PEOPLE of The STATE of CA V US Bank National Association As Trustee-Several Trust - LA CA-1

1 CARMEN A.
TRUTANICH, City Attorney (SBN 86629) COPY

TINA HESS, Assistant City Attorney (SBN 143900)
2 SUZANNE V. SPILLANE, Supervising Deputy City Attorney (SBN 1644765 NTvoLosA GELEs
JANET KARKANEN, Deputy City Attorney (SBN 162173) JUl 1 6 2012
3 JULIA FIGUEIRA.-McDONOUGH, Deputy City Attorney (SBN 200452)
OFFICE OF THE LOS ANGELES CITY ATTORNEY
4 CRIMINAL BRANCH
1obnA. Clarke, Officer/Clerk
BY (/;,. ) 1.; ,t,,.,)Deputy
Cnstmidri[a va
200 North Main Street, 500 City Hall East
5 Los Angeles, California 90012-4131
Telephone (213) 978-7940/Facsimile (213) 978-8112
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7 Attorneys for Plaintiff, The People of the State of California
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SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF LOS ANGELES, CENTRAL DISTRICT
THE PEOPLE OF THE STATE OF
CALIFORNIA,
Plaintiff,
vs.
U.S. BANK NATIONAL ASSOCIATION,
a national banking association;
as trustee for Structured Asset Investment
Loan Trust, series unidentified, relating to
property located at 1562 West 226th Street,
Los Angeles, California 9050 I;
as trustee for Structured Asset Securities
Corporation Mortgage Pass-Through
Certificates, Series 2006-BC2;
as trustee for LXS 2005-05N;
as trustee for MASTR Asset Backed
Securities Trust 2006-WMC2;
as trustee for Harborview 2006-4;
as trustee for Doe I, Series 2006-HEI,
relating to property located at 1547 West 11th
Street, Los Angeles, California 90015;
as trustee for Structured Asset Investment
Loan Trust2006-BNC1;
) Case No. : 8 C 4 8 S 4 3 6
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COMPLAINT TO ABATE PUBLIC
NUISANCES, FOR INJUNCTIVE
AND OTHER EQUITTABLE
RELIEF AND FOR CIVIL
PENALTIES FOR VIOLATION OF:
1) THE CALIFORNIA UNFAIR
COMPETITION LAW (Business and
Professions Code section 17200 et seq.)
2) THE LOS ANGELES
MUNICIPAL CODE (Los Angeles
Municipal Code section 11.00,
subdivision (I))
[No Fee Required Pursuant to
Government Code Section 6103)
COMPLAINT
I
U.S. BANK NATIONAL ASSOCIATION, )
as trustee for Doe 2, relating to property )
2
located at 3573 West Florence Avenue, Los )
3
Angeles, California 90043; )
4
located at I 0972 South Hickory Street, Los )
5 Angeles, California 90059; )
6
as trustee for C-Bass Mortgage Loan Asset )
7
Backed Certificates, Series 2006-CB8; )
8
as trustee for LXS 2005-7N; )
9 as trustee for Doe 4, relating to property )
10
located at 9210 South Figueroa Street, Los )
11
as trustee for MASTR Asset Backed )
12
Securities Trust 2006-NC2; )
13 as trustee for Structured Asset Securities )
14
Corporation Mortgage Pass-Through )
Certificates, Series 2006-BC4; )
15
as trustee for Structured Asset Securities )
16
Certificates, Series 2006-EQI; )
17
as trustee for Bear Steams Asset Backed )
18
Securities I LLC, Series 2005-AC9; )
19
20
Securities Trust 2006-NC3; )
21
as trustee for CSAB Mortgage Backed Pass- )
22
Through Certificates, Series 2006-2; )
23
Securities Trust 2007-HE!; )
24
as trustee for Citigroup Mortgage Loan Trust )
25
Inc., Mortgage Pass-Through Certificates, )
26
Series 2007-AR2; )
27
as trustee for Harborview 2006-4 Trust Fund; )
28 as trustee for JP AL T 2006-5; )
COMPLAINT
1
as trustee for JPMMAC 2005-FLD1; )
2
3
as trustee for Structured Asset Investment )
Loan Trust, 2006-BNC3; )
4
5 Corporation Trust 2005-WF3; )
6
as trustee for First Franklin Mortgage Loan )
7
Trust 2006-FF12; )
8
as trustee for SG Mortgage Securities Asset )
Backed Certificates, Series 2006-FRE2; )
9 U.S. BANK NATIONAL ASSOCIATION, )
10
Loan Trust, 2006-BNC2; )
11
12
Corporation Structured Asset Investment )
Loan Trust Mortgage Pass-Through )
13 Certificates, Series 2005-HE1; )
14
15
located at 10334 South JUniper Street, Los )
16
17
Securities Trust 2006-HE5; )
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as trustee for Structured Asset Mortgage )
19
Investments II Inc., Bear Stearns ALT-A )
Trust Mortgage Pass-Through Certificates, )
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Series 2006-3P; )
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as trustee for Bear Stearns Asset Backed )
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Securities I Trust 2006-IM1; )
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as trustee for Lehman Brothers Structured )
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Asset Investment Loan Trust SAIL 2006- )
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BNC2; )
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as trustee for BNC Mortgage Loan Trust )
2006-2; )
28 )
COMPLAINT
1
2
located at 3606 South Trinity Street, Los )
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4
as trustee for Citigroup Mortgage Loan Trust, )
Asset Backed Pass-Through Certificates, )
5 Series 2006-AMCI; )
6
7
Loan Trust 2005-8; )
U.S BANK NATIONAL ASSOCIATION, )
8
as trustee for Lehman Brothers Securitization )
Name- Structured Asset Investment Loan )
9 Trust, series unidentified; )
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11
Inc., Asset Backed Pass-Through Certificates, )
Series 2007-AHL2; )
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13 Loan Trust, 2005-9; )
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15
Loan Trust, 2006-2; )
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as trustee for CSAB Mortgage Backed Pass- )
Through Certificates, Series 2006-3; )
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Loan Trust, 2005-HE3; )
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Trust 2006-FF2; )
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22
Asset Investment Loan Trust SAIL 2006-3; )
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as trustee for Asset Backed Securities )
Corporation Home Equity Loan Trust, Series )
24
AMQ 2006-HE7; )
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2007-AMC2; )
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as trustee for JPMAC 2006-H3; )
)
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COMPLAINT
1
as trustee for Citi Mortgage Loan Trust Inc., )
2
for Asset Backed Pass-Through Certificates, )
3
Series 2006-WMCl; )
4
Asset Investment Loan Trust SAIL 2005-6; )
6
Asset Securities Corporation SASCO 2006- )
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BC6; )
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as trustee for CMLIT 2007-AR8; )
9 as trustee for JP Morgan Alternative Loan )
10
Trust 2006-A6; )
11
as trustee for Asset Backed Pass-Through )
Certificates, Series RFC 2007-HEl; )
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as trustee for JP Morgan Acquisition )
13 Corporation 2005-FRE 1; )
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as trustee for LXS 2007-4N Trust Fund; )
15
as trustee for Specialty Underwriting and )
16
Residential Finance Trust Mortgage Loan )
Asset Backed Certificates, Series 2007-BCl; )
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18
Asset Securities Corporation SASCO 2007- )
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BNCl; )
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Corporation Trust 2007-EQl; )
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as trustee for MASTR Adjustable Rate )
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Mortgages Trust 2007-2; )
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Mortgages Trust 2007-HF2; )
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Corporation Trust 2007-GEL2; )
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COMPLAINT
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2
Securities Trust 2006-HE4; )
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Certificates, Series 2006-BC5; )
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as trustee for Adjustable Rate Mortgage Trust )
2007-1; )
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as trustee for Adjustable Rate Mortgage Trust )
