Cooper v. Wells Fargo Bank, N.A.

Background

The court had previously deferred ruling on Count 1 of the operative complaint and ordered supplemental briefing. After receiving that briefing, the court ruled on the count.

Claim and arguments

Elizabeth Cooper alleged that Wells Fargo violated California Civil Code section 2923.6 by recording a notice of trustee’s sale while her appeal was pending. Wells Fargo argued that it denied the appeal before recording the notice. It also argued that, even if Cooper did not receive the denial letter when it was first issued, she had since seen it and had done so before any trustee’s sale occurred.

Wells Fargo relied on California Civil Code section 2924.12(c), which provides that certain mortgage-related entities are not liable for a violation corrected and remedied before the trustee’s deed is recorded. Cooper argued that the only adequate remedy was rescinding the notice of sale.

Court’s reasoning

The court saw little point in rescinding the notice because it stated that the sale would occur on March 19, 2020, a date that had already passed. The court stated that if Wells Fargo later wished to sell the property, it would presumably need to issue a new notice of trustee’s sale.

The court also noted that Cooper sought only injunctive relief. It described the purpose of that relief as preserving her opportunity to be considered for a loan modification or another foreclosure alternative. According to the court, Wells Fargo had considered Cooper for such an alternative before any later sale could occur.

Disposition

The court dismissed Count 1 with prejudice. The opinion does not state that the court decided whether Wells Fargo actually violated section 2923.6; instead, it concluded that the requested injunction no longer provided a meaningful remedy under the circumstances. Judge Edward M. Chen signed the order on June 30, 2020.