California Federal Court Dismisses TILA, Fraud, Unfair Business Practices, and Quiet Title Claims

On August 25, the U.S. District Court for the Northern District of California granted defendant’s motion to dismiss without prejudice because, inter alia, plaintiff failed to comply with Truth in Lending Act (TILA) requirements and did not plead his fraud claim with particularity. Briosos v. Wells Fargo Bank, 2010 WL 3341043, No. C 10-02834 LB (N.D. Cal. Aug. 25, 2010). Plaintiff alleged that defendant made fraudulent statements and concealed information about his ability to afford the loans in order to induce him to obtain a refinance loan. Plaintiff also alleged that the defendant failed to provide him with disclosures required under TILA and refused his request to rescind one of the loans. The court found that although plaintiff had not filed suit until after the three-year limitations period for TILA rescission claims had expired, plaintiff had timely exercised his right to rescission by making a rescission request by letter within three years after the transaction was consummated. However, plaintiff did not adequately allege facts demonstrating his ability to tender the loan proceeds, and thus his TILA rescission claim failed. The court further held that plaintiff failed to plead fraud with particularity and failed to assert his quiet title claim in a verified complaint, as is required under California law. As plaintiff failed to sufficiently plead his fraud and TILA claims, his § 17200 claim could not proceed because that claim depends on an underlying violation of federal or state law.