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2007-3; )
9 as trustee for Asset Backed Securities )
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Corporation Horne Equity Loan Trust, Series )
MO 2006-HE6; )
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12
Inc., Asset Backed Pass-Through Certificates, )
Series 2007-AMC4; )
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as trustee for Bane [sic] of America Funding )
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Certificates, Series 2006-H; )
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as trustee for Bear Stearns ARM Trust, )
Mortgage Pass-Through Certificates, Series )
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2005-1; )
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as trustee for Asset Backed Pass-Through )
Certificates, Series 2006-WFHE3; )
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as trustee for Terwin Mortgage Trust 2006-3; )
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Securities Trust 2007-WMC 1; )
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27
U.S. BANK NATIONAL ASSOCITION, )
28 as trustee for RAMP 2006-NC2; )
COMPLAINT
1
2
Trust 2006-FF14; )
3
4
Securities Trust 2006-WMC3; )
5 as trustee for W AMU Mortgage Pass- )
6
Through Certificates for WMALT 2007- )
OA2; )
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8
Corporation Structured Asset mvestrnent )
Loan Trust Mortgage Pass-Through )
9 Certificates, Series 2005-11; )
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as trustee for CSFB ARMT 2006-3; )
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as trustee for W AMU Mortgage Pass- )
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Through Certificates for WMALT 2007- )
OA3; )
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located at 514 West 59th Street, Los Angeles, )
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California 90044; )
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as trustee for BAFC 2007-A; )
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as trustee for W AMU Mortgage Pass- )
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. Through Certificates for WMAL T 2006- )
AR4; )
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as trustee for LXS 2006-1 ON Trust Fund; )
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as trustee for Bear Stearns ARM Trust )
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Mortgage Pass-Through Certificates, Series )
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2005-6; )
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as trustee for SARM 2005-3; )
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as trustee for CMLTI Asset Backed Pass- )
Through Certificates, Series 2007-AMC3; )
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as trustee for Lehman XS Trust Mortgage )
Pass-Through Certificates, Series 2005-9N; )
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28 Backed Certificates 2007 -CB3; )
COMPLAINT
1
as trustee for GSAA Home Equity Trust )
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2007-1; )
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as trustee for LXS 2007 -7N; )
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as trustee for Home Equity Asset Trust 2005- )
5 9;
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Trust, Mortgage Loan Asset Backed )
Certificates, Series 2007-1; )
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as trustee for Terwin Mortgage Trust 2006-7; )
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as trustee for Harborview 2006-1 Trust Fund; )
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Mortgages Trust 2007-3; )
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as trustee for MLMI Trust, Series 2006-RM2; )
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2006-WFHE4; )
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as trustee for Asset Backed Funding )
Corporation Asset Backed Certificates, Series )
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2007-WMCl; )
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as trustee for SARM 2005-23; )
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as trustee for C-Bass Mortgage Loan )
24 Certificates 2006-CB5; )
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as trustee for Mortgage Pass-Through )
26
Certificates, Series )
27
located at 327 Yz West 70th Street, Los )
28 Angeles, California 90003; )
COMPLAINT
1
as trustee for Merill Lynch Mortgage )
2
Investors Trust, Series 2010-NP1; )
3
as trustee for JP Morgan Mortgage )
4
Acquisition Trust 2006-NC1; )
5 as trustee for MARM 2007-3; )
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as trustee for Credit Suisse First Boston )
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CSFB 2005-2; )
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as trustee for Servertis Fund I Trust 2009-2 )
Certificates, Series 2009-2; )
as trustee for MASTR Alternative Loan Trust )
10
2003-7; )
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as trustee for Washington Mutual Mortgage )
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Pass-Through Certificates WMALT, Series )
2006-AR9; )
as trustee for Harborview 2005-16 Trust )
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Fund;
)
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as trustee for BNC Mortgage Loan Trust )
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2007-1, Mortgage Pass-Through Certificates, )
Series 2007-1; )
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as trustee for Bane [sic] of America Funding )
19
Certificates, Series 2007-D; )
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as trustee for Bear Steams Asset Backed )
Securities, 2006-AC 1; )
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22
ARMT 2005-5; )
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24
Inc., unidentified series; )
25
as trustee for Citigroup Mortgage Trust Inc. )
26
Asset Backed Pass-Through Certificates, )
Series 2007-AMC1; )
27
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COMPLAINT
1
2
Mortgage Securities Corp. Home Equity )
3
Pass-Through Certificates, Series 2006-8; )
4
Backed Certificates 2007 -CB 1; )
6
as trustee for CBASS 2006-SC1; )
7
as trustee for CSFB Home Equity Pass- )
Through Certificates, Series 2005-FIX1; )
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as trustee for Specialty UnderWriting and )
9 Residential Finance Trust, Mortgage Loan )
10
Asset Backed Certificates, Series 2006-BC4; )
11
Mortgages Trust, Series 2007-1; )
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as trustee for BancCap Asset Securitization )
13 Issuance Corporation, Mortgage Loan Asset )
14
Backed Certificates, Series 2006-1; )
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as trustee for Citigroup Mortgage Loan Trust, )
2005-HE3; )
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as trustee for WMALT 2007-0A5; )
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located at 5753 Yz South 8th Avenue, Los )
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as trustee for WaMu Mortgage Pass-Through )
Certificates, Series 2007-HY5; )
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as trustee for RAMP 2006-EFC2; )
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as trustee for SAIL 2005-5; )
and )
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DOES 1 through 2500, )
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Defendants. )
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COMPLAINT
1
2
TABLE OF CONTENTS
3 NATURE OF THE ACTION ................................................................................................... 1
4 THEPARTIES .......................................................................................................................... 3
5
6
7
A.
