This Subprime Bubble Will Burst In State Court

Mireles v. Wells Fargo Bank, N.A., et al, 2012 WL 84723 (C.D. Cal. Jan. 11, 2012).

In an action brought by borrowers alleging fraudulent and negligent misrepresentation against national banks, a district court remanded the case to state court, finding that the defendants primarily failed to meet their burden to establish that this was a mass action under CAFA.

The borrowers brought an action in the Los Angeles Superior Court alleging fraudulent concealment, misrepresentation, and violation of California's Unfair Competition Law ("UCL") relating to the way the defendants serviced their respective mortgages. The complaint contained various allegations regarding the citizenship of the parties and the amount-in-controversy. The complaint listed 108 plaintiffs, all of whom were alleged to reside and own property in California. The complaint named nine defendants, all of whom were national banking institutions except Cal-Western Reconveyance Corporation