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Jamil L. White (Bar No. 244028) Michae] D. Maloney (Bar No. 208297) LOUIS I WHITE 5600 H Street, Suite 100 Sacramento, Califomia 95819 Telephone: (916)594-7241 Facsimile: (916)594-7247 Attomeys for Plaintiff MARSHA SCRIBNER

Superior Court Of California 02/27/2012

IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SACRAMENTO

MARSHA SCRIBNER, an individual; Plaintiff,

Case No.: Complaint for Dainages and Equitable Relief for: 1. 2. 3. 4. Fraud Breach of Fiduciary Duty Negligence Violation of Cal. Bus. & Prof. Code 17200 et seq. 5. Negligent Misrepresentation 6. Intentional Infliction of Emotional Distress
Department Assignments

CALIFORNIA LOAN SERVICING, LLC, a business entity; FRANK YAN, an individual; JAMES SALONDAKA, an individual; SCME MORTGAGE BANKERS, INC., a business entity; BANK OF AMERICA, a business entity; and DOES 1 through 100, inclusive. Defendants.

Demand for Jury Trial

Case Management 39 Law and Motion 54 Minors Compromise 22

PRELIMINARY ALLEGATIONS 23 1. 24 25 26 27 28 MARSHA SCRIBNER ("Plaintiff) is the victim offraudulentactivities committed by her lender and brokers in connection with a residential mortgage loan transaction ("Loan"). Although Plaintiffhas diligently met her obligations relating to the Loan, she continues to suffer damages relating to the fraudulent activities ofher lender and broker.
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COMPLAINT

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2.

Plaintiff is the rightful owner of real property located in Sacramento County and

commonly known as 8822 BREAKER POINT COURT, ELK GROVE, CA 95758 ("Property"). Venue is therefore proper in Sacramento County. PARTIES 3. At all times relevant. Plaintiff was and is an individual residing in the State of Califomia,

County of Sacramento. 4. Plaintiff is informed, believes, and thereon alleges, that at all times mentioned herein,

CALIFORNIA LOAN SERVICING, LLC ("CAL-LOAN") is a diversifiedfinancialmarketing and/or services corporation engaged primarily in residential mortgage banking, loan servicing, and/or related businesses. CAL-LOAN is believed to be a residential mortgage broker who falsely induced Plaintiff into refinancing her home. Plaintiff is informed and believes, and thereon alleges, that at all times mentioned herein, CAL-LOAN is a limited liability corporation regularly conducting business in the State of Califomia. 5. Plaintiff is informed, believes, and thereon alleges, that at all times mentioned herein,

Defendant FRANK YAN ("YAN") was the broker, employee, agent and/or representative of Defendant CAL-LOAN who solicited Plaintiff to refinance her loan. Plaintiff fiirther alleges that YAN was one of two brokers who misrepresented the terms of the Loan. Defendant YAN held himself out to Plaintiff as the broker, representative, and employee ofDefendant CAL-LOAN, and was acting within the course and scope of that employment when he came into contact with Plaintiff and negotiated the Loan at issue. Plaintiff is informed and believes, and thereon alleges,

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that at all times mentioned herein. Defendant YAN was and is an individual residing in the State of Califomia. 6. Plaintiff is infonned, believes, and thereon alleges, that at all times mentioned herein.

Defendant JAMES SALONDAKA ("SALONDAKA") was one of two brokers, employees, agents and/or representatives ofDefendant CAL-LOAN, who misrepresented the terms of the Loan to Plaintiff. Defendant SALONDAKA held himself out to Plaintiff as the broker, representative, and employee ofDefendant CAL-LOAN, and was acting within the course and scope of that employment when he came into contact with Plaintiff and negotiated the Loan at

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issue. Plaintiff is informed and believes, and thereon alleges, that at all times mentioned herein. Defendant SALONDAKA was and is an individual residing in the State of Califomia. 7. Plaintiff is informed and believes, and thereon alleges, that at all times mentioned herein,

