Jenkins v. JPMorgan Chase Bank, N.A.
216 Cal. App. 4th 497
| Cal. Ct. App. | 2013Background
- Jenkins sued Chase, Bank of America, and Quality to challenge nonjudicial foreclosure and for damages related to loan servicing.
- Jenkins executed a 2007 promissory note and deed of trust securing a $375,500 WaMu loan for her Laguna Niguel condo.
- WaMu failed in 2008; FDIC placed it in receivership and transferred assets to Chase with no liability assumption for pre-2008 lending.
- Chase recorded substitutions/assignments and Quality as trustee; a notice of default was recorded in 2010 and foreclosure proceedings began.
- The trial court sustained demurrers without leave to amend; Jenkins amended to SAC but the demurrers were again sustained; this appeal followed.
- Court affirmed dismissal of all five causes of action and held declaratory relief, 2932.5, UCL, and RESPA claims inadequate under governing law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to foreclose preemptively lacking | Jenkins | Chase and others | Demurrers proper; no preemptive right to challenge foreclosure |
| Applicability of 2932.5 to deeds of trust | Jenkins | 2932.5 does not apply to deeds of trust | Rejects 2932.5 claim against deeds of trust |
| Standing to pursue UCL/17200 claim | Jenkins | Plaintiff lacks standing under Prop. 64 | UCL standing deficient; demurrer upheld without leave to amend |
| RESPA damages requirement | Jenkins | RESPA damages alleged but not causally linked | RESPA claim fails for lack of particularized damages and causation |
Key Cases Cited
- Gomes v. Countrywide Home Loans, Inc., 192 Cal.App.4th 1149 (Cal. Ct. App. 2011) (preemptive challenges to foreclosure not allowed under nonjudicial scheme)
- Debrunner v. Deutsche Bank National Trust Co., 204 Cal.App.4th 433 (Cal. Ct. App. 2012) (no requirement to possess note to foreclose; broad authorization to initiate foreclosure)
- City of Cotati v. Cashman, 29 Cal.4th 77 (Cal. 2002) (standing and declaratory relief require concrete controversy)
- Gomes, supra, 192 Cal.App.4th 1149 (Cal. Ct. App. 2011) (reiterates preemptive action issues under nonjudicial scheme)
- Jessin v. County of Shasta, 274 Cal.App.2d 737 (Cal. Ct. App. 1969) (actual controversy requirements; pleading specificity)
- Haynes v. EMC Mortgage Corp., 205 Cal.App.4th 329 (Cal. Ct. App. 2012) (distinguishes deeds of trust from mortgages for 2932.5 applicability)
- Herrera v. Federal National Mortgage Assn., 205 Cal.App.4th 1495 (Cal. Ct. App. 2012) (treatment of standing and implied covenant in context of securitization)
- Moeller v. Lien, 25 Cal.App.4th 822 (Cal. Ct. App. 1994) (nonjudicial foreclosure framework)
- Secrest v. Security National Mortgage Loan Trust 2002-2, 167 Cal.App.4th 544 (Cal. Ct. App. 2008) (trust deeds and foreclosure mechanics)