Northern California Record

Sunday, December 15, 2019

Homeowner's wrongful foreclosure case against U.S. Trust Bank, others tossed by federal judge


By Payton Kuhn | Apr 10, 2019


SACRAMENTO – A bank and other other companies named in a wrongful foreclosure suit have been granted their motion to dismiss the suit by a federal judge.

On March 5, Judge Kimberly J. Mueller of the U.S. District Court for the Eastern District of California Court granted U.S. Trust Bank's motion to dismiss the lawsuit filed by William Harticon.

Mueller dismissed Harticon’s claims due to deficiencies in his complaint and unclear arguments. Mueller also granted the defendants’ request for the court to take judicial notice of documents impacting the case itself, including Harticon’s multiple bankruptcy cases.

Harticon alleged in his lawsuit that U.S. Trust, along with Summit Management Co. and Caliber Home Loans, contributed to wrongfully foreclosing on and selling his Sacramento home, citing breaches of contract, breaches of good faith and fair dealing, general negligence and other counts.

The ruling states Harticon borrowed $320,000 to finance the purchase of his property in 2007 and sometime in 2016, he fell behind on his payments. Caliber offered him a trial payment plan in April 2016, which Harticon signed the following month. Summit recorded the notice of default in September 2016.

Soon after a failed bankruptcy protection petition in 2017, his third within five years, his home was sold at a public auction on Aug. 29, 2017. 

Regarding Harticon’s breach of contract assertion, Mueller found that he provided “no support for his contention defendants were required to provide him with a separate notice,” prior to receiving the default notice. Mueller also stated Harticon's claims that the defendants were required to notify him of his default after the first missed payment is unsupported.

Harticon has also admitted that “he stopped making mortgage payments and thus breached the deed of trust,” and making no attempt to allege his inability to do so was excused, the ruling states.

Mueller gave Harticon three weeks from the March 4 statement to amend his complaint with more substantial evidence. Only his California Civil Code Section 2924.12 complaint was dismissed without leave to amend.

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