B.
c.
Plaintiff ................................................................................................................ 3
Defendant ............................................................................................................. 3
Doe Defendants .................................................................................................... 21
8 LEGAL DUTIES AND RESPONSIBILITIES OF RESIDENTIAL
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PROPERTY OWNERS ............................................................................................................ 21
A.
B.
c.
D.
Legal Duties and Responsibilities Relating to Vacant Properties ..................... 22
1.
2.
3.
4.
California Public Nuisance Law ............................................................. 22
California Vacant Foreclosed Property Maintenance Law ................... 23
The Los Angeles Vacant Building Ordinance ........................................ 23
The Los Angeles Foreclosure Registry Ordinance ................................. 25
Legal Duties and Responsibilities Relating to Occupied Properties .................. 26
1.
2.
3.
4.
The California Health and Safety Code ................................................. 26
Statutory Warranty of Habitability ......................................................... 27
Common Law Warranty of Habitability ................................................. 29
The Covenant of Quiet Enjoyment .......................................................... 29
Tenant Protections ............................................................................................... 30
1.
2.
3.
4.
Section 8 of the United States Housing Act ............................................ 30
The Protecting Tenants at Foreclosure Act ........................................... 31
The Los Angeles Rent Stabilization Ordinance ...................................... 31
The Los Angeles Foreclosure Eviction Ordinance ................................ 32
Other Municipal Laws ......................................................................................... 33
1.
2.
3.
LAMC Zoning Code ................................................................................ 33
LAMC Building Code .............................................................................. 33
LAMC Electrical Code ............................................................................ 37
COMPLAINT
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5 E.
4.
5.
TABLE OF CONTENTS (cont'd.)
Pages
LAMC Plumbing Code ........................................................................... 37
Mechanical Code ..................................................................................... 38
County Property Tax Laws .................................................................................. 38
6 DEFENDANT'S LIABILITY .................................................................................................... 39
7
8
9
10
11
12
A.
B.
c.
D.
DEFENDANT's Unlawful and Unfair Business Practices ............................... 39
DEFENDANT's Unlawful Practices ................................................................... 39
DEFENDANT US Bank National Association's Unfair
and Deceptive Practices to Vacate Properties ..................................................... 66
DEFENDANT U.S. BANK's Individual Liability .............................................. 69
FIRST CAUSE OF ACTION .................................................................................................... 72
U niawful Business Acts and Practices in Violation of
13 California Business and Professions Code sections 17200 et seq.
14
(Against DEFENDANT in Its Individual and Representative Capacities)
15
16
17
18
A.
B.
The California Unfair Competition Law ............................................................ 72
1.
2.
Generally .................................................................................................. 72
"Unlawful" Business Acts and Practices ................................................ 74
DEFENDANT's Violations of the UCL ............................................................. 74
19
SECOND CAUSE OF ACTION ............................................................................................... 76
20
Unfair and Fraudulent Business Acts and Practices Under the
California Business and Professions Code sections 17200 et seq.
21 (Against Defendant in Its Representative Capacity Only)
22
23
A.
B.
"Unfair" and "Fraudulent" Business Acts and Practices ................................. 77
DEFENDANT's Violations of the UCL ............................................................. 78
24 THIRD CAUSE OF ACTION ................................................................................................... 80
25 Violations of Los Angeles Municipal Code section 11.00, subdivision (I)
(Against Defendants in Its Individual and Representative Capacities)
26
27
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PRAYER FOR RELIEF ............................................................................................................ 83
ii
COMPLAINT
1 PLAINTIFF, the People of the State of California ("PEOPLE"), complaining of the above-
2 named DEFENDANT (DEFENDANT, U.S. Bank National Association, individually and as trustee
3 for these various trusts shall collectively be referred to as "DEFENDANT"), allege as follows:
4
5 1.
NATURE OF THE ACTION
This case concerns DEFENDANT U.S. Bank National Association, a national bank
6 that has become one of the largest slumlords in the City of Los Angeles ("City"). Since at least July
7 2008, DEFENDANT has become the owner of thousands of residential properties in the City,
8 through foreclosure of mortgages held in mortgage-backed securities trusts, which it has completely
9 failed to maintain in violation of municipal, state, and federal law. As a result, hundreds of
10 properties have fallen into disrepair, causing blight and destabilizing communities.
11 2. DEFENDANT U.S. Bank National Association, based in Minneapolis, Minnesota, is
12 the 5th largest commercial bank in the United States, with 3,000 branches in 25 states, 60,000
13 employees and assets totaling over $340 billion. DEFENDANT U.S. Bank National Association
14 acts as trustee for trusts composed of mortgage-backed securities and in this capacity holds title to
15 thousands of properties across the country.
16 3. DEFENDANT U.S. Bank National Association was, and continues to be, heavily
17 involved with mortgage backed securities. In some cases, it acquired large volumes of residential
18 mortgage loans from smaller banks and bundled them into securities, shares of which were then sold
19 to investors who received a portion of the monthly cash payments. In other cases, DEFENDANT
20 was and continues to be compensated for serving as trustee for the trusts.
21 4. Many of these trusts were comprised of sub-prime mortgages, made to individuals
22 who did not meet traditional underwriting guidelines. These individuals were under-qualified, with
23 insufficient capital and/or income to support the mortgages. Nonetheless, while the demand for
24 mortgage-backed securities grew, banks continued to issue sub-prime loans allowing borrowers to
25 refinance their original mortgages to avoid foreclosures.
26 5. Compensation for serving as trustee of mortgage-backed securities provided a
27 dependable, low-maintenance source of income for DEFENDANT U.S. Bank National Association.
28
I
COMPLAINT
1 By late 2006, interest rates began to rise, housing prices began to drop, and refinancing became more
2 difficult Consequently, the number of mortgages in default rose sharply, culminating in the
3 financial crisis of2007-2008. When mortgages held in the mortgage-backed securities trusts were
4 foreclosed upon, trustees such as DEFENDANT U.S. Bank National Association acquired title to the
5 foreclosed properties. As a result, DEFENDANT U.S. Bank National Association became large
6 scale residential property owner, a role whose responsibilities it eschews to this day.
7 6. In the past four years, DEFENDANT U.S. Bank National Association has, as trustee
8 for various mortgage-backed securities trusts, taken title to more than 1500 residential properties in
9 the City of Los Angeles (the "Foreclosed Properties").
10 7. Upon taking title to these properties, DEFENDANT U.S. Bank National Association
11 disregarded virtually every one of its legal duties and responsibilities as owner, resulting in the
12 creation and maintenance of an alarming number of vacant nuisance properties and substandard
13 occupied housing units. DEFENDANT U.S. Bank National Association has engaged in this
14 business practice since at least July 2008.