SCME MORTGAGE BANKERS, INC. ("SCME") is a diversifiedfinancialmarketing and/or services corporation engaged primarily in residential mortgage banking, loan servicing, and/or related businesses. Defendant SCME is believed to be the residential mortgage lender who originated PlaintifPs residential Loan. Plaintiff is informed and believes, and thereon alleges, that at all times mentioned herein, Defendant SCME is a corporation regularly conducting business in the State ofCalifomia. Defendant SCME is believed to have assigned, sold, and/or transferred its interest in the loan to Countrywide Home Loans. 8. Plaintiff is informed and believes, and thereon alleges, that at all times mentioned herein,

BANK OF AMERICA ("BOFA") is a diversifiedfinancialmarketing and/or services corporation engaged primarily in residential mortgage banking, loan servicing, and/or related businesses. Plaintiff is informed, believes, and thereon alleges that, in July 2008, BOFA purchased

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Countrywide Home Loans, thereby acquiring Countrywide Home Loans' interest in PlaintifPs Loan. 9. Plaintiff is ignorant of the tme names and capacities of the Defendants sued herein under

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the fictitious names Does 1 through 100, inclusive, and Plaintiff will amend this complaint to

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allege such names and capacities at such time when they are ascertained. Each fictitiously named

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Defendant is responsible in some manner for the wTongfiil acts complained of herein.

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10. Plaintiff is informed, believes, and thereon-alleges that at all times herein mentioned, each

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Defendant was acting as the agent, servant, employee, partner, co-conspirator, and/or joint

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venturer of each of the remaining Defendants. Each Defendant was acting in concert with each

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remaining Defendant in all matters alleged, and each Defendant has inherited any and all

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violafions or liability of their predecessors-in-interest. Additionally, each Defendant has passed

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any and all liability to their successors-in-interest, and at all times were acting within the course

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and scope ofsueh agency, employment, partnership, and/or concert of action.

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COMPLAINT

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STATEMENT OF FACTS In or about January 2007, Defendant YAN, as broker, agent, and representative of

Defendant CAL-LOAN, solicited Plaintiff by phone to discuss refinancing the mortgage on PlaintifPs Property. 12. After speaking to Defendant YAN, Plaintiff pursued refinancing her home loan with the

primary goal of consolidating her debts into a single payment. As such, at the direction and counsel ofDefendant YAN, Plaintiff decided to refinance the Property through CAL-LOAN. Plaintiff relied on Defendant YAN's promises that she would receive the best interest rates and loan available to her. 13. To this end. Plaintiff began working with Defendants YAN, SALONDAKA, and CAL-

LOAN (collectively, "BROKERS"). Defendants BROKERS held themselves out as qualified brokers representing Plaintiffs interests, and, as such, BROKERS owed Plaintiff fiduciary duties including, but not limited to, the duty to disclose all terms and conditions of the fransaction. Instead, Plaintiff, through her trust and reliance in BROKERS, was steered into executing an unfavorable loan without the full knowledge of its terms. 14. Over the phone. Plaintiff provided Defendant YAN with the information he requested in

order to complete a Uniform Residential Loan Application ("URLA"). Plaintiff was subsequently 17 18 19 20 21 22 2^ 24 25 26 27 28 contacted by a second agent of CAL-LOAN, Defendant SALONDAKA, who continued processing Plaintiffs loan application. As with YAN, SALONDAKA promised at all times to protect PlaintifPsfinancialwelfare through finding the best interest rates and loan available. 15. Plaintiff informed Defendants YAN and SALONDAKA that she wanted a standard, fixed

rate loan. Instead, BROKERS counseled Plaintiff that an interest-only loan would be in Plaintiffs best interest, purportedly based on the ability to pay a lower monthly payment. Based on thefinancialinformation provided by Plaintiff, BROKERS represented that the most favorable loan Plaintiff qualified for was an adjustable interest-only loan at 6.375%. Defendants BROKERS failed to disclose the negative aspects of this type of loan, including the inevitability of much higher payments once the rate began to adjust. Instead, BROKERS represented to Plaintiff that interest-only payments were the best option for PlaintifPs fmancial situation.

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16.

Defendants BROKERS fiirther represented to Plaintiff that she would be able to easily

obtain refinancing ofthe Loan in the future. In reliance on the advice and purported expertise of BROKERS, Plaintiff proceeded with the Loan fransaction. 17. Prior to closing. Plaintiff did not receive a copy of any of the Loan documents to review.

