Goldie v. Caliber Home Loans, Inc.

GEORGE GOLDIE, Plaintiff, v. CALIBER HOME LOANS, INC., et al., Defendants.

No. 2:16-cv-00962-KJM-DB

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA

September 27, 2018

ORDER

Defendant Caliber Home Loans, Inc. argues it entered into an enforceable settlement agreement with plaintiff George Goldie that requires Goldie to dismiss this action. Goldie disagrees. For the following reasons, the court GRANTS defendant's motion to enforce the settlement and directs defendant to submit an updated application for attorneys' fees.

I. FACTUAL AND PROCEDURAL HISTORY

A. Goldie's Complaint

Plaintiff George Goldie ("Goldie") alleges the servicer of his mortgage, defendant Caliber Homes Loans, Inc. ("Caliber"), wrongfully sold Goldie's home at a trustee's sale. Compl., ECF No. 1, Ex. A. Goldie sued Caliber in state court for wrongful foreclosure, negligence, negligence in sales price and numerous violations of the California Homeowner Bill of Rights ("HBOR"). Id. Caliber removed the case to this court. Notice of Removal, ECF No. 1 (May 5, 2016).

B. The Parties Continue Court Deadlines Four Times to Negotiate Settlement by Way of Loan Modification

After removal, the parties stipulated to extend Caliber's time to respond to Goldie's complaint five times, representing in the latter four stipulations that they were negotiating a possible settlement "by way of loan modification" and wished to avoid "incurring litigation costs and expenses." ECF No. 8 (May 11, 2016); ECF No. 9 (June 7, 2016); ECF No. 12 (Aug. 3, 2016); ECF No. 15 (Aug. 26, 2016); ECF No. 19 (Oct. 14, 2016). The final stipulation explained that "on September 21, 2016, Caliber informed Plaintiff that the loan modification package was complete and currently under review" as the parties continued negotiating a possible settlement by way of loan modification. ECF No. 19 at 2.

C. Caliber's Loan Offer and Goldie's Acceptance

On October 21, 2016, a week after the parties represented to the court that Caliber was reviewing Goldie's complete loan modification package, Caliber's counsel sent Goldie's counsel, Russell A. Wyatt, a formal settlement offer. The subject line included the name and number of the instant case, and the body offered Goldie either (1) a trial period plan ("TPP") to secure a loan modification or (2) $25,000 in relocation assistance. Caliber Ex. A, ECF No. 42-1, A-1 - A-2. Caliber explained that if Goldie accepted either offer, Caliber "will require a dismissal of the lawsuit and a release/settlement agreement regarding the claims in the pending lawsuit," which Caliber would draft and send to Goldie. Id. at A-2. Caliber noted "the terms contained in the written offer and in the release/settlement agreement shall control over any contrary terms contained in this letter" and that it was reserving all rights and remedies until a fully executed written agreement was finalized. Id.

/////

/////

///// Ten days later, on October 31, 2016, Justin Monaco¹ of Wyatt's office sent an email to Caliber's counsel with a subject line reading, "George Goldie v. Caliber Home Loans, Inc., et al." Caliber Ex. B, ECF No. 42-1 at B-1. The body of the email reads, in full: "Today we reviewed the terms of the trial period plan offered by your client. Mr. Goldie accepts them." Id.; see Goldie Decl., ECF No. 46-2 ¶ 11 ("I accepted the TPP offer from Caliber on October 31, 2017."²). Caliber's counsel responded that evening: "This email confirms your client's acceptance of the trial period plan offered by Caliber. [¶] We will prepare the settlement documents." Caliber Ex. B at B-2.

Two days later, on November 2, 2016, Caliber sent the TPP as proposed to Goldie's counsel. Id. at B-3 (email attaching TPP); see id. at B-5 - B-8 (proposed TPP requiring Goldie to make three $6,200.16 payments on the first of December 2016, and January and February 2017 to receive a loan modification agreement). Monaco emailed the TPP, executed by Goldie, on November 4, 2016. Id. at B-9 (email); see id. at B-11 - B-14 (executed TPP).³ Six days later, Monaco emailed a copy of Goldie's December 1, 2016 TPP payment and asked whether Caliber "rescinded the Trustees [sic] Deed Upon Sale yet?" Id. at B-15; see id. at Ex. B-17 (Goldie's Dec. 1, 2016 payment to Caliber). The trustee executed the rescission on December 15, 2016 and recorded it on December 19, 2016. Caliber RJN Ex. C, ECF No. 44-1 at C-1 - C-2.

