Tom Casault v. One West Bank Fsb

MEMORANDUM

Tom Casault and others (“Plaintiffs”) appeal the district court’s Rule 12(b)(6) orders dismissing their second and third amended complaints in their class action against various banking and mortgage lending/servicing entities (the “Servicer Defendants”) and institutional trustees (the “Trustee Defendants”). Specifically, they appeal the dismissal of two causes of action: fraud, as the term is defined in California Civil Code § 3294, and improper foreclosure, arising under California Commercial Code § 3602. We have jurisdiction under 28 U.S.C. § 1291 and review de novo, accepting all well-pleaded allegations as true. Lloyd v. CVB Fin. Corp., 811 F.3d 1200, 1205 (9th Cir. 2016). We affirm.

1. Plaintiffs fail to allege a fraud claim against the Servicer Defendants. A plaintiff must sufficiently plead justifiable reliance as part of stating a claim for fraud. City Sols., Inc. v. Clear Channel Commc’ns, 365 F.3d 835 , 840 (9th Cir. 2004); Lazar v. Superior Court, 12 Cal.4th 631, 638 , 49 Cal.Rptr.2d 377 , 909 P.2d 981 (1996). Here, Plaintiffs claim that they detrimentally relied on (1) misrepresentations contained in offers of loan modification assistance advertised by…