Upon closing, a notary presented Plaintiff for the first time with the relevant documents. Plaintiff is informed and believes, and thereon alleges, that an agent of CAL-LOAN instmcted that the loan documents be back dated to disguise that they had not been provided earlier. 18. Neither Defendant YAN nor SOLONDAKA was present at closing. Instead, BROKERS

sent a notary to Plaintiffs place of employment who rushed Plaintiff through signing during a break without any explanation of the documents and without sufficient opportunity to read the paperwork prior to signing. As such, Plaintiff did not notice that the material terms of the Loan differed from those promised to her by Defendants BROKERS. As a result of Defendants' conduct. Plaintiff had neither knowledge nor reasonable opportunity to leam the true terms of the Loan. 19. On Febmary 20, 2007, Plaintiff executed a promissory note ("Note") and Deed ofTrust

("Deed") in. favor ofDefendant SCME. The Deed was recorded on Febmary 28, 2007. The Deed contains a provision for attomey's fees. 17 20. 18 19 20 21 22 Plaintiff began making payments in accordance with the Loan, and Plaintiffhas continued to meet her obligations under the Loan. 21. In September 2010, Plaintiff became suspicious of the trae nature ofher loan after

receiving multiple solicitations from companies providing loan reviews. Based on these suspicions. Plaintiff hired an independent consulting company to review her loan documents. After this review was completed. Plaintiff leamed for the first time the extent of Defendants'

2-^ fraudulent acts as described herein. Had Plaintiff been aware of Defendants' unlawful acts at the 24 time of closing, Plaintiff would not have executed the Loan. As such, discovery was delayed 25 26 27 28 until September 2010 equitably tolling the applicable statute of limitations. 22. The review revealed that Defendants BROKERS misrepresented and/or concealed the tme

terms of the Loan. Specifically, YAN and SALONDAKA represented to Plaintiff that she would

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only be required to pay interest for the first five years. In actuality. Plaintiffs payments were stmctured to apply to the interest for the first ten years. 23. Likewise, the review revealed that after five years Plaintiffs interest rate would adjust and

could increase up to 11.375%. Plaintiff was never provided with an interest or adjustment rate schedule, and BROKERS never explained the significance of the adjustment or how it would be calculated. Additionally, the impact of the adjustment on the total cost of the Loan was never explained to Plaintiff. 24. At the time Defendants BROKERS procured the loan for Plaintiff, both YAN and

SALONDAKA expressly assured Plaintiff that they were acting in her best interests and providing her with the best loan available. Defendants BROKERS knew, or should have known, that their assurances regarding the nature of the loan were false and misleading. 25. In actuality. Defendants BROKERS received a greater commission or bonus for placing

borrowers in loans with relatively high yield spread premiums. As such, borrowers like Plaintiff were steered and encouraged into loans with unfavorable terms that had a specified risk grade less favorable than other risks for which the borrowers would have been qualified. 26. In addition. Plaintiff leamed for the first time through the review ofher loan documents

that BROKERS had a substantial financial interest in pushing Plaintiff into the Loan in the form of a yield spread premium. At no point in time did Defendants BROKERS disclose to Plaintiff 18 19 20 21 22 23 24 25 26 27 28 their financial interest in the Loan. 27. By thetimePlaintiff refinanced in Febmary 2007, an imminent crash in the housing

market was widely expected. Defendants BROKERS knew or should have known that there was a substantial risk that Plaintiffs Property value would decline in the years following this refinance. As such. Defendants BROKERS knew or should have knowoi that counseling Plaintiff to refinance into a volatile loan would negatively affect Plaintiff. 28. Likewise, said Defendants knew, or should have known, that their promises of refinancing

were false and misleading, inasmuch as they knew that the Loan was volatile and the market was poised to change. As such, by representing that the Loan was in Plaintiffs best interests and could be easily refinanced, Defendants BROKERS provided harmful and damaging advice to Plaintiff. 6
COMPLAINT

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29.