With the TPP executed and performance underway, Caliber's counsel began asking Goldie to file a notice of settlement. See Caliber Ex. B at B-20 (Dec. 5, 2016 email request); id. at B-22 (Dec. 14, 2016 email request). On December 15, 2016, Joseph Chin⁴ responded on Wyatt's behalf, explaining Wyatt "would be agreeable to an extension of time foryour client to file their responsive pleading . . . ." Id. at B-23. Caliber's counsel responded that evening: "[because] the parties have reached an agreement to resolve this matter, and your client has signed a loan modification agreement, we think a notice of settlement is more appropriate . . . ." Id. at B-24.

Goldie then introduced the possibility of monetary compensation. Specifically, on December 16, 2016, Caliber's counsel claims Wyatt called her and stated that he would file a notice of conditional settlement and that Goldie may have "compensable damages." Mori Decl., ECF No. 42 ¶ 20; see Wyatt Decl., ECF No. 46-1 ¶¶ 5-6 (declaring that on an unspecified date after Goldie executed the TPP, Wyatt informed Caliber's counsel that Goldie "would consider settling his action in exchange for monetary compensation"). Caliber's counsel responded in a December 19, 2016 email, expressing her "surprise[] to hear . . . your position that your client may have 'compensable damages,' because that was never part of any previous conversations or documents." Caliber Ex. B-26. She attached Caliber's settlement offer letter and Goldie's acceptance, noting neither provided for payment if Goldie accepted the TPP. Id. The email ended, "Please let us know how you want to proceed." Id. Wyatt never directly responded. Mori Decl. ¶ 22. But he "belie[ved] that both sides desired to settle this action and the only remaining obstacle to the finalized settlement was the payment of an agreeable amount." Wyatt Decl. ¶ 7.

Nine days later, on December 28, 2016, Caliber's counsel sent Wyatt and Monaco a draft settlement agreement and again asked plaintiff to file a notice of settlement. Caliber Ex. B at B-30. The draft agreement required Caliber to rescind the trustee's sale and modify Goldie's loan in accordance with the TPP, and required Goldie to release Caliber and dismiss the instant action, but included no provision for payment to Goldie. Caliber Ex. B-31-B-42 (draft agreement). Wyatt did not respond. Mori Decl. ¶¶ 22, 38. On January 4, 2017, Caliber's counsel followed up with a revised proposed settlement agreement that required Caliber to dismiss its unlawful detainer action pending against Goldie in state court but included no provision for payment to Goldie, and Caliber again asked why no notice of settlement had been filed. Caliber Ex. B at B-43; see Caliber Ex. B-44-B-65 (proposed revised settlement agreement with redline version attached). Wyatt did not respond. Mori Decl. ¶¶ 22, 38, 41.

D. Goldie's Notice of Conditional Settlement, Acceptance of a Modification Agreement and Representations to the Court

On January 6, 2017, two days after receiving Caliber's second proposed settlement agreement, Goldie filed a notice of conditional settlement. ECF No. 21. The notice stated a "Settlement Agreement and Mutual Release ('Settlement Agreement') [] is currently being finalized between the Parties." Id. at 2. Goldie further explained, "[t]he effect of the Settlement Agreement is conditional where the satisfaction of each condition is anticipated to occur over the next 21 calendar days from this filing, and with a dismissal to follow not later than 30 days from the date of this Notice." Id. That day, the court vacated all deadlines because, "[p]ursuant to the representations of Plaintiff, the court has determined this case has settled." ECF No. 22. The court ordered the parties to file dispositional documents by February 6, 2017. Id.

Goldie missed that deadline and instead filed a February 7, 2017 extension to file dispositional documents, representing that "finalization of the Settlement Agreement was conditioned upon full performance of certain negotiated terms which, by their very nature, required the passage of time and subsequent acts by and between the parties which have yet to be fully performed." ECF No. 23. Then, on March 3, 2017, after Goldie made his final TPP payment, Caliber offered him a loan modification. Caliber Ex. F, ECF No. 42-1 at F-1 - F-2. The offer letter explained that Caliber's TPP offer required Goldie to dismiss this suit and sign the settlement agreement, but "[t]o date, even though the borrower accepted the Trial Period Plan and successfully performed, the lawsuit has not been dismissed and the borrowers have not signed the settlement agreement." Id. at F-2. The letter advised that to accept the loan modification, Goldie "will need to dismiss the lawsuit and sign the settlement agreement, pursuant to our previous letter regarding the Trial Period Plan." Id. Goldie filed his second extension request on March 6, 2017, again noting "full performance of certain negotiated terms" would finalize the parties' agreement. ECF No. 25 at 2. Four days later, on March 10, 2017, Goldie signed the modification, Caliber Ex. H, ECF No. 42-1 at H-1 - H-5, and began submitting payments under that agreement, see Caliber Ex. J, ECF No. 42-1 at J-1 - J-6.

///// On April 6, 2017, with his modification secure, Goldie filed his third request for additional time to file dispositional documents. ECF No. 27. For the first time, Goldie represented that "the details and terms of the settlement negotiations were still on-going" and "[t]he parties are engaged in on-going and...