15 8. DEFENDANT U.S. Bank National Association has been repeatedly advised over the
16 course of several years of its failure to fulfill its legal duties as property owner in the City and other
17 jurisdictions. Despite this, DEFENDANT U.S. Bank National Association has made no efforts to
18 remedy the problems or reform its conduct in order to comply with the law, choosing instead to
19 continue its unlawful business practices.
20 9. This is a civil law enforcement action brought by the Los Angeles City Attorney's
21 Office on behalf of the PEOPLE to put an end to DEFENDANT U.S. Bank National Association's
22 unlawful, unfair and fraudulent business acts and practices relating to its neglect of hundreds of
23 residential properties within the City. Such unlawful, unfair and fraudulent business acts and
24 practices by DEFENDANT U.S. Bank National Association has resulted in the creation and
25 maintenance of hundreds of substandard, uninhabitable occupied and vacant nuisance properties;
26 public nuisances; and the unlawful eviction of hundreds of tenants throughout the City.
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2
COMPLAINT
1 10. In this action, PLAINTIFF asserts its power to remedy this injury to the public under
2 the California Unfair Competition Law (Bus. & Prof. Code, 17200 et seq.) and the Los Angeles
3 Municipal Code ("LAMC") by seeking to enjoin DEFENDANT U.S. Bank National Association's
4 ongoing and future violations oflaw, to obtain restitution for the victims of DEFENDANT U.S.
5 Bank National Association's conduct, and to assess civil penalties against DEFENDANT U.S. Bank
6 National Association to deter it and others from engaging in such conduct now and in the future.
7
8 A.
9
THE PARTIES
Plaintiff
11. PLAINTIFF PEOPLE is the sovereign power of the State of California designated by
10 the California Unfair Competition Law and California public nuisance laws to be the complaining
11 party in civil law enforcement actions brought under those statutes. PLAINTIFF has an interest in
12 ensuring that individuals and entities doing business in this state comply with all governing laws.
13 The PEOPLE act here through Carmen A. Trutanich, City Attorney for the City of Los Angeles,
14 under the authority granted to him by Business and Professions Code sections 17203, 17204 and
15 17206.
Defendant 16 B.
17 12. DEFENDANT U.S. Bank National Association is, and at all times relevant hereto
18 was, a national banking association organized and existing under the laws of the United States and
19 doing business throughout the State of California, including the City.
20 13. DEFENDANT U.S. Bank National Association is also named in its capacity as
21 trustee of each and every trust identified below that holds or held title to each corresponding
22 property identified below located within the City:
23
TRUST PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
24 ~ - - - - - - - - - - - - - - - - - - - - _ , - - - - - - - - - - - - - - - - - - - - - - + - - - - - - - - - - - - - ~
25
26
27
28
Structured Asset Investment Loan Trust
(series unidentified)
1562 West 226th Street,
Los Angeles, California 90501
("1562 West 226th Street'')
7347011013
~ - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - ~
3
COMPLAINT
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TRUST
Structured Asset Securities Corporation
Mortgage Pass-Through Certificates, Series
2006-BC2
LXS 2005-05N
MASTR Asset Backed Securities Trust 2006-
WMC2
Harborview 2006-4
Doe I, Series 2006-HEI
Structured Asset Investment Loan Trust,
2006-BNCI
Doe2
Doe 3
C-BASS Mortgage Loan Asset Backed
Certificates, Series 2006-CB8
LXS 2005-7N
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
925 North Virgil Avenue,
Los Angeles, California 90029 5539C08003
("925 North Virgil Avenue")
643 North Rossmore Avenue,
5523007003
("643 North Rossmore Avenue")
I 008 East 4 I st Place,
Los Angeles, California 90011 5115022011
("I 008 East 41st Place")
1341 West 51st Place,
(" 1341 West 51st Place")
1547 West lith Street,
("1547 West lith Street")
148 East 79th Street,
("148 East 79th Street")
3573 West Florence Avenue,
("3573 West Florence Avenue")
I 0972 South Hickory Street,
("I 0972 South Hickory Street")
237 East I 03rd Street,
("237 East 103rd Street")
4502 West Olympic Boulevard,
("4502 West Olympic Boulevard")
4
COMPLAINT
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TRUST
Doe4
NC2
2006-BC4
Mortgage Pass-Through Certificates, 2006-
EQI
Bear Steams Asset Backed Securities I LLC,
Asset Backed Securities, Series 2005-AC9
MASTR Asset-Backed Securities Trust 2006-
NC3
CSAB Mortgage Backed Pass-Through
Certificates, 2006-2
HE!
Citigroup Mortgage Loan Trust, Inc.,
Mortgage Pass-Through Certificates, Series .
2007-ARZ
Harborview 2006-4 Trust Fund
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
9210 South Figueroa Street,
("921 0 South Figueroa Street")
5709 Hooper Avenue,
Los Angeles, California 900 II 5104026001
("5709 Hooper Avenue")
9308 South Main Street,
("9308 South Main Street")
12745 North De Santis Avenue,
("12745 North DeSantis Avenue")
7002 Hazeltine Avenue,
("7002 Hazeltine Avenue")
-
15430 West Parthenia Street,
("15430 West Parthenia Street")
("223 West 90th Street")
1408 South Burlington Avenue,
(" 1408 South Burlington A venue")
5955 North Corbin Avenue,
("5955 North Corbin Avenue")
602 North Wilton Place,
("602 North Wilton Place")
5
COMPLAINT
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2 0
2 1
2 2
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2 5
2 6
2 7
2 8
TRUST
JPALT 2006-5
JPMorgan Investment Bank, JPMMAC 2005-
FLDl
2006-BNC3
Structures Asset Securities Corporation Trust
2005-WF3
First Franklin Mortgage Loan Trust 2006-
FF12
SG Mortgage Securities Asset Backed
Certificates, Series 2006-FRE2
Structured Investment Loan Trust 2006-
BNC2
2005-HEl
DoeS
HE5
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
12806 West Oxnard Street,
("12806 West Oxnard Street")
Los Angeles, California 9003 7 5018027005
19525 West Bassett Street,
(" 19525 West Bassett Street")
716 South Bonnie Brae,
("716 South Bonnie Brae")
1653 South 5th Avenue,
("1653 South 5th Avenue")
14646 Erwin Street,
Van Nuys, California 91411 2241014010
(" 14646 Erwin Street")
10334 South Juniper Street,
("10334 South Juniper Street")
2606 North Vallejo Street,
("2606 North Vallejo Street")
6
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
TRUST
Mortgage Pass-Through Certificates 2006-
EQI
Structured Assets Mortgage Investments II
Inc., Bear Stearns ALT-A Trust Mortgage
Pass Through Certificates, Series 2006-3P
Bear Stearns Asset Backed Securities I Trust
2006-IMI
C-Bass Mortgage Loan Asset Backed
Lehman Brothers Structured Asset
Investment Loan Trust SAIL 2006-BNC2
BNC Mortgage Loan Trust 2006-2
Doe6
Citigroup Mortgage Loan Trust, Asset
Backed Pass-Through Certificates, Series
2006-AMCI
2005-8
Lehman Brothers Securitization Name-
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
221 South Reno Street,
(''221 South Reno Street")
401 East 83rd Street,
1422 South Carmona Avenue,
("1422 South Carmona Avenue")