Furthermore, Defendant SCME knew, or should have known, that Defendant CAL-LOAN

and its agents. Defendants YAN and SALONDAKA, were engaging infraudulentconduct. Defendant SCME approved a loan application riddled with facial irregularities that would put Defendant SCME on notice that Defendants BROKERS breached their fiduciary duties, and thereby ratified thefraudulentconduct ofDefendants BROKERS. 30. Defendants BROKERSfraudulentiyinduced Plaintiff into executing a loan agreement

BROKERS knew, or should have known, that Plaintiff could not afford. Defendant SCME knew about these misrepresentations, yet approved the loan and assented to the benefits of the loan. Defendant SCME then assigned, sold, and/orfransferredits interest to Countrywide, which was subsequentiy acquired by BOFA. 31. SCME'sfraudulentactions and associated liability passed to Countrywide through the

assignment,fransfer,or sale of the Loan from SCME to Countrywide, and Defendant BOFA assumed the liability through its acquisition of Countrywide. 32. Plaintiff, in need of a more affordable mortgage payment, contacted Defendant BOFA on

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or around May of 2011 to explore the loan modification options provided by BOFA. 33. Since this time. Defendant BOFA has continually reassigned her loan modification case

from representative to representative. These representatives include, but are not limited to,

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"Charlotte," "Johnny" (ID #2807), "Valerie," "Lauren" (ID #8203), "Jackie" (ID # 2910), "Tara"

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(ID #8633), Linda Brown and Marlene Okolyta. Plaintiff is currently assigned to Ruben Luna, an authorized representative ofDefendant BOFA. 34. These reassigrmients occur regularly on a thirty (30) day basis. These reassignments of

Defendant BOFA representatives has been done with the intent to delay any proposed loan modification until Plaintiffhas no choice but to discontinue payments and fall behind on her mortgage payments. FIRST CAUSE OF ACTION Fraud (Against all Defendants) 35. Plaintiff incorporates all allegations of this complaint and re-alleges them as though they

were fully set forth herein.

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COMPLAINT

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36. 37.

Defendants conduct, as alleged above, constitutes fraud. Defendants knowingly and recklessly made false and misleading statements that Plaintiff"

relied on to her detriment and was damaged thereby. 38. Defendants BROKERS intentionally or recldessly misrepresented material facts.

Defendant CAL-LOAN, through its agents YAN and SALONDAKA, promised Plaintiff that it would act in her best interests and secure for her the best loan available. Defendants BROKERS further promised that Plaintiff could later refinance the loan. These promises were false and misleading. 39. Defendants BROKERS failed to disclose significant terms pertaining to the Loan.

Defendants concealed that Plaintiffs monthly Loan payments for the first ten (10) years would by interest only. Likewise, Defendants failed to disclose to Plaintiff the trae interest schedule or adjustment rate of the Loan, or the impact of these terms on the total cost of the Loan. 40. All of these representations and omissions made by Defendants BROKERS were false and

material, and these material representations and omissions were made with the knowledge of their falsity or with reckless disregard for the tmth. 41. Defendants intended for Plaintiff to rely on these material representations and omissions,

and Plaintiff did rely on these representations when she put her faith on the purported expertise of Defendants BROKERS and assented to the advice provided by Defendants BROKERS with 18 19 20 21 22 23 24 25 26 27 28 respect to the procurement of the Loan. 42. Plaintiff reasonably relied on said representations in signing the loan agreement and

making mortgage payments. 43. Defendant SCME encouraged and incentivized the fraud perpefrated by Defendants

BROBCERS. As such, SCME further perpetuated the fraud through its acceptance of the Loan application and ratification of the fraud committed by BROKERS. SCME'sfraudulentactions and associated liability passed to Countrywide through the assignment,fransfer,or sale of the Loan from SCME to Countrywide, and Defendant BOFA assumed the liability through its acquisition of Countrywide. 44. The conduct ofDefendant BOFA, as alleged above constitutes fraud. Defendant BOFA's

authorized representatives knowingly and recklessly made false and misleading statements 8
COMPLAINT

