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Jordan v. Paul Fin., LLC

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA - SAN FRANCISCO DIVISION
Mar 21, 2013
Case No. 3:07-cv-04496-SI (N.D. Cal. Mar. 21, 2013)

Opinion

Case No. 3:07-cv-04496-SI

03-21-2013

GREGORY M. JORDAN, ELI GOLDHABER and JOSEPHINA GOLDHABER individually and on behalf of all others similarly situated, Plaintiffs, v. PAUL FINANCIAL, LLC, LUMINENT MORTGAGE CAPITAL, INC., HSBC BANK USA, N.A., AS TRUSTEE OF LUMINENT MORTGAGE TRUST 2006-2, RBS FINANCIAL PRODUCTS INC., and DOES 2 through 10 inclusive, Defendants.

SMOGER & ASSOCIATES Gerson H. Smoger (SBN 79196) Steven M. Bronson (SBN 246751) ARBOGAST BOWEN LLP David M. Arbogast (SBN 167571) BERNS WEISS LLP Jeffrey K. Berns (SBN 131351) Lee A. Weiss (Admitted Pro Hac Vice ) Attorneys for Plaintiff and the Class and the RBS SubClass


SMOGER & ASSOCIATES
Gerson H. Smoger (SBN 79196)
Steven M. Bronson (SBN 246751)
ARBOGAST BOWEN LLP
David M. Arbogast (SBN 167571)
BERNS WEISS LLP
Jeffrey K. Berns (SBN 131351)

-and- Lee A. Weiss (Admitted Pro Hac Vice) Attorneys for Plaintiff and the Class and the RBS SubClass

JOINT NOTICE OF SETTLEMENT AND

STIPULATION AND [PROPOSED]

ORDER TO RESCHEDULE CASE

MANAGEMENT CONFERENCE


Current date: March 29, 2013

Judge: Hon. Susan Illston

Pursuant to Federal Rule of Civil Procedure 6(b) and Local Rule 6-1(b), Plaintiffs and Class Representatives Eli Goldhaber and Josephina Goldhaber ("Class Representatives"), Defendant Paul Financial, LLC ("Paul Financial"), and Defendant RBS Financial Products Inc. ("RBS") (together, with Plaintiffs, the "Parties"), through their undersigned counsel, stipulate as follows:

WHEREAS, by Order dated July 27, 2011 (Dkt. No. 385), this Court dismissed HSBC Bank USA, N.A. and Luminent Mortgage Trust 2006-2;

WHEREAS, by Order dated August 23, 2012 (Dkt. No. 413), this Court denied RBS's Motion for Summary Judgment and granted Plaintiffs' Motion for Class Certification;

WHEREAS, by Order dated September 26, 2012 (Dkt. No. 419), this Court appointed Class Representatives and Class Counsel and certified the Class and the RBS SubClass as follows:

The Class
All individuals who, within the four-year period preceding the filing ofPlaintiffs' original complaint through the date that notice is mailed to the Class (the "Class Period"), obtained an Option ARM loan from Paul Financial, LLC that either (a) was secured by real property located in the State of California, or (b) was secured by real property located outside the State of California where the loan was approved in or disseminated from California, which loan had the following characteristics: (i) the yearly numerical interest rate listed on page one of the Note is 3.0% or less; (ii) in the section entitled "Interest," the Promissory Note states that this rate "may" instead ofwill" or "shall" change (e.g., "The interest rate I will pay may change"); (iii) the yearly numerical interest rate listed on page one of the Note was only effective through the due date for the first monthly payment and then adjusted to a rate which is the sum of an "index" and "margin;" and (iv) the Note does not contain any statement that paying the amount listed as the "initial monthly payment(s)," will definitely result in negative amortization or deferred interest. Excluded from the Class are Defendants' employees, officers, directors, agents, representatives, and their family members, as well as the Court and its officers, employees, and relatives.
The RBS SubClass
All members of the Class whose Option ARM loans were sold or otherwise assigned by Paul Financial, LLC to RBS Financial Products Inc.

