Gale v. First Franklin Loan Servs.

After Lender failed to respond to Plaintiff's correspondence regarding ownership of his loan, Lender foreclosed on Borrower's property. Plaintiff filed suit against all the actors involved (Defendants), alleging violations of the Truth in Lending Act (TILA) , seeking injunctive relief against foreclosure, and claiming breach of contract, failure to act in good faith, and wrongful foreclosure under Nevada law. The district court dismissed Plaintiff's Nevada law claims with prejudice. Plaintiff then filed an amended complaint claiming a breach of the covenant of good faith and fair dealing. The court dismissed the amended complaint without leave to amend. The Ninth Circuit Court of Appeals (1) affirmed the district court's dismissal of Plaintiff's TILA and breach of the covenant of good faith and fair dealing claims, as Lender was not legally required to respond to Plaintiff's correspondence in its capacity as loan servicer; and (2) vacated the district court's dismissal of Plaintiff's state law claims regarding the foreclosure of Plaintiff's property and remanded those remaining claims to the district court.