Rivera v. Deutsche Bank (In re Rivera)

Summarized by Bruce Weiner , Rosenberg, Musso & Weiner
11 years 3 months ago

Citation:

NC-13-4615

Tag(s):

Ruling:

Ninth Circuit BAP affirmed in part and reversed in part bankruptcy court's order dismissing debtors' second amended complaint against the bank challenging the mortgage on the debtors' property. The bankruptcy court dismissed the entire complaint without leave to amend, holding that the debtors lacked right to dispute the assignment of the mortgage and did not make out a claim for relief. The BAP found that the debtors did have the right to challenge the bank's secured claim because they were challenging all the links in the chain of title of the note and therefore could contest the bank's right to enforce the note and collect the amount due. The BAP also found that the debtors stated a plausible claim for relief under the Truth in Lending Act. The BAP affirmed the bankruptcy court's dismissal of the other three causes of action, cancellation of assignment, slander of title, and unfair competition.

Procedural context:

Appeal from the United States Bankruptcy Court for the Northern District of California

Facts:

Debtors filed complaint challenging the right of bank to enforce a mortgage note and right to collect the note. After twice dismissing the complaint with leave to amend the bankruptcy court dismissed the second amended complaint, without leave to amend. The BAP affirmed the dismissal of three causes of action, but reversed the dismissal of the other two causes of action and remanded the case to the bankruptcy court for further proceedings.

Judge(s):

Kurtz, Pappas & Jury

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