Facts

On February 9, 2007, Plaintiff entered into a Home Equity Line of Credit Agreement and Promissory Note (HELOC) with Greenpoint Mortgage Funding, Inc. (Greenpoint). Under the HELOC agreement, Suarez received a line of credit secured by a deed of trust (DOT) on her home. The assigned trustee of the DOT was Marin Conveyancing Corp. (Marin Conveyancing). Under the HELOC agreement, Greenpoint also promised to send her monthly statements regarding her outstanding credit balance. In January 2008, Suarez was unsuccessful in contacting Greenpoint to dispute an advance she claims she did not make. Eight months later, Suarez received a letter from Greenpoint stating that the HELOC agreement had been suspended because the value of her home dropped to $146,100. Suarez continued to make payments until October 2008, when she received a second letter from Greenpoint explaining to her that Countrywide will be servicing her loan beginning November 28, 2008. After she reached out to Countrywide, she was told Capital One was servicing her loan. In December 2009, Bank of America (BA) contacted Suarez stating that she owed money on an outstanding debt under the HELOC agreement. An unnamed BA manager in Indio, California allegedly told her not to worry about her credit as in five years the amount being reported would be removed. He allegedly told her to return to her home and continue to pay her first and second loan to USDA and enjoy her home. At some point between 2007 and 2012, Marin Conveyancing assigned the DOT to Mortgage Electronic Registration Systems Inc. (MERS). In February 2012, MERS assigned the DOT back to Greenpoint. Seven months later, Real Time Resolutions Inc. contacted Suarez about her outstanding debt. Suarez did not respond, believing RTR was a scam entity. In January 2022, RTR began calling and sending letters to Suarez regarding the February 2022 maturity date on the HELOC. Several months later, Suarez received an intent-to-foreclose letter. On July 21, 2022, MERS assigned the DOT to Marin Conveyancing. Marin Conveyancing then assigned the DOT to ZBS Law, LLP (ZBS Law). Less than a month later, ZBS Law recorded a Notice of Default and Election to Sell Under Deed of Trust. In September 2022, Suarez asked RTR to provide proof of the outstanding debt to no avail. In March 2023, ZBS Law foreclosed on Suarez's home and later sold it to Defendant Yakte Properties, LLC (Yakte). ZBS Law conveyed title via the Trustee's Deed Upon Sale to Yakte. Suarez brought a Second Amended Complaint against RTR and Yakte for breach of contract; breach of the implied covenant of good faith and fair dealing; promissory estoppel; fraud; extortion; quiet title; and cancellation of cloud on title. RTR and Yakte moved to dismiss.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendants were contractually obligated to provide her with monthly billing statements on her outstanding debt since they were acting as agents of Greenpoint and BA. Moreover, plaintiff contended that defendants were bound by BA's purported promise that she need not make payments because the debt was uncollectable and that she reasonably relied on this promise to her detriment. Plaintiff also argued that defendants fraudulently misrepresented that she owed Greenpoint over $146,335.76 on February 15, 2022, and $275,692.11 total in February 2023.

DEFENDANTS' CONTENTIONS: Defendants argue that there is no agent-principal relationship between them and Greenpoint or BA. Consequently, defendants are not bound by the contract between plaintiff and Greenpoint, or the promise allegedly made by BA. Further, plaintiff failed to allege justifiable reliance on the misrepresentation purportedly made.

Result

The court granted defendants' motion to dismiss with prejudice.