2834 West Martin Luther King Jr.
Boulevard,
5023003011
("2834 West MLK Boulevard")
8047 North Louise Avenue,
("8027 North Louise Avenue")
10424 Lou Dillon Avenue,
("10424 Lou Dillon Avenue")
3606 South Trinity Street,
("3606 South Trinity Street")
5700 South 3rd Avenue,
("5700 South 3rd Avenue")
3915 Walton Avenue,
("3915 Walton Avenue")
7819 South Hoover Street,
("7819 South Hoover Street")
7
COMPLAINT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
1 5
1 6
1 7
1 8
1 9
2 0
2 1
2 2
2 3
2 4
2 5
2 6
2 7
2 8
TRUST
Citigroup Mortgage Loan Trust Inc., Asset
Backed Pass Through Certificates, Series
2007-AHL2
Structured Asset Investment Loans Trust
2005-9
HE!
Structured Investment Loan Trust, 2006-2
CSAB Mortgage Backed Pass-Through
Certificates, Series 2006-3
MASTR Asset Backed Security Trust 2006-
HE5
2005-HE3
WMC2
2006-BNC2
First Franklin Financial Loan Trust, Mortgage
Pass-Through Certificates, Series 2006cFF2
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
236 South Columbia Avenue,
("236 South Columbia Avenue")
901 West 81st Street,
("901 West 81st Streef')
4313 South Crocker Street,
("43 13 South Crocker Street")
6300 East Monterey Road,
Los Angeles, California 90042 53!2028025
("6300 East Monterey Road")
Los Angeles, California 9000 I 6029016008
8116 North Laramie Avenue,
("8116 North Laramie Avenue")
6061 4th Avenue,
("6061 4th Avenue")
8312 South San Pedro Street,
("8312 South San Pedro Street")
13521 North Norris Avenue,
("13521 North Norris Avenue")
8
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
TRUST
Investment Loan Trust SAIL 2006-3
Asset Backed Securities Corporation Home
Equity Loan Trust, Series AMQ 2006-HE7
Citigroup Mortgage Loan Trust 2007-AMC2
JPMAC 2006-H3
Citi Mortgage Loan Trust Inc. for Asset
Backed Pass-Through Certificates, Series
2006-WMC1
Investment Loan Trust SAIL 2005-6
Lehman Brothers Structured Asset Securities
Corporation SASCO 2006-BC6
JP Morgan Alternative Loan Trust 2006-A6
CMLIT 2007-AR8
Asset Backed Pass-Through Certificates,
Series RFC 2007-HEI
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
419 West 103rd Street,
("419 West 103rd Street")
219 North Grand Avenue,
("219 North Grand Avenue")
("83 5 East I 09th Street")
145 South Dacotah Street,
(" 14 5 South Dacotah Street")
1917 West 73rd Street,
("1917 West 73rd Street")
18309 West Keswick Street,
("18309 West Keswick Street")
8953 Cayuga Avenue,
("8953 Cayuga Avenue")
13240 West Aztec Street,
("13240 West Aztec Street")
9
COMPLAINT
1
2
3
4
5
6
7
8
9
10
1
1
1
1
1
1
1
1
1
2
2
1
2
3
4
5
6
7
8
9
0
1
2 2
2 3
2 4
2 5
2 6
2 7
2 8
TRUST
JPMorgan Acquisition Corporation 2005-
FREI
LXS 2007-4N Trust Fund
Specialty Underwriting and Residential
Finance Trust Mortgage Loan Asset Backed
Certificates, Series 2007-BCI
Lehman Brothers Structured Asset Securities
Corporation SASCO 2007-BNCI
Structured Asset Securities Corporation Trust
2007-EQI
MASTR Adjustable Rate Mortgages Trust
2007-2
2007-HF2
Structured Asset Securities Corporation Trust
2007-GEL2
MASTR Asset Backed Securities, Trust
2006-HE4
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
3503 South Cimarron Street,
{"3503 South Cimarron Street")
2129 Scott Avenue,
("2129 Scott Avenue")
10526 Lou Dillon A venue,
("10526 Lou Dillon Avenue")
2860 South Holt Avenue,
("2860 South Holt Avenue")
2518 East Chelsea Street,
("2518 East Chelsea Street")
312 West Gage Avenue,
("312 West Gage Avenue")
5152 North Lindley Avenue,
("5152 North Lindley Avenue")
4915 South 2nd Avenue,
("4915 South 2nd Avenue")
1651 West Gage A venue,
("1651 West Gage Avenue")
10
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
TRUST
Mortgage Pass-Tirrough Certificates, Series
2006-BC5
Adjustable Rate Mortgage Trust 2007-1
Adjustable Rate Mortgage Trust 2007-3
Equity Loan Trust, Series MO 2006-HE6
Citigroup Mortgage Loan Trust Inc, Asset
Backed Pass Tirrough Certificates, Series
2007-AMC4
Bane [sic] of America Funding Corporation
2006-H
Bear Stearns ARM Trust, Mortgage Pass-
Tirrough Certificates, Series 2005-1
2006-BC4
2006-3
Asset Backed Pass-Tirrough Certificates,
Series 2006-WFHE3
ASSESOR'S PARCEL
PROPERTY ADDRESS
NUMBER
12739 North Bradley Avenue,
("12739 North Bradley Avenue")
715 South Saint Louis Street,
("715 South Saint Louis Street")
3029 North Eva Terrace,
("3029 North Eva Terrace")
9200 North Haddon Avenue,
("9200 North Haddon Avenue")
2803 South Victoria Avenue,
("2803 South Victoria Avenue")
6118 West Horner Street,
("6118 West Horner Street")
527 South Bernal Avenue,
("527 South Bernal Avenue")
8822 Reading A venue,
("8822 Reading Avenue")
11
COMPLAINT
1
2
3
4
5
6
7
8
9
10
1 1
12
1 3
1 4
1 5
1 6
1 7
1 8
1 9
2 0
2 1
2 2
2 3
2 4
2 5
2 6
2 7
2 8
TRUST
Terwin Mortgage Trust 2006-3, Asset Backed
2006-1
Citigroup Mortgage Loan Trust Inc., Asset
Backed Pass-Tirrough Certificates, Series
2007-AMC4
WMC1
2005-3
RAMP 2006-NC2
JP Morgan Acquisition Corporation 2005-
FREI
First Franklin Mortgage Loan Trust 2006-
FF14
MASTR Asset Securities Trust 2006-WMC3
W AMU Mortgage Pass-Tirrough Certificates
fur WMALT 2007-0A2
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
4507 West Rosewood Avenue,
("4507 West Rosewood Avenue")
6742 North Beck Avenue,
("6742 North Beck Avenue")
84 7 West 41st Drive,
("84 7 West 41st Drive")
11505 North Fellows Avenue,
("11505 North Fellows Avenue")
1512 East I 06th Street,
1261 North Island Avenue,
("1261 North Island Avenue")
20552 West Acre Street,
("20552 West Acre Street")
2008 East Hollenbeck Drive,
("2008 East Hollenbeck Drive")
737 North Heliotrope Drive,
("737 North Heliotrope Drive")
12
COMPLAINT
1
2
3
4
5
6
7
8
9
10
1 1
12
1
1
1
1
1
1
1
2
2
2
2
3
4
5
6
7
8
9
0
1
2
3
2 4
2 5
2 6
2 7
2 8
TRUST
BNC Mortgage Loao Trust 2006-2
WMCI
Structured Asset Investment Loao Trust
2005-11
Structured Asset Investment Loao Trust
2006-2
Structured Asset Investment Loao Trust,
2006-3
CSFB ARMT 2006-3
Structured Asset Investment Loao Trust,
2006-3
W AMU Mortgage Pass-Through Certificates
for WMALT 2007-0A3
Citigroup Mortgage Loao Trust Inc.,
Mortgage Pass-Through Series 2007-ARZ
Doe?
