Reyes
Reyes v. Downey Savings and Loan Ass'n, FA
Opinion
Opinion
Guilford, J.
ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS
Before the Court is Defendants’ Motion to Dismiss the Second Through Sixth Causes of Action in Plaintiffs’ First Amended Complaint for Failure to State a Claim (“Motion”). Some of the important issues addressed in this Motion are simply not best resolved through a motion to dismiss and the standards applicable to such motions. After considering the moving, opposing, and reply papers, and oral argument by the parties, the Court hereby GRANTS IN PART and DENIES IN PART Defendants’ Motion.
BACKGROUND
The following facts are taken from Plaintiffs’ First Amended Complaint (“Complaint”), and for the purposes of this Motion, the Court assumes them to be true. Plaintiffs were consumers who applied for a primary residence mortgage loan through Defendants. (Complaint 5:7-8.) Defendants sold Option ARM home loans to Plaintiffs. (Complaint 4:10-11.) In selling these home loans, Defendants promised a low, fixed, interest rate, and Plaintiffs relied upon that promise. (Complaint 4:12-15.) In reality, the interest rate increased almost immediately after the signing. (Complaint 5:5-6.)