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BROWN v. WELLS FARGO BANK FSB FSB (2021)

United States Court of Appeals, Ninth Circuit.2021-04-28No. No. 20-15331

Summary

Holding. The appellate court affirmed the district court's dismissal, finding no abuse of discretion in denying leave to amend the complaint to include a Homeowner Bill of Rights claim premised on an alleged lender obligation to provide loan modification.

Suzanne Brown appealed the dismissal of her foreclosure-related diversity lawsuit. She sought permission to add a claim under California's Homeowner Bill of Rights, arguing the defendant lender was required to offer her a loan modification. The court found no abuse of discretion in denying her request to amend because, under California law, the Homeowner Bill of Rights does not actually require lenders to provide loan modifications—it only requires that borrowers be given a meaningful opportunity to apply for available options. Because any amended complaint based on a mandatory modification requirement would be legally futile, the district court properly refused to allow the amendment.

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

Key issues

  • Whether California's Homeowner Bill of Rights requires lenders to offer loan modifications
  • Whether denying leave to amend was an abuse of discretion when amendment would be legally futile
  • Proper scope of issues raised on appeal

Procedural posture

The appellant Brown appealed pro se from the district court's judgment dismissing her diversity action and denying her motion for leave to amend her first amended complaint.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

MEMORANDUM **

Suzanne Brown appeals pro se from the district courts judgment dismissing her diversity action arising out of foreclosure proceedings. We have jurisdiction under 28 U.S.C. § 1291. We review for an abuse of discretion the denial of leave to amend. Cervantes v. Countrywide Home Loans, Inc., 656 F.3d 1034, 1041 (9th Cir. 2011). We affirm.

The district court did not abuse its discretion by denying leave to amend Browns first amended complaint to allege a California Homeowner Bill of Rights (“HOBR”) claim based on her proposed allegations that defendant was required to provide her with a loan modification. See Cal. Civ. Code § 2923.4 (explaining that “the purpose of [HOBR] ․ is to ensure that, as part of the nonjudicial foreclosure process, borrowers are considered for, and have a meaningful opportunity to obtain, available loss mitigation options,” but that nothing in HOBR “require[s] a particular result of that process”); Mabry v. Superior Ct., 185 Cal.App.4th 208, 110 Cal. Rptr. 3d 201, 211 (2010) (“Section 2923.6 merely expresses the hope that lenders will offer loan modifications on certain terms.” (emphasis is original)); see also Cervantes, 656 F.3d at 1041 (leave to amend may be denied where amendment would be futile).

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).

Defendants request for judicial notice is denied as unnecessary.

AFFIRMED.