United States District Court, W.D. Washington
ORDER GRANTING DEFENDANTS' MOTIONS TO
RICARDO S. MARTINEZ CHIEF UNITED STATES DISTRICT JUDGE
matter comes before the Court on the following motions:
Defendant Ditech Financial LLC's (“Ditech”)
Motion to Dismiss pursuant to Federal Rule of Civil Procedure
12(b)(6) (Dkt. #17);
Defendants Nationstar Mortgage LLC's
(“Nationstar”), Mortgage Electronic Registration
Systems, Inc.'s (“MERS”), and Federal
National Mortgage Association's (“Federal
National”) Motion to Dismiss (Dkt. #19); and
Defendant Northwest Trustee Services, Inc.'s Motion to
Dismiss Pursuant to Federal Rule of Civil Procedure 12(b)(6)
reasons discussed below, the Court GRANTS these motions.
about July 17, 2002, Plaintiffs obtained a $196, 000.00 Note
secured by a Deed of Trust (collectively “the
Loan”) to finance real property at 18005 SE 63rd
Street, Issaquah, WA 98027. Dkt. #1 at ¶ 10, Exs. A, B
and E at ¶ ¶ 25 and 27, Dkt. #20 at ¶ 2, Ex.
A, and Dkt. #7, Ex. 1. The Deed of Trust securing the Loan to
the property identifies Plaintiffs as the borrowers, GMAC
Mortgage Corporation DBA ditech.com (“GMAC”) as
the lender, Trans Nation Title Company as the trustee, and
MERS, acting solely as nominee of the lender and lender's
successors and assigns, as the beneficiary. Id. MERS
subsequently assigned its interest in the Deed of Trust to
Nationstar, as reflected in the Corporate Assignment of Deed
of Trust recorded on August 1, 2013. Dkt. #20 at ¶ 3,
Ex. B and Dkt. #7, Ex. 3.
about October 1, 2014, Plaintiffs defaulted on the Loan. Dkt.
#1, Ex. C.
about May 28, 2015, Nationstar recorded an Appointment of
Successor Trustee appointing Northwest Trustee Services, Inc.
as the successor trustee. Dkt. #20 at ¶ 4, Ex. C and
Dkt. #7, Ex. 4.
about June 20, 2016, a Notice of Trustee's Sale was
recorded with the King County, Washington Auditor. Dkt. #20
at ¶ 5, Ex. D and Dkt. #1 at ¶ 11, Ex. C. Before
the scheduled sale took place, Plaintiffs filed an action in
King County Superior Court against several of the same
Defendants as in the instant action. Dkt. #20 at ¶
¶ 6 and 7, Exs. E and F. The case was removed to this
Court on August 8, 2016, and assigned to the Honorable James
L. Robart. Case No. C16-1243JLR, Dkt. # 1. Plaintiffs
essentially alleged that Defendants lacked authority to
collect any payments on the loan and to foreclose because the
securitization process was not disclosed and the Deed of
Trust and Note were “null and void for lack of
consent.” See Dkt. #1, Ex. A. at ¶ 3.
Plaintiffs further alleged a claim for fraud, and asserted
that the foreclosure and sale of their Property was unlawful.
Case No. C16-1243JLR., Dkt. # 1, Ex. A at ¶ ¶ 6 and
7. The Complaint referenced the same Deed of Trust and Note
that Plaintiffs attach to the current Complaint.
Compare Case No. C16-1243JLR, Dkt. #1 at ¶ 4,
Exs. A and B with Dkt. #1 (in the instant matter) at
¶ 10, Exs. A and B. Plaintiffs also reference the Notice
of Trustee's Sale dated June 17, 2016, and their Debt
Validation requests in both Complaints.
September 8, 2016, Judge Robart granted the defendants'
motion to dismiss, with leave to amend the Complaint. Case
No. C16-1243JLR, Dkt. #14. On October 18, 2016, Plaintiffs
filed their Amended Complaint. Id., Dkt. #17. The
Amended Complaint asserted a new cause of action for libel,
but contained essentially the same claims as the original
Complaint. Id. Judge Robart ultimately dismissed all
of Plaintiffs' claims with prejudice, and entered
judgment April 5, 2017. Dkts. #28, #30 and #31.
then filed a Motion to Alter/Amend the Order and Judgment.
Dkts. #32 and #33. Plaintiffs also asked Judge Robart to
recuse himself from their matter. Id. Judge Robart
construed Plaintiffs' motion as one for reconsideration,
and denied it. Dkt. #34. Plaintiffs then filed a Notice
of Appeal with the Ninth Circuit Court of Appeals. Dkt. #37.