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KEO v. Federal Housing Finance Agency, as Conservator of Federal Home Loan Mortgage Corporation, Intervenor-Defendant-Appellee. (2021)

United States Court of Appeals, Ninth Circuit.2021-04-23No. No. 19-16984

Summary

Holding. The district court's judgment dismissing Keo's action was affirmed because her constitutional claim was foreclosed by Freddie Mac's status as a non-governmental entity not subject to the Fifth Amendment, and her cancellation of instruments claim lacked sufficient factual allegations to state a plausible claim.

Chanht Reatrey Keo appealed the dismissal of her foreclosure-related lawsuit against the Federal Housing Finance Agency and Freddie Mac, raising both federal constitutional claims and state law claims. The court upheld the district court's dismissal on two independent grounds. First, Freddie Mac is not a government entity and therefore does not fall under the protections of the Fifth Amendment's Due Process Clause, making Keo's constitutional claim legally deficient. Second, Keo's state law claim for cancellation of instruments failed because she did not plead sufficient factual allegations to state a plausible legal claim under California law.

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

Key issues

  • Whether Freddie Mac is subject to Fifth Amendment due process protections
  • Whether plaintiff adequately pleaded a cancellation of instruments claim under California law
  • Standards for dismissal under Rule 12(b)(6) for failure to state a claim

Procedural posture

Keo appealed pro se from a district court judgment dismissing her foreclosure-related action on the pleadings.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

MEMORANDUM **

Chanht Reatrey Keo appeals pro se from the district courts judgment dismissing her foreclosure-related action alleging federal and state law claims. We have jurisdiction under 28 U.S.C. § 1291. We review de novo a district courts dismissal based on res judicata. Stewart v. U.S. Bancorp, 297 F.3d 953, 956 (9th Cir. 2002). We may affirm on any basis supported by the record, Thompson v. Paul, 547 F.3d 1055, 1058-59 (9th Cir. 2008), and we affirm.

Dismissal of Keos constitutional claim was proper because the Federal Home Loan Mortgage Corporation (“Freddie Mac”) is not subject to the due process clause of the Fifth Amendment. See Am. Bankers Mortg. Corp. v. Fed. Home Loan Mortg. Corp., 75 F.3d 1401, 1409 (9th Cir. 1996) (“Freddie Mac is not a government agency subject to the Fifth Amendments Due Process Clause.”).

Dismissal of Keos cancellation of instruments claim was proper because Keo failed to allege facts sufficient to state a plausible claim. See Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (to avoid dismissal, “a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” (citation and internal quotation marks omitted)); see also Thompson v. Ioane, 11 Cal.App.5th 1180, 218 Cal. Rptr. 3d 501, 511-12 (2017) (elements of a cancellation of instruments claim under California law).

We do not consider matters not specifically and distinctly raised and argued in the opening brief, or arguments and allegations raised for the first time on appeal. See Padgett v. Wright, 587 F.3d 983, 985 n.2 (9th Cir. 2009).

AFFIRMED.