Watoshina Compton v. Countrywide Financial Corp

Watoshina Lynn Compton appeals the district court’s dismissal of her claim under section 480-2 of the Hawaii Revised Statutes, which authorizes consumers to “bring an action based upon unfair or deceptive acts or practices.” Haw.Rev.Stat. § 480-2(d) (referred to herein as a UDAP claim). Because Compton’s complaint adequately alleges that unfair and deceptive acts by Bank of America Corporation (BAC) caused an injury resulting in damages, we reverse the district court.

I

We assume the following facts taken from the complaint are true for the purpose of our review. See Metzler Inv. GMBH v. Corinthian Colls., Inc., 540 F.3d 1049 , 1055 n. 1 (9th Cir.2008).

In 2003, Compton purchased a piece of real property through a privately funded construction loan. Compton later sought to refinance this loan and, in May 2006, executed a promissory note and mortgage giving Countrywide Home Loans, Inc., a security interest in the property. After Compton refinanced her mortgage and before the events at issue in this case, BAC acquired Countrywide.

After making timely loan payments for more than two years, Compton began suffering financial difficulties due to a decline in her fiberglass…