Megha v. L. A. Cnty. Recs Office

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Falguni Megha v. Los Angeles County Recorders Office, et al.

No. CV 22-6076-DMG (Ex)

United States District Court, C.D. California

September 1, 2023

Present: The Honorable DOLLY M. GEE, UNITED STATES DISTRICT JUDGE

CIVIL MINUTES-GENERAL

Proceedings IN CHAMBERS-ORDER RE MOTIONS TO DISMISS, REQUEST FOR ENTRY OF DEFAULT, AND EX PARTE APPLICATIONS [11] [13] [14] [15] [31] [45] [54] [55] [73] [74] [78]

On August 26, 2022, Plaintiff Falguni Megha filed a Complaint in this Court against Defendants Los Angeles County Recorder's Office (the “County”), First American Title Company (“First American”), Canopy Land LLC (“Canopy Land”), Shau Ching Chang Charles Chen, Chen Shan Horn, Coldwell Banker Dynasty, CBD Investment, Inc., Kelvin K. Chang, Jessica Chen, Karla Pozo Perez, Zillow, Inc., and Zillow Group, Inc. [Doc. # 1.] Pending before the Court are five motions to dismiss. [See Doc. ## 11, 13, 14, 15, 31.] Plaintiff, who is proceeding pro se,^[1] filed an omnibus opposition to all five motions. [Doc. # 39.]^[2]

On April 25, 2023, Plaintiff also filed an ex parte application for a permanent injunction (“EPA”). [Doc. # 54.] Defendant the County of Los Angeles filed an opposition, in which various other Defendants joined. [Doc. ## 53, 71, 72.] Plaintiff also requested entry of default against Karla Pozo Perez. [Doc. # 55.] On May 9, 2023, Plaintiff filed a request to compel First American to arbitrate her claims, an application for a writ of possession, and exhibits in support thereof. [Doc. ## 73, 74, 75.] On May 15, 2023, the County filed a second motion to dismiss, seeking to quash Plaintiff's attempt to serve her Complaint on the County for a second time. [Doc. # 78.]

The Court has carefully considered the parties' written submissions and now renders its decision.

I. FACTUAL AND PROCEDURAL BACKGROUND

A. Plaintiff's Allegations

Plaintiff seeks relief relating to a piece of real property located at 501 Looking Glass Drive in Diamond Bar, California (the “Property”). Compl. ¶ 1. She previously possessed full equitable and legal title to the Property. Id. at ¶ 10. But Defendants unlawfully obtained Plaintiff's personal information, including access to her email. Id. at ¶ 36. Using that information, Defendants attached a lien on the property based on loans from 2006. Id. at ¶ 10. The legal description of the property was altered, and Plaintiff's name was forged, to create the illusion of a sale of the property on November 3, 2021 to Jessica Chen and Canopy Lands, LLC. Id. at ¶¶ 10, 32.

Plaintiff further alleges that the County possessed legal documents reflecting Plaintiff's ownership interest in the property, but altered or removed those documents. FAC ¶ 23. The County then allowed Canopy Lands to record a false Notice of Default and Transfer of Title. Id. at ¶¶ 23, 28. Plaintiff alleges that Pozo Perez, a notary, committed notary fraud, though it is unclear how. FAC ¶ 11. When Plaintiff noted the County's falsification of records, they told her to file a claim. Id. She did so, but it was denied. See FAC ¶ 12; see also id., Exs. B, C. Plaintiff later discovered that Coldwell and CBD Investments were behind Canopy Lands' actions, but Coldwell and CBD Investments denied knowledge of Canopy Lands. Id. at ¶ 24.

After Canopy Lands bought the property, Plaintiff was evicted. FAC ¶ 33.

B. Request for Judicial Notice

Certain Defendants ask the Court to take judicial notice of public documents submitted in support of their motions, including documents recorded with the County and records from other courts. See First American Request for Judicial Notice (“RJN”) [Doc. # 11-2]; Canopy RJN [Doc. # 14-2]. Federal Rule of Evidence 201 permits a court to take judicial notice of facts “not subject to reasonable dispute” and that the court “can accurately and readily determine from sources whose accuracy cannot reasonably be questioned.” Fed.R.Evid. 201(b). Government documents, court filings, and court orders are matters of public record and are proper subjects of judicial notice. Reyn's Pasta Bella, LLC v. Visa USA, Inc., 442 F.3d 741, 746 n.6 (9th Cir. 2006); Friends of the Clearwater v. Higgins, 523 F.Supp.3d 1213, 1222 (D. Idaho 2021) (courts “may take judicial notice of government documents to prove their existence and contents ”). Accordingly, the Court GRANTS the RJNs.

