David Merritt v. Countrywide Financial Corporation

MEMORANDUM

Plaintiffs appeal from the district court’s dismissal with prejudice of their pro se complaint. We affirm in part, vacate in part, and remand for further proceedings.

1. As to defendants’ alleged non-disclosures in March 2006, we affirm the dismissal of plaintiffs’ Truth in Lending Act (“TILA”) damages claim as time-barred. The TILA statute of limitations runs from when “the borrower discovers or had reasonable opportunity to discover the fraud or nondisclosures that form the basis of the TILA action.” King v. California, 784 F.2d 910, 915 (9th Cir.1986). Taking as true plaintiffs’ allegation that they received blank disclosure forms in March 2006, “nothing prevented [them] from comparing” those blank forms with “TILA’s statutory and regulatory requirements,” and thereby discovering the failure to disclose. Hubbard v. Fidelity Fed. Bank, 91 F.3d 75 , 79 (9th Cir.1996); see also Cervantes v. Countrywide Home Loans, Inc., 656 F.3d 1034, 1045 (9th Cir.2011).

2. The district court did not separately consider plaintiffs’ other TILA damages claims, which are predicated on separate TILA violations alleged to have occurred in February 2009 — namely, that Countrywide failed…