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regarding material facts including, but not limited to, BOFA's willingness to consider Plaintiff, in good faith, for a loan modification. 45. Defendant BOFA knew or should have known that refiising to consider Plaintiff for a

modification while she was current on their loan and then stonewalling Plaintiffs modification inquiries for several months could create an insurmountable deficiency which Plaintiff would be unable to pay on demand. 46. As a result ofPlaintiffs reliance, she is entitled to actual damages including, but not

limited to, loss ofraoneyand property including, but not limited to, losses through overcharges and unlawfully unfavorable loan terms, incurred attorneys' fees and costs to save his home, a loss of reputation and goodwill, destraction of credit, severe emotional disfress, loss of appetite,

21 fiiastration, fear, anger, helplessness";'mervousness, anxiety, sleeplessness, sadness, and depression, 22 ^2 according to proof at trial but within the jurisdiction of this Court. 47. Defendemts are guilty of malice,fraudand/or oppression, as defined in Califomia Civil

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Code 3294. Defendants' actions were malicious, willfijl, and in conscious disregard of the rights and safety of Plaintiff in that the actions were calculated to injure Plaintiff. As such. Plaintiff is entitled to recover, in addition to actual damages, punitive damages to punish Defendants and to deter them from engaging in fiiture misconduct.

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2g SECOND CAUSE OF ACTION Breach of Fiduciary Duty (Against Defendants CAL-LOANS, YAN, SALONDAKA and SCME) 48. Plaintiff incorporates all allegations of this complaint and re-alleges them as though they

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were fully set forth herein. 49. Defendants YAN, SALONDAKA and CAL-LOAN represented themselves as qualified

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mortgage brokers to Plaintiff and represented that they were acting in Plaintiffs best interests. Plaintiff hired Defendants YAN, SALONDAKA and CAL-LOAN as her real estate broker. As such, Defendants BROKERS acted on Plaintiffs behalf for the purpose of refinancing Plaintiffs Property. Thus, Defendant YAN, SALONDAKA, and CAL-LOAN were all agents for the Plaintiff by express and implied confract and by operation oflaw.
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COMPLAINT

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50.

Accordingly, Defendants YAN, SALONDAKA and CAL-LOAN each owed a fiduciary

duty tb the Plaintiff to act primarily for Plaintiffs benefit, to act with proper skill and diligence, and to refrain from making a personal profit at the expense of Plaintiff. 51. Likewise, as Plaintiffs agents. Defendants BROKERS owed Plaintiff a duty of loyalty

and a duty of fafr dealing at all times. 52. Defendants BROKERS sold Plaintiff a loan which consisted of the refinancing of a

consumer loan. Plaintiff, at the direction of said Defendants, entered into the agreement because BROKERS advised Plaintiff that they could get her the best deal and the best interest rates available on the market. 53. Defendants BROKERS knew, or should have known, that these assurances were false and

misleading. As a brokerage firm and as Plaintiffs agents. Defendants BROKERS had a duty to disclose all terms and conditions of the fransaction. However, BROKERS failed to disclose material terms affecting Plaintiffs interests. 54. Defendants BROKERS did not disclose that the Loan was interest only for the first ten

(10) years. Additionally, BROKERS did not disclose to Plaintiff the trae interest schedule or adjustment rate ofthe Loan, or the impact of these terras on the total cost of the Loan. Defendants BROKERS also failed to disclose the Yield Spread Premium they were paid for placing Plaintiff in a high-risk loan. 55. Defendants BROKERS owed afiduciaryduty to Plaintiff to warn Plaintiff of the

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propensities of the market in both the short and long term. Defendants BROKERS held specialized knowledge of the housing market. As brokers, they are familiar with the housing market, thus enabling them to proffer good, relevant advice. BROKERS knew, or should have known, that a market crash was imminent. As such, Defendants had a duty to wam Plaintiff that the housing market could "crash" at any moment, thus restricting Plaintiffs ability to refinance in the future. Nonetheless, Defendants promised Plaintiff that she could refinance the loan. 56. As Defendants BROKERS proffered advice that they knew, or should have known, was

not in Plaintiffs best interest, Defendants breached their fiduciary duty to Plaintiff. 57. Defendant SCME encouraged and incentivized Defendants BROKERS' breach of their

28 fiduciary duties. Specifically, Defendant SCME aided and abetted Defendants BROKERS' 10
COMPLAINT