Those documents show that a deed was recorded on July 6, 2001, granting ownership of the Property to Plaintiff. First American RJN Ex. 1. She subsequently transferred the property to “Falguni Megha, Trustee of the Megha Family Revocable Trust.” Id., Ex. 2. On May 9, 2006, a deed of trust was recorded, pursuant to which Plaintiff granted First American “all of [her] right, title, and interest in and to” the Property, to be held in trust for the benefit of Discover Bank, as security against a revolving line of credit (the “Citizens Deed of Trust”). See Canopy RJN Ex. 1 at 7.^[3] On July 8, 2013, a grant deed was recorded transferring the Property from Falguni Megha, Trustee of the Megha Family Revocable Trust, to Koya Singh Revocable Family Trust. First American RJN Ex. 4. On October 23, 2013, Discover Bank recorded an assignment of its mortgage on the Property to RBS Citizens, N.A.^[4] Id., Ex. 4.

On November 30, 2015, Citizens filed a verified complaint in Los Angeles County Superior Court for declaratory relief, for an equitable lien, and to quiet title. Canopy RJN Ex. 2. Citizens alleged that on June 18, 2014, Plaintiff had improperly caused to be recorded a deed of trust in favor of CalHFA Mortgage Assistance Corporation, in violation of Citizens' rights. See Canopy RJN Ex. 2 at ¶¶ 9-15. On February 7, 2018, the Superior Court entered judgment in favor of Citizens and against Plaintiff in that action. See Canopy RJN Ex. 3. The Reconveyance to CalHFA was canceled, and the Citizens Deed of Trust reinstated. Id. at 29. Although Plaintiff appealed that judgment, she dismissed the appeal. See Canopy RJN Exs. 10, 11.^[5]

On October 10, 2019, she filed another action against Citizens, which was removed to this Court. See Falguni MeghaSingh v. Capital One NA, et al., Case No. CV 19-9982-MWF (JPRx) (“MeghaSingh”). In an Order dated March 6, 2020, this Court found that her claims for identity theft, quiet title, and slander of title against Citizens were barred by res judicata, and dismissed them without leave to amend. See MeghaSingh, Case No. CV 19-9982-MWF (JPRx) [Doc. # 29]. The Court dismissed, with leave to amend, Plaintiff's claims against Capital One N.A. and her claim for violation of the One-Action Rule against Citizens. Id. at 15. Plaintiff appealed that order, but the appeal was dismissed for lack of jurisdiction. See MeghaSingh, Case No. CV 19-9982-MWF (JPRx) [Doc. # 43]. The Court ultimately dismissed the action with prejudice after Plaintiff failed to file an amended complaint. See MeghaSingh, Case No. CV 19-9982-MWF (JPRx) [Doc. # 44]. Plaintiff did not appeal that order.

On March 19, 2019, a Notice of Default and Election to Sell Under Deed of Trust was recorded against the Property pursuant to the Citizens Deed of Trust. Canopy RJN Ex. 4. On February 8, 2021, a Notice of Trustee's Sale was recorded against the Property, notifying Plaintiff of a sale to occur on March 25, 2021. Canopy RJN Ex. 5. On November 19, 2021, a Trustee's Deed Upon Sale was recorded, conveying the Property to Canopy Land. Canopy RJN Ex. 6. On February 7, 2022, the Clerk of the Los Angeles County Superior Court entered a default judgment of unlawful detainer against Plaintiff. Canopy RJN Ex. 8.

On April 6, 2022, Plaintiff, proceeding pro se, filed an action in this Court for replevin of the Property. See Falguni Megha v. Shau Ching Chang, et al., Case No. CV 22-2319-MWF (JPRx) (“Shau Ching Chang”). After the Court denied, on procedural grounds, Plaintiff's application for a writ of attachment, Plaintiff dismissed the action.

Plaintiff filed this action on August 26, 2022. She asserts claims for (1) conversion, (2) violation of California Government Code section 6200, a criminal statute that prohibits stealing, destroying, or falsifying public records, (3) fraud under 18 U.S.C. § 1344 or 18 U.S.C. § 472, (4) negligence, and (5) identity theft under 18 U.S.C. § 1028. [See Doc. # 1.]

II. LEGAL STANDARD

Pursuant to Federal Rule of Civil Procedure 12(b)(6), a defendant may seek dismissal of a complaint for failure to state a claim upon which relief can be granted. A court may grant such a dismissal only where the plaintiff fails to present a cognizable legal theory or fails to allege sufficient facts to support a cognizable legal theory. Shroyer v. New Cingular Wireless Servs., Inc., 622 F.3d 1035, 1041 (9th Cir. 2010). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.'” See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. Although courts must accept all factual allegations as true on a Rule 12(b)(6) motion, legal conclusions are not entitled to the assumption of truth. Id. Courts may also consider “materials incorporated into the complaint or matters of public record.” Coto Settlement v. Eisenberg, 593 F.3d 1031, 1038 (9th Cir. 2010).

Because Plaintiff is a pro se litigant, the Court liberally construes the complaint and “afford[s] [her] the benefit of any doubt.” Hebbe v. Pliler, 627 F.3d 338, 342 (9th Cir. 2010).

III. DISCUSSION

A. No Private Right of Action under Federal Claims

The threshold issue in...