Foley v. US Bank National Association

Background

David R. Foley brought the action against US Bank National Association and other defendants. The opinion states that the complaint was “mostly incoherent,” which made it difficult for the court to determine Foley’s claims. The court accepted the defendants’ interpretation of what Foley appeared to be alleging.

Court’s analysis

The court held that the complaint primarily contained bare statements of the legal elements of a claim supported by conclusory assertions. Under the pleading standard discussed in Ashcroft v. Iqbal, the court dismissed the complaint for that reason.

The court also explained that Foley appeared unlikely to be able to state a claim. It said Foley lacked standing—the legal ability to challenge an issue in court—to challenge defects in the securitization process because he was not a party to those transactions and was not their victim. The court further stated that a blank indorsement, meaning a signature or transfer notation that does not identify a specific payee, did not make the note void. It also concluded that the debt was not time-barred under the California law cited in the opinion, which sets expiration periods for liens securing debts.

Disposition

The court granted the motion to dismiss. It dismissed the complaint with leave to amend and ordered that any amended complaint be filed within 14 days. The court also stated that, if Foley filed an amended complaint and the defendant filed another motion to dismiss, Foley’s filings would have to comply with the page limits in the court’s standing order. Judge Vince Chhabria signed the order.