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
525 West !lith Street,
Los Angeles, California 90044 60750220!8
("525 West !lith Street")
3152 East Folsom Street,
("3152 East Folsom Street")
8755 North Matilija Avenue,
("8755 North Matilija Avenue")
8144 North Lorna Verde Avenue,
("8144 North Lorna Verde Avenue")
5910 East Echo Street,
("5910 East Echo Street")
8923 South Menlo A venue,
("8923 South Menlo A venue")
9809 West Melinda Drive,
("9809 West Melinda Drive")
13
COMPLAINT
1
2
3
4
5
6
7
8
9
10
1 1
12
1
1
1
1
1
1
1
3
4
5
6
7
8
9
2 0
2 1
2 2
2 3
2 4
2 5
2 6
2 7
2 8
TRUST
HE4
BAFC2007-A
W AMU Mortgage Pass-Through Certificates
for WMALT 2006-AR4
HE4
LXS 2006-1 ON Trust Fund
Bear Stearns ARM Trust Mortgage Pass-
Through Certificates, Series 2005-2006
SARM2005-3
CML TI Asset Backed Pass-Through
Certificates, Series 2007-AMC3
Lehman XS Trust Mortgage Pass-Through
Certificates, Series 2005-9N
HE4
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
1768 South Hayworth Avenue,
("1768 South Hayworth Avenue")
514 West 62nd Street,
("514 West 62nd Street")
7235 North Katherine Avenue,
("7235 North Katherine Avenue")
3732 South Ruthelen Street,
("3732 South Ruthelen Street")
17000 West Cantara Street,
("17000 West Cantara Street")
14
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
TRUST
Certificates 2007-CB3
GSAA Home Equity Trust 2007-1
LXS 2007-7N
Home Equity Asset Trust 2005-9
LSX 2006-2N Trust Fund
First Franklin Mortgage Loan Trust,
Mortgage Loan Asset Backed Certificates,
Series 2007 -I
Terwiu Mortgage Trust 2006-7, Asset Backed
Certificates
2007-3
Equity Loan Trust, Series MO 2006-HE6
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
9120 South Vennont A venue,
("9120 South V ennont A venue")
4621 West Pickford Street,
("4621 West Pickford Street")
13147 North Gladstone Avenue,
("13147 North Gladstone Avenue")
3990 South Nonnandie Avenue,
("3990 South Nonnandie Avenue")
1254 West 40th Place,
(" 1254 West 40th Place")
1126 South Lake Street,
("1126 South Lake Street")
I 027 North Mark Street,
("1027 North Mark Street'')
3971 North Murietta Avenue,
("3971 North Murietta Avenue")
15
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
TRUST
MLMI Trust Series 2006-RM2
Citigroup Mortgage Loan Trust 2006-
WFHE4
Asset Backed Funding Corporation Asset
Backed Certificates, Series 2007-WMCI
2006-BC4
LXS2007-2N
LXS 2006-12N
SARM 2005-23
C-Bass Mortgage Loan Certificates 2006-
CB5
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
786 East 41st Street,
("786 East 41st Street")
909 South Fedora Street,
("909 South Fedora Street")
1234 South Manhattan Place,
("1234 South Manhattan Place")
2132 West Fargo Street,
("2132 West Fargo Street")
2253 South Bronson Avenue,
("2253 South Bronson Avenue")
1720 South Union Avenue,
("1720 South Union Avenue")
1385 West 22nd Street,
("1385 West 22nd Street")
5243 Blackwelder Street,
("5243 Blackwelder Street")
16
COMPLAINT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
1 5
1 6
1 7
1 8
1 9
2 0
2 1
2 2
2 3
2 4
2 5
2 6
2 7
2 8
TRUST
Bear Stearns Asset Backed Securities I Trust
2006-IM1
2006-ARJ
Doe 8
Merrill Lynch Mortgage Investors Trust,
Series 2010-NP1
JP Morgao Mortgage Acquisition Trust 2006-
NC1
MARM2007-3
Credit Suisse First Boston CSFB 2005-2
Servertis Fund I Trust 2009-2 Certificates,
Series 2009-2
MASTR Alternative Loao Trust 2003-7
Washington Mutual Mortgage Pass-Through
Certificates WMALT Series 2006-AR9
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
1008 North Mark Street,
("1 008 North Mark Street")
16840 West McCorrilick Street,
("16840 West McCormick Street")
327 Y, West 70th Street,
("327 Y, West 70th Street")
23830 West Vaoowen Street,
("23830 West Vaoowen Street")
7035 North Claire Avenue,
("7035 North Claire Avenue")
529 North Saint Louis Street,
("529 North Saint Louis Street")
7240 North Irondale Avenue,
("7240 North Irondale Avenue")
11515 North Balboa Boulevard,
Los Angeles, CalifOrnia 91406 2607019037
("11515 North Balboa Boulevard")
1219 East 51st Street,
("1219 East 51st Street")
12983 West Montague Street,
("12983 West Montague Street")
17
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
TRUST
MARM2007-3
2007-3
2006-BNC3
CSAB Mortgage-Backed Pass-Through
2005-9
LXS 2007-!6N Trust Fund
BNC Mortgage Loan Trust 2007-1, Mortgage
Pass-Through Certificates, Series 2007 -I
Bane [sic] of America Funding Corporation
2007-D
Structur.ed Asset Securities Corporation
2006-BC2
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
11536 West Cumpston Street,
North Hollywood, California 91601 2350002030
("11536 West Cumpston Street")
12771 West Filmore Street,
Pacoima, California 91331 2527030018
("12771 West Filmore Street")
13984 West Terra Bella Street,
("13984 West Terra Bella Street")
829 North Sycamore Avenue,
("829 North Sycamore Avenue")
1152 North Wilton Place,
("1152 North Wilton Place")
2339 South Lucerne Avenue,
("2339 South Lucerne Avenue")
3986 South Denker Avenue,
("3986 South Denker Avenue")
1190 Y, East 47th Street,
(" 1190 Y, East 47th Street")
18
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
TRUST
MASTR Asset-Backed Securities Trust 2006-
NC3 Mortgage Pass-Through Certificates,
Series 2006-NC3
Bear Steams Asset Backed. Securities, 2006-
ACl
Credit Suisse First Boston ARMT 2005-5
Citigroup Mortgage Loan Trust Inc.