WHEREAS, on February 7, 2013, Class Representatives and RBS participated in a day-long mediation session before Professor Eric D. Green of Resolutions, LLC;

WHEREAS, Class Representatives and RBS have agreed to a settlement in principle, but require an additional six weeks time to finalize a settlement agreement, and to prepare and file a motion for preliminary approval;

WHEREAS, this Court scheduled a Further Case Management Conference for March 29, 2013, and ordered a joint case management conference statement be filed one week prior;

WHEREAS, no Party will be prejudiced by the relief requested in this Notice of Settlement and Stipulation; and

WHEREAS, this Notice of Settlement and Stipulation is without prejudice to, or waiver of, any rights or defenses otherwise available to the Parties in this action;

NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED, between Plaintiffs, by their undersigned counsel, and Defendants Paul Financial, LLC and RBS Financial Products Inc., by their undersigned counsel, that, subject to the approval of this Court:

(1) the Further Case Management Conference set for March 29, 2013 shall be continued to May 10, 2013 at 3:00 p.m., or at a time thereafter convenient for the Court;
(2) the Parties shall submit a full Joint Case Management Statement in compliance with Civil L.R. 16-9 and the Standing Order for All Judges of the Northern District of California one week prior to the date of the scheduled Further Case Management Conference; and
(3) if the Parties file a motion for preliminary approval of their settlement on or before_the due date of the Joint Case Management Statement, then the Further Case Management Conference shall be taken off calendar.

Respectfully submitted,

________________________

Lee A. Weiss (admitted pro hac vice)

lweiss@law111.com

BERNS WEISS, LLP

585 Stewart Avenue, Suite L-20

Garden City, New York 11530

Telephone: (516) 222-2900

Facsimile: (818) 999-1500

-and

Jeffrey K. Berns (SBN 131351)

jberns@law111.com

BERNS WEISS LLP

20700 Ventura Boulevard, Suite 140

Woodland Hills, CA 91364

Telephone: (818) 961-2000

Facsimile: (818) 999-1500

Attorneys for Plaintiffs

________________________

Benjamin B. Klubes (Admitted Pro Hac Vice)

bklubes@buckleysandler.com

Michelle L. Rogers (Admitted Pro Hac Vice)

mrogers@buckleysandler.com

BUCKLEYSANDLER LLP

1250 24th Street NW, Suite 700

Washington, DC 20037

Telephone: (202) 349-8000

Facsimile: (202) 349-8080

Leah Mosner (SBN 266645)

lmosner@buckleysandler.com

BUCKLEYSANDLER LLP

100 Wilshire Boulevard, Suite 1000

Santa Monica, CA 90401

Telephone: (310) 424-3900

Facsimile: (310) 424-3961

Attorneys for Defendant

RBS Financial Products Inc.

________________________

John P. Christian (SBN 111444)

jchristian@weintraub.com

WEINTRAUB TOBIN CHEDIAK COLEMAN

GRODIN

475 Sansome Street, Suite 1800

San Francisco, CA 94111

Telephone: (415) 433-1400

Facsimile: (415) 433-3883

ECF CERTIFICATION

Pursuant to Local Rule 5-1(i)(3), the filing attorney attests that he has obtained concurrence regarding the filing of this document from the signatories to the document.

________________________

Lee A. Weiss (admitted pro hac vice)

lweiss@law111.com

BERNS WEISS, LLP

585 Stewart Avenue, Suite L-20

Garden City, New York 11530

Telephone: (516) 222-2900

Facsimile: (818) 999-1500

[PROPOSED] ORDER

Pursuant to the Joint Notice of Settlement and Stipulation of counsel and for good cause shown, IT IS HEREBY ORDERED that:

(1) the Further Case Management Conference is continued to May 10, 2013 at 3:00 p.m.;
(2) the Parties shall submit a full Joint Case Management Statement in compliance with Civil L.R. 16-9 and the Standing Order for All Judges of the Northern District of California on or before May 3, 2013;
(3) if the Parties file a motion for preliminary approval of their settlement on or before April 26, 2013, then the Further Case Management Conference shall be taken off calendar; and
(4) the proceedings in this action shall remain stayed in their entirety.

IT IS SO ORDERED.

________________________

Judge Susan Illston

UNITED STATES DISTRICT JUDGE


Summaries of

Jordan v. Paul Fin., LLC

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA - SAN FRANCISCO DIVISION
Mar 21, 2013
Case No. 3:07-cv-04496-SI (N.D. Cal. Mar. 21, 2013)
Case details for

Jordan v. Paul Fin., LLC

Case Details

Full title:GREGORY M. JORDAN, ELI GOLDHABER and JOSEPHINA GOLDHABER individually and…

Court:UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA - SAN FRANCISCO DIVISION

Date published: Mar 21, 2013

Citations

Case No. 3:07-cv-04496-SI (N.D. Cal. Mar. 21, 2013)