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ALLEY v. MTGLQ INVESTORS LP LP (2021)

United States Court of Appeals, Ninth Circuit.2021-05-25No. No. 20-35076

Summary

Holding. The court affirmed the district court's dismissal of Alley's claims, finding both that she failed to allege sufficient facts to state a plausible breach of contract claim and that her Deed of Trust Act claim was barred by res judicata.

Esther Alley appealed the dismissal of her diversity lawsuit against MTGLQ Investors LP, which involved breach of contract claims related to foreclosure proceedings. The appellate court reviewed whether the district court properly dismissed her claims under the standard for failure to state a plausible claim. The court found the dismissals were appropriate on two separate grounds: first, Alley's breach of contract and implied covenant of good faith and fair dealing claims lacked sufficient factual allegations to meet the pleading standard, even accounting for the lenient treatment afforded to self-represented litigants; second, her claim under Washington's Deed of Trust Act was barred by res judicata because she had previously litigated the same causes of action against the same defendants, resulting in a final judgment.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether plaintiff pleaded sufficient facts to state a plausible breach of contract claim
  • Whether res judicata bars a subsequent action based on prior final judgment on the merits
  • Application of pleading standards to pro se litigants

Procedural posture

Alley appealed pro se from a district court judgment dismissing her diversity action for breach of contract claims arising from foreclosure proceedings.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

MEMORANDUM **

Esther L. Alley appeals pro se from the district courts judgment dismissing her diversity action alleging breach of contract claims arising from foreclosure proceedings. We have jurisdiction under 28 U.S.C. § 1291. We review de novo a dismissal for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). Cervantes v. Countrywide Home Loans, Inc., 656 F.3d 1034, 1040 (9th Cir. 2011). We affirm.

The district court properly dismissed Alleys claims for breach of contract and breach of the implied covenant of good faith and fair dealing because Alley failed to allege facts sufficient to state a plausible claim. See Hebbe v. Pliler, 627 F.3d 338, 341-42 (9th Cir. 2010) (although pro se pleadings are liberally construed, a plaintiff must allege facts sufficient to state a plausible claim); see also Rekhter v. State, Dept of Soc. & Health Servs., 180 Wash.2d 102, 323 P.3d 1036, 1041 (2014) (discussing the implied covenant of good faith and fair dealing under Washington state law); Nw. Indep. Forest Mfrs. v. Dept of Lab. & Indus., 78 Wash.App. 707, 899 P.2d 6, 9 (1995) (“A breach of contract is actionable only if the contract imposes a duty, the duty is breached, and the breach proximately causes damage to the claimant.”).

The district court properly dismissed as barred by res judicata Alleys claim under Washingtons Deed of Trust Act because Alley had previously sued defendants in privity regarding the same causes of action and subject matter which resulted in a final judgment on the merits. See Ensley v. Pitcher, 152 Wash.App. 891, 222 P.3d 99, 104 (2009) (setting forth the factors to determine whether a subsequent action is barred by res judicata under Washington state law).

Appellees’ motion for judicial notice (Docket Entry No. 15) is granted.

AFFIRMED.