Facts

Ridgewood is a California Limited Liability Company that owns the real property located at 1305 Ridgewood in Millbrae, California. Kelvin Vuong was the managing member of Ridgewood. In Fall 2020, Vuong and 1305 Ridgewood, LLC engaged Athas Capital Group to obtain a loan secured by the property. In response, Athas engaged Endeavor Appraisals to conduct the required property appraisal. Endeavor created an appraisal report of the property based on color photographs of its interior and exterior, as well as comparable homes in the vicinity. On November 25, 2020, Athas provided Vuong and 1305 Ridgewood with a black-and-white copy of the appraisal report via email. Vuong and 1305 Ridgewood were unable to agree to terms for financing with Athas. Vuong and 1305 Ridgewood, LLC brought a lawsuit against Athas Capital Group and Endeavor Appraisals, Inc., alleging violations of the Equal Credit Opportunity Act and California Business & Professions Code.

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged that defendants failed to furnish them, as creditors, with a color copy of the written appraisal within 3 days prior to the closing of the loan. Plaintiffs contended that defendants engaged in unfair and unlawful business practices by failing to provide a copy of the appraisal report. Finally, plaintiffs argued that defendants conspired to violate the relevant laws.

DEFENDANTS' CONTENTIONS: Defendants contended that plaintiffs claim failed because they lacked standing, as Ridgewood was not an applicant for purposes of the claims. Further, defendants argued there was no violations because Vuong was provided with both notice of his right to receive a copy of an appraisal and a copy of the appraisal report prepared by Endeavor. Moreover, defendants maintained that there was no statutory requirement that the appraisal be in color. Finally, defendants argued that plaintiffs failed to support their inference that defendants' conduct was against public policy, immoral, unethical, oppressive, or substantially injurious to consumers.

Result

Defendant's motion to dismiss was granted without leave to amend.