1 breach offiduciaryduties because Defendant SCME knew, or should have known, that 2 Defendants BROKERS breached the fiduciary duties owed to Plaintiff. Defendant SCME could 3 have determined from loan documents provided for its review that the substantial terms were not ^ 5 disclosed to the borrower. 58. In addition to knowing that Defendants BROKERS' conduct constituted a breach of

6 fiduciary duties. Defendant SCME substantially assisted and/or encouraged Defendants 7 8 9 10 22 22 22 BROKERS' breaches because SCME finalized the entirefransaction,thereby ratifying BROKERS' conduct. 59. Plaintiffhas been damaged as a result of each Defendant's breaches, as indicated above.

Plaintiff is entitled to actual damages including, but not limited to, loss of money and property including but not limited to losses through overcharges and unlawfiilly unfavorable loan terms, incurred attomeys' fees and costs to save their home, a loss of reputation and goodwill, destraction of credit, severe emotional disfress, loss of appetite,fioisfration,fear, anger, helplessness, nervousness, anxiety, sleeplessness, sadness, and depression, according to proof at trial but within the jurisdiction of this Court. 60. Defendants consciously disregarded Plaintiffs rights, deliberately breaching the

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irrespective fiduciary duties, showing willful misconduct,raalice,fraud,wantoimess, oppression, and entire want of care, thus authorizing the imposition of punitive daraages pursuant to Califomia Civil Code 3294. THIRD CAUSE OF ACTION Negligence (Against Defendants CAL-LOANS, YAN, SALONDAKA and SCME) Plaintiff incorporates all allegations of this complaint and re-alleges them as though they

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61.

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were fully set forth herein. 62. As alleged above. Defendants BROKERS owed Plaintiff fiduciary duties to exercise

reasonable skill and care in performing their duties on behalf of Plaintiff. Defendants held themselves out as skilled brokers and were required to possess professional real estate licenses. 63. Defendants BROKERS breached their duties to Plaintiff when they used thefr knowledge

and skills to place Plaintiff in an unfavorable loan.

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COMPLAINT

1 64. 2 representing to Plaintiff that refinancing would be readily available in the fiiture, and by failing to" 3 warn Plaintiff of the potential risk that refinancing might not be available. 4 65. 5 breach offiduciaryduties, and by approving a loan that was originated in fraud. 6 7 8 9 66. As a result of Defendants' negligence, Plaintiffhas been damaged and is entitied to actual Defendant SCME acted negligentiy by promoting Defendants BROKERS'fraudand Defendants acted negligently by failing to disclose terms material to the Loan, by

damages including, but not liraited to, loss of money and property including but not limited to losses through overcharges and unlawfully unfavorable loan terms, incurred attomeys' fees and costs to save her home, a loss of reputation and goodwill, destmction of credit, severe eraotional disfress, loss of appetite, fiiisfration, fear, anger, helplessness, nervousness, anxiety, sleeplessness,

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sadness, and depression, according to proof at trial but within the jurisdiction of this Court. FOURTH CAUSE OF ACTION Unfair Competition Violation of Business and Professions Code Section 17200 et seq. (Against all Defendants) 67. Plaintiff incorporates all allegations of this complaint and re-alleges them as though they

were fiilly set forth herein. 68. Defendants' conduct, as alleged above, constitutes unlawfiil, unfair, and/or fraudulent

business practices, as defined in the Califomia Business and Professions Code lllOO et seq. As applied, Califomia Business and Professions Code 17200 et seq. borrows violations frora other statutes and laws. Plaintiffs Califomia Business and Professions Code 17200 allegations are tethered to Plaintiffs causes of action for Fraud, Breach of Fiduciary Duties, and Negligence" as

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alleged above.

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69. As a result of Defendants' wrongful conduct, Plaintiffhas suffered various damages and

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injuries according to proof at trial. 70. Plaintiff seeks injunctive relief enjoining Defendants frora engaging in the unfair business

practices described herein. 71. Plaintiff further seeks restitution, disgorgement of sums wrongfiilly obtained, costs of suit,

reasonable attorneys' fees, and such other and fiirther relief as the Court may deem just and proper. 12
COMPLAINT

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 79. 73. 72.

