Khaziri v. Bank of America, N.A.
5:17-cv-01639
| N.D. Cal. | Jan 30, 2018Background
- Plaintiff Mohsen Khaziri sued Caliber Home Loans after Caliber recorded a Notice of Trustee’s Sale during efforts to sell his home, alleging intentional interference with a prospective sale and violations of California’s Unfair Competition Law (UCL).
- This was Khaziri’s third amended complaint; the court had previously dismissed earlier versions and gave leave to amend twice.
- Khaziri alleged Caliber intentionally disrupted his private sale by recording the notice, causing loss of the property and equity and depriving him of loss-mitigation opportunities.
- Caliber moved to dismiss under Rule 12(b)(6), arguing Khaziri failed to plead intentional, independently wrongful conduct and that his UCL claim was untethered to any statutory or regulatory violation.
- The court analyzed both the tort of intentional interference with prospective economic relations and the unlawful/unfair prongs of the UCL, focusing on whether Khaziri pled independently actionable wrongdoing or a statutory tether for unfairness.
- The court found further amendment futile and dismissed both claims with prejudice, entering judgment for Caliber.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Khaziri stated a claim for intentional interference with prospective economic relations | Khaziri alleged Caliber knowingly recorded a Notice of Trustee’s Sale to disrupt his sale, causing economic harm | Caliber argued Khaziri did not plead intentional acts wrongful beyond the interference itself or violation of any legal standard | Dismissed with prejudice: no independent wrongful act pleaded and amendment would be futile |
| Whether Khaziri stated a UCL claim under the "unlawful" prong | Khaziri relied on his interference claim and invoked the Homeowner Bill of Rights preamble as the statutory policy | Caliber argued there was no underlying unlawful act and the alleged conduct was not tethered to a specific statute or regulation | Dismissed with prejudice: unlawful prong fails because interference claim fails |
| Whether Khaziri stated a UCL claim under the "unfair" prong | Khaziri argued the recording was unscrupulous and injurious, depriving him of loss-mitigation opportunities | Caliber argued the conduct was within foreclosure rights and Khaziri’s allegations were not tethered to a statutory violation | Dismissed with prejudice: court declined the amorphous "unfairness" test and found allegations insufficiently tethered to statutory policy |
| Whether leave to amend should be granted again | Khaziri sought to amend to cure defects following prior dismissals | Caliber opposed further amendment as futile | Denied: court concluded prior opportunities and futility; dismissal with prejudice granted |
Key Cases Cited
- Navarro v. Block, 250 F.3d 729 (9th Cir.) (motion to dismiss standard)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (plausibility standard for complaints)
- Ashcroft v. Iqbal, 556 U.S. 662 (application of plausibility and conclusory allegation standards)
- Lopez v. Smith, 203 F.3d 1122 (leave to amend ordinarily granted unless futile)
- Youst v. Longo, 43 Cal.3d 64 (elements of intentional interference with prospective economic relations)
- Della Penna v. Toyota Motor Sales, U.S.A., Inc., 11 Cal.4th 376 (interference tort explained; requirement of independent wrongfulness)
- Korea Supply Co. v. Lockheed Martin Corp., 29 Cal.4th 1134 (independent unlawfulness standard for interference/UCL tethering)
- Stevenson Real Estate Servs., Inc. v. CB Richard Ellis Real Estate Servs., Inc., 138 Cal.App.4th 1215 (independently actionable conduct requirement)
- Cel-Tech Commc’ns, Inc. v. Los Angeles Cellular Tel. Co., 20 Cal.4th 163 (UCL unlawful/unfair framework and tethering requirement)
- Klamath-Lake Pharmaceutical Ass’n v. Klamath Med. Serv. Bureau, 701 F.2d 1276 (amendment futile doctrine)