LXS 2006-1 ON Trust Fund
Citigroup Mortgage Trust Inc. Asset Backed
Pass-Through Certificates, Series 2007-
AMCl
Credit Suisse First Boston Mortgage
Securities Corp. Home Equity Pass-Through
Certificates, Series 2007-CBl
CBASS 2006-SCl
CSFB Home Equity Pass-Through
Certificates, Series 2005-F!Xl
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
13483 West Brownell Street,
("13483 West Brownell Street")
.
213 North Windsor Boulevard,
("213 North Windsor Boulevard")
13720 North Gladstone Avenue,
("13720 North Gladstone Avenue")
1257 South Plymouth Boulevard,
("1257 South Plymouth Boulevard")
1525 East 0 Street,
(" 1525 East 0 Street")
(" 1517 West 228th Street")
5630 South Broadway,
("5630 South Broadway")
4228 East Abner Street,
("4228 East Abner Street")
19
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
TRUST
Certificates, Series 2007 -CB I
Credit Suisse First Boston Mortgage
Securities Corp. Home Equity Pass-Through
Specialty Underwriting and Residential
Finance Trust, Mortgage Loan Asset Backed
Certificates, Series 2006-BC4
MASTR Adjustable Rate Mortgages Trust,
Series 2007 -I
CitiGroup Mortgage Loan Trust 2007-AMC2
BancCap Asset Securitization Issuance
Corporation, Mortgage Loan Asset Backed
Citigroup Mortgage Loan Trust, 2005-HE3
WMALT 2007-0A5
Doe9
WaMu Mortgage Pass-Through Certificates,
Series 2007-HY5
PROPERTY ADDRESS
ASSESOR'S PARCEL
NUMBER
2326 North Alta Street,
(''2326 North Alta Street")
12731 West Rajah Street,
("12731 West Rajah Street")
7650 North Oak Park Avenue,
Los Angeles, California 9!406 2203010012
("7650 North Oak Park Avenue")
846 West Santa Cruz Street,
("846 West Santa Cruz Street")
224 West 71 st Street,
("224 West 71 st Street")
1920 South Sherbourne Drive,
(" 1920 South Sherbourne Drive")
5753 Y, South 8th Avenue,
("5753 Y, South 8th Avenue")
1412 South 4th A venue,
20
COMPLAINT
1
2
3
4
5
6
7
8
TRUST
RAMP 2006-EFC2
SAIL 2005-5
PROPERTY ADDRESS
San Pedro, California 90731
4110 Compton A venue,
("4110 Compton Avenue")
ASSESOR'S PARCEL
NUMBER
7456009014
6039014026
5116012036
9 ~ - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - ~
10
11
14. DEFENDANT U.S. Bank National Association, named in its individual capacity, is
personally liable for the unlawful practices committed in its capacity as trustee of the above-
12
13
referenced trusts, through the acts and omissions of its officers, employees and agents, who
participated in, controlled, approved, aided, abetted, encouraged, facilitated, ratified, and otherwise
14
15
intentionally or negligently acted or failed to act with respect to the unlawful conduct described
herein. Accordingly, DEFENDANT U.S. Bank National Association is personally at fault with
16
respect to its obligations arising from ownership or control of each trust property identified above.
17
18
19
20
21
(Cal. Prob. Code, 18001.)
c Doe Defendants
15. PLAINTIFF is ignorant of the true names and capacities of DEFENDANTS DOES 1
through 2500, inclusive, and therefore sues these DEFENDANTS by fictitious names. PLAINTIFF
will amend this Complaint under Code of Civil Procedure section 4 7 4 to insert the true names and
22
23
24
25
capacities of these DEFENDANTS, when ascertained.
LEGAL DUTIES AND RESPONSIBILITIES OF RESIDENTIAL PROPERTY OWNERS
16. An extensive regulatory framework of federal, state, county and municipal building,
fire, health, safety and housing laws govern the condition and operation of residential buildings in
26
27
28
21
COMPLAINT
1 the City. Owners who fail to comply with those laws may be cited by the relevant agencies, and, if
2 they fail to comply, may be subject to the imposition of civil sanctions and/or criminal prosecution.
3 17. DEFENDANT U.S. Bank National Association has acquired and held title to more
4 than 1,500 residential properties in the City during the four years preceding the filing of this
5 Complaint. DEFENDANT U.S. Bank National Association, as the owner of these properties,
6 assumes the same legal duties and responsibilities to maintain these properties as any other owner
7 A.
8
9
Legal Duties and Responsibilities Relating to Vacant Properties
I.
18.
California Public Nuisance Law
A nuisance is defined as including"[ a]nything which is ... offensive to the senses, or
10 an obstruction to the free use of property, so as to interfere with the comfortable enjoyment oflife or
11 property .... " (Civ. Code, 3479.)
12 19. A public nuisance is "one which affects at the same time an entire community or
13 neighborhood, or any considerable number of persons, although the extent of the annoyance or
14 damage inflicted upon individuals may be unequal." (Civ. Code, 3480.)
15 20. The concept of a nuisance per se arises when a legislative body with appropriate
16 jurisdiction, in the exercise of police power, expressly declares a particular object or substance,
17 activity, or circumstance, to be a nuisance. In California, city legislative bodies are empowered to
18 declare what constitutes a nuisance. (Gov. Code, 38771.)
