, 556 U.S. at 678 (citing Twombly, 550 U.S. at 556). There must be "sufficient allegations of underlying facts to give fair notice and to enable the opposing party to defend itself effectively," and "factual allegations that are taken as true must plausibly suggest an entitlement to relief, such that it is not unfair to require the opposing party to be subjected to the expense of discovery and continued litigation." Starr v. Baca, 652 F.3d 1202, 1216 (9th Cir. 2011).
Both Defendants first ask the Court to abstain from exercising jurisdiction over the case and order dismissal under Younger v. Harris, 401 U.S. 37 (1971). In civil cases, Younger abstention is appropriate where a state court proceeding: (1) is ongoing; (2) is a quasi-criminal enforcement action or involves a state's interest in enforcing the orders and judgments of its courts; (3) implicates important state interests; (4) provides an adequate opportunity to raise federal challenges; and (5) would be enjoined by the federal court action or where the federal proceeding would have the practical effect of doing so. See Rynearson v. Ferguson, 903 F.3d 920, 924 (9th Cir. 2018). "Each of these requirements must be `strictly met.'" Id. (quoting AmerisourceBergen Corp. v. Roden, 495 F.3d 1143, 1148 (9th Cir. 2007)).
Because neither Defendant addresses the second element, the Court declines to dismiss the Complaint under Younger at this time.
Plaintiffs' Complaint nominally references three types of federal claims: FDCPA violations, False Claims Act violations, and civil rights violations under § 1983. Plaintiffs' reference to these statutes is insufficient to state a claim because Plaintiffs fail to explain what allegations support each violation (or, for example, which of the myriad provisions of the FDCPA they allege Defendants violated). Because Plaintiffs are representing themselves, the Court will nonetheless address whether Plaintiffs have stated a claim based on the allegations they appear to connect to each statute.
As to Commissioner Minatodani, Plaintiffs' FDCPA claim appears to be based on her failure to respond to their June 2019 letter asking her not to proceed with the auction until the state court ruled on their motion to vacate. Compl. ¶ 7. Plaintiffs fail to explain how this constitutes a violation of the FDCPA. "[W]hile the FDCPA regulates security interest enforcement activity, it does so only through Section 1692f(6).[
To the extent Plaintiffs' claim is premised on Commissioner Minatodani proceeding with the auction pursuant to the state court's order and judgment, any such claim would also be barred by the doctrine of quasi-judicial immunity. Commissioner Minatodani, as a court-appointed foreclosure commissioner, acted as an arm of the court and served a function essential to the judicial process and so is entitled to immunity. See, e.g., New Alaska Dev. Corp. v. Guetschow, 869 F.2d 1298, 1302-04 (9th Cir. 1989) (concluding state court-appointed receivers are entitled to immunity); Sakuma v. Ass'n of Apartment Owners of the Tropics at Waikele, CIVIL NO. 16-00274 DKW-KJM, 2016 WL 6433842, at *9 n.5 (D. Haw. Oct. 28, 2016) (stating court-appointed foreclosure commissioners are entitled to quasi-judicial immunity).
Plaintiffs have also failed to state a claim under the FDCPA against Deutsche Bank. Plaintiffs' claim in this respect appears to be based on Deutsche Bank's attorneys failing to respond to a letter. Compl. ¶ 7. These cursory statements do not provide enough facts to put Deutsche Bank on notice of the basis of any FDCPA claim. And to the extent Plaintiffs merely object that Deutsche Bank sought and obtained relief in the state court action, they fail to explain how this conduct is actionable under the FDCPA. See, e.g., 15 U.S.C. § 1692f(6).
Defendants' motions are therefore GRANTED with respect to any claim brought under the FDCPA.
"A claim under the False Claims Act requires a showing of (1) a false statement or fraudulent course of conduct, (2) made with the scienter, (3) that was material, causing (4) the government to pay out money or forfeit moneys due." United States ex rel. Campie v. Gilead Scis., Inc., 862 F.3d 890, 899 (9th Cir. 2017) (internal quotation marks and citation omitted). Plaintiffs' basis for this claim (which appears to be brought against Deutsche Bank only) is unclear, although it may derive from Plaintiffs' allegation that Deutsche Bank cannot prove it holds the original promissory note. See Compl. ¶¶ 1, 7. Even construing Plaintiffs' allegations liberally, there is no allegation the federal government has been forced to pay or forfeit money due. Plaintiffs' vague reference to "fraud" is also insufficient to allege fraudulent conduct and scienter with the level of particularity necessary to state a claim under the False Claims Act. See Cafasso, United States ex rel. v. Gen. Dynamics C4 Sys., Inc., 637 F.3d 1047, 1054-55 (9th Cir. 2011) ("The heightened pleading standard of Rule 9(b) governs FCA claims." (citation omitted)). Defendants' motions are therefore GRANTED as to any claim brought under the False Claims Act.
Plaintiffs' claim under § 1983 appears to be premised on their inability to obtain a jury trial and appeal in the state court action because the state court granted Deutsche Bank's motion for summary judgment. Compl. ¶¶ 5, 9. Section 1983 "only provides a remedy against persons acting under color of state law." Ibrahim v. Dep't of Homeland Sec., 538 F.3d 1250, 1257 (9th Cir. 2008).
To the extent Plaintiffs' § 1983 claim against Commissioner Minatodani is based on her acting pursuant to her authority under the state court's order, any such claim would be barred under the doctrine of quasi-judicial immunity as explained above. While Plaintiffs make vague references to "fraud," it is unclear whether this allegation refers to Commissioner Minatodani. See Compl., Ex. D. Even assuming it does, such a conclusory reference to fraud is insufficient to defeat Commissioner Minatodani's claim of immunity. See New Alaska Dev. Corp., 869 F.2d at 1304. With regard to Deutsche Bank, Plaintiffs fail to allege or explain how Deutsche Bank was acting under color of state law. See Billings v. United States, 57 F.3d 797, 801 (9th Cir. 1995) ("Misuse of power, possessed by virtue of state law and made possible only because the wrongdoer is clothed with the authority of state law, is action taken `under color of' state law." (citation omitted)).
While the Court must apply a liberal standard to a motion to dismiss (especially when a plaintiff is self-represented), "a liberal interpretation of a civil rights complaint may not supply essential elements of the claim that were not initially pled." Ivey v. Bd. of Regents of the Univ. of Alaska, 673 F.2d 266, 268 (9th Cir. 1982). Because "[v]ague and conclusory allegations of official participation in civil rights violations are not sufficient to withstand a motion to dismiss," id. (citations omitted), the Court agrees that Plaintiffs have failed to state a claim under § 1983.
Defendants' motion as to any claim under § 1983 is therefore GRANTED.
For the foregoing reasons, the Court GRANTS Defendants' Motions to Dismiss for failure to state a claim under Rule 12(b)(6). Because amending the Complaint is not necessarily futile, the Court grants Plaintiffs LEAVE TO AMEND their claims. See Cervantes v. Countrywide Home Loans, Inc., 656 F.3d 1034, 1041 (9th Cir. 2011). Plaintiffs may file an amended complaint no later than December 6, 2019.
IT IS SO ORDERED.
15 U.S.C. § 1692f(6).