Editor: David Reiss
Brooklyn Law School

September 26, 2013

California Court Rules That MERS Did Not Breach the Implied Covenant of Good Faith By Initiating Non-Judicial Foreclosure

By Ebube Okoli

The United States District Court for the Northern District of California in Winter v. Chevy Chase Bank, No. C 09-3187 SI (N.D. Cal. 2009) found that despite the plaintiff’s allegations, MERS had not committed negligence or breached the implied covenant of good faith and fair dealing when it initiated non-judicial foreclosure proceedings against the plaintiff.

Plaintiff Gwendolyn Winter initiated an action in state court against defendants Chevy Chase Bank, Gabrielle Benedetto; U.S. Bank N.A. as Trustee for CCB Libor Series 2005-C Trust; MERS; as well as several unnamed defendants. The plaintiff alleged federal and state law claims related to the mortgage, mortgage default, foreclosure, and sale of plaintiff’s primary residence.

Plaintiff also filed suit against defendants in alleging negligence; breach of contract; breach of fiduciary duty; intentional infliction of emotional distress; fraud and misrepresentation; violations of state and federal lending laws; false advertising and unfair competition under federal and state law; and federal RICO violations. However, after considering the plaintiff’s contentions, the court eventually dismissed the claims.

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