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Brewster v. Seaside Trustee of Washington, Inc.

United States District Court, W.D. Washington, Tacoma

February 8, 2017

JAMES M. BREWSTER and KAORI T. BREWSTER, Plaintiffs,
v.
SEASIDE TRUSTEE of WASHINGTON, INC., et al., Defendants.

          ORDER DENYING PLAINTIFFS' MOTION FOR JUDGMENT ON THE PLEADINGS, PERMANENT INJUNCTION, AND PRELIMINARY INJUNCTION, DISSOLVING TEMPORARY RESTRAINING ORDER, AND SETTING FORECLOSURE SALE

          BENJAMIN H. SETTLE United States District Judge

         This matter comes before the Court on Plaintiffs James Brewster and Kaori Brewster's (“Brewsters”) emergency motion for preliminary injunction or judgment on the pleadings (Dkt. 21). The Court has considered the pleadings filed in support of and in opposition to the motion and the remainder of the file and hereby denies the motion for the reasons stated herein.

         I. PROCEDURAL HISTORY

         On July 18, 2016, the Brewsters filed a complaint in Clark County Superior Court for the State of Washington asserting numerous causes of action against numerous defendants. Dkt. 1-1 at 5-95 (“Comp.”).

         On August 19, 2016, Defendants Bayview Loan Servicing, LLC (“Bayview”), Mortgage Electronic Registration Systems, Inc. (“MERS”), and The Bank of New York Mellon (“BNYM”) removed the matter to this Court. Dkt. 1.

         On August 26, 2016, Defendants Bayview, MERS, BNYM, and Seaside Trustee of Washington, Inc. (“Defendants”) answered the complaint. Dkt. 9. Relevant to the instant motion, Defendants admitted paragraphs 4.9 and 4.11-4.16 in the Brewsters' complaint. Id. at 6.

         On October 7, 2016, the Brewsters filed the instant motion and, although not entirely clear, appear to be seeking a temporary restraining order, a preliminary injunction, a permanent injunction, and/or judgment on the pleadings. Dkt. 21. On October 11, 2016, Defendants responded and, in a footnote, requested amendment of the answer because the relevant admissions were clerical error. Dkt. 25. On October 13, 2016, the Brewsters replied. Dkt. 27.

         On October 13, 2016, Defendants moved to amend their answer. Dkt. 28. On October 14, 2016, the Brewsters responded. Dkt. 30.

         On October 17, 2016, the Court granted the Brewsters' motion as to temporary relief because, based on the operative pleadings, Defendants admitted that the statute of limitations had run. Dkt. 33. The Court renoted the motion on all other issues. Id.

         On November 28, 2016, the Court granted Defendants' motion to amend their answer and requested whether the parties needed additional briefing on the merits of the Brewsters' pending motion for preliminary and permanent injunction and for judgment on the pleadings. Dkt. 43. On December 5, 2016, the parties submitted a joint status report requesting deadlines for additional briefing. Dkt. 44.

         On December 13, 2016, the Brewsters filed a supplemental brief. Dkt. 45. On December 23, 2016, Defendants replied. Dkt. 48.

         II. FACTUAL BACKGROUND

         In December 2005, the Brewsters obtained a loan from Winstar Mortgage Partners. Comp., ¶ 3.2. They executed a Note secured by a Deed of Trust (“DOT”) naming the original trustee as Fidelity National Title, and naming MERS as the beneficiary and nominee for Winstar Mortgage Partners, Inc. Id., ¶ 3.5.

         On or about October 20, 2011, MERS recorded an Assignment of Deed of Trust to BNYM, as Trustee for the Certificate-Holders of CWMBS, Inc., Alternative Loan Trust 2006-OA1. Dkt. 26, Declaration of Gerardo Trueba (“Trueba Decl.”), ¶ 5. Bayview serviced the loan on behalf of BNYM. Id., ΒΆ 6. On November 16, 2015, ...


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