FIFTH CAUSE OF ACTION Negligent Misrepresentation (Against All Defendants) Plaintiff incorporates all allegations of this complaint and re-allege thera as though they

were fully set forth herein. As indicated above. Defendantsraadecertain representations to Plaintiff, and asserted

them to be tme. 74. 75. Such assertions were not tme. Defendants had no reasonable grounds for believing the representation to be trae when

they made it. 76. 77. Defendants intended that Plaintiff rely upon their representations. Plaintiffhas been daraaged as a result of each Defendants' misrepresentations, as

indicated herein. Plaintiff is entitled to actual daraages including, but not liraited to, loss of money and property including but not limited to loss of down payment, loss of loan payments, loss of equity, losses through overcharges, unfavorable loan terms, incurred attorneys' fees and costs to save their horae, a loss of reputation and goodwill, destmction of credit, severe emotional disfress, loss of appetite, fiiisfration, fear, anger, helplessness, nervousness, anxiety, sleeplessness, sadness, and depression, according to proof at trial but within the jurisdiction of this Court. 78. harm. SIXTH CAUSE OF ACTION Intentional Infliction of Emotional Distress (Against All Defendants) Plaintiff incorporates all allegations of this complaint and re-alleges thera as though they Plaintiffs reliance on Defendants' representations was a substantial factor in causing her

were fully set forth herein. 80. Defendants' conduct, as alleged herein, constitutes intentional infliction of emotional

distress.
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COMPLAINT

81.

Defendants' conduct was outrageous and purposeful. Defendants employed numerous

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misrepresentations in order to wrongfiilly induced Plaintiff into an unsustainable loan that

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ultimately will lead to the loss ofher home. 82. Defendants undertook these actions with the intention of causing PlaintifPs eraotional

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disfress, or a reckless disregard of the probability of causing Plaintiffs emotional distress.

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83. Defendants knew or should have known that misrepresenting to Plaintiff that they had

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been approved for a home loan with specific terms and then providing a loan with different and

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raore burdensorae terras which would eventually cause her to lose their horae would cause Plaintiff to suffer severe emotional disfress.

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84. Plaintiff did in fact suffer severe emotional disfress in the form of confusion, fiiisfration,

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fear, anguish, nervousness, helplessness, anxietj' and shock as a result of Defendants' abusive

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conduct. For these reasons. Defendants are guilty of malice,fraudand/or oppression, as defined

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in Califomia Civil Code 3294. Defendants' actions were malicious and willful, in conscious

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disregard of the rights and safety of Plaintiff, and calculated to injure Plaintiff. Accordingly,

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Plaintiff is entitled to recover punitive damages frora Defendants pursuant to Califomia Civil

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Code 3294, in an amount according to proof.

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23 24 25 26 4. For an order stating that Defendants engaged in unfair business practices; 27 5. For daraages, disgorgement, and injunctive relief; 28 14
COMPLAINT

DEMAND FOR JURY TRIAL AND PRAYER FOR DAMAGES WHEREFORE, Plaintiff MARSHA SCRIBNER demands a tiial by jury. Plaintiff prays for ajudgment and order against Defendants, as follows: 1. That judgment is entered in Plaintiffs favor and against Defendants, and each of them; 2. For an order requiring Defendants to show cause, if they have any, why they should not be enjoined as set forth below, during the pendency of the action; 3. For a temporary restraining order, preliminary and permanent injunction preventing Defendants, or anyone acting in concert with thera, from collecting on the subject loan and from causing the Property to be sold, assigned,fransferredto a third-party, or taken by anyone or any entity;

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6. For compensatory and statutory damages, attorneys' fees, and costs according to proof at trial; 7. For exemplary damages in an amount sufficient to punish Defendants' wrongful conduct and deter future misconduct; 8. For such other and fiirther relief as the Court may deem just and proper. DATED: Febraary 27, 2012 Respectfully submitted, LOUIS I WHITE

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JAMIL L. WHITE MICHAEL D. MALONEY Attomeys for Piaintil MARSHA SCRIBNER

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COMPLAINT