Sroka

FACTS AND PROCEDURAL HISTORY

In 2003 plaintiff borrowed $645,000 from defendant and executed a note and deed of trust secured by his residence in defendant’s favor. In 2011, after he stopped making payments, defendant’s agent recorded a Notice of Default and Election to Sell Under Deed of Trust and a Notice of Trustee Sale, after which plaintiff filed suit. His initial complaint contained causes of action for breach of contract and the implied covenant of good faith and fair dealing violation of Civil Code sections 2923.5 and 2941.9, unfair competition under section 17200, and declaratory relief. The court sustained the demurrer to all causes of action without leave to amend except the section 17200 violation, for which it granted plaintiff leave to amend.

2 In the first amended complaint for violation of section 17200, plaintiff alleged his loan was securitized. He pleaded that despite having transferred the loan to a trust in connection with the securitization, defendant collected plaintiff’s monthly payments without authority to do so. He further alleged defendant commenced a nonjudicial foreclosure despite the fact it was neither a trustee, mortgagee nor beneficiary and had…