19 21. The City has declared any violation of any provision of the Los Angeles Municipal
20 Code ("LAMC") a public nuisance. (LAMC, 11.00(1).)
21 22. Nuisances per se are so regarded because no proof is required, beyond the actual fact
22 of their existence, to establish the nuisance. Where the law expressly declares something a nuisance,
23 then no inquiry beyond its existence need be made and in this sense its mere existence is said to be a
24 nuisance per se. No ill effects need to be proved.
25 23. All parties to a nuisance per se, he who creates it and he who maintains it, are
26 responsible for its effect, without limitations of conditions or time.
27
28
22
COMPLAINT
1 24. As owner, DEFENDANT was required to maintain its properties free of any and all
2 nuisance conditions. DEFENDANT neglected this duty in violation of California public nuisance
3 law.
4 2. California Vacant Foreclosed Property Maintenance Law
5 25. The legal owner of a vacant residential property acquired through foreclosure is
6 required to maintain the property. (Civ. Code, 2929.3(a)(l).) A governmental entity may impose
7 a civil fine of up to $1,000 per day on the owner for failure to comply, but may not impose fines
8 under both this section and a local ordinance. (Civ. Code, 2929.3(e).) Failure to maintain means
9 failure to care for the exterior of the property, including, but not limited to: permitting excessive
10 foliage growth, failing to keep the property free of trespassers or squatters, failing to prevent
11 mosquito larvae from growing in standing water or other conditions that create a public nuisance.
12 (Civ. Code, 2929.3(b).)
13 26. As owner of vacant residential property acquired through foreclosure, DEFENDANT
14 US Bank National Association failed to maintain the exterior of vacant residential properties in
15 violation of California Civil Code 2929.3(a)(1).
16 3. The Los Angeles Vacant Building Ordinance
17 27. Unoccupied properties in the City are subject to the Los Angeles Vacant Building
18 Ordinance ("VBO"), which went into effect on September 30, 1999. (LAMC, 98.0701 et seq.) A
19 "Vacant Structure" is defined by the VBO as any structure or building that is unoccupied, or
20 occupied by unauthorized persons, and is unsecured or barricaded. (LAMC, 98.0702.)
21 28. It is unlawful for the owner of a Vacant Structure to fail to remove any waste,
22 rubbish, debris, flanunable, combustible, or hazardous materials from the interior of the vacant
23 structure. (LAMC, 98.0706 (a) and 91.8904.1.)
24 29. As owner of a Vacant Structure, DEFENDANT U.S. Bank National Association
25 failed to remove any waste, rubbish, debris, flammable, combustible, or hazardous materials from
26 the interior of a Vacant Structure in violation of LAMC, 98.0706 (a) and 91.8904.1.
27
28
23
COMPLAINT
I 30. It is unlawful for the owner of a Vacant Structure to fail to remove any waste,
2 rubbish, debris, excessive vegetation, inoperable vehicles, trailers, appliances, and any other similar
3 materials from the yards surrounding the Vacant Structure. (LAMC, 98.0706 (b) and 91.8904.1.)
5 failed to remove waste; rubbish, debris, excessive vegetation, inoperable vehicles, trailers,
6 appliances, and any other similar materials from the yards surrounding the Vacant Structure in
7 violation ofLAMC, 98.0706 (b) and 91.8904.1.
8 32. It is unlawful for the owner of a Vacant Structure to fail to lock, barricade or secure
9 all doors, windows, damaged walls, roofs, foundations and other openings of the Vacant Structure.
10 (LAMC, (98.0706 (c) and 91.8904.1.)
12 failed to lock, barricade or secure all doors, windows, damaged walls, roofs, foundations and other
13 openings of a Vacant Structure in violation ofLAMC, 98.0706 (c) and 91.8904.1.
14 34. It is unlawful for the owner of a Vacant Structure to fail to fence the entire lot
15 containing the Vacant Structure. (LAMC, 98.0706 (c) and 91.8904.1.)
16 35. As owner of a vacant structure, DEFENDANT U.S. Bank National Association failed
17 to fence the entire lot containing a Vacant Structure in violation of LAMC, 98.0706 (c) and
18 91.8904.1.
19 36. The owner of a vacant lot that is open to unauthorized entry is required to secure all
20 openings by installing a ten-foot-high, chain-link fence complete with lockable gates. (LAMC,
21 91.8904.1.)
22 37. As owner of a vacant lot, DEFENDANT U.S. Bank National Association failed to
23 secure all openings accessible for entry and/or failed to properly fence the property in violation of
24 LAMC, 91.8904.1
25 38. The owner of a Vacant Structure must post the name, address and telephone number
26 of both the owner and any agent in control of the property on a Vacant Structure as well as a "No
27 Trespassing" sign. (LAMC, 91.8904.1, 98.0706(e), and 98.0714.)
28
24
COMPLAINT
I 39. As owner of a Vacant Structure, DEFENDANT U.S. Bank National Association
2 failed to post a Vacant Structure as required in violation ofLAMC, 91.8904.1, 98.0706 (e), and
3 98.0714.
4 40. The owner of a Vacant Structure must provide the Los Angeles Police Department
5 with written authorization to arrest trespassers on the property. (LAMC, 41.24 and 98.0706 (f).)
6 41. As owner of a Vacant Structure, DEFENDANT US Bank National Association failed
7 to provide written authorization to arrest trespassers in violation ofLAMC, 41.24 and 98.0706
8 (f).
9 42. An owner of a Vacant Structure with a swimming pool must fence the pool and
10 remove all water from it. (LAMC, 91.8904.1.)
II 43. As owner of a Vacant Structure, DEFENDANT U.S. Bank National Association
12 failed to fence and remove all water from a swimming pool in violation ofLAMC, 91.8904.1.
13 4. The Los Angeles Foreclosure Registry Ordinance
14 44. The Los Angeles Foreclosure Registry Ordinance ("FRO") went into effect on July 8,
15 20 I 0. The FRO establishes "an abandoned residential property registration program as a mechanism
16 to protect residential neighborhoods from becoming blighted through the lack of adequate
17 maintenance and security of abandoned properties as a result of the foreclosure crisis." (LAMC,
18 164.Ql.) The FRO requires that foreclosed properties within the City be registered with the Los
19 Angeles Housing Department. The registrant must provide the name, the street and/or office mailing
20 address, and a contact name and telephone number for the beneficiary and/or trustee and the local
21 property management company responsible for the security, maintenance and marketing of the
22 property. Said contact persons must be empowered to comply with code enforcement orders issued
23 by the City, provide a trespass authorization to law enforcement authorities if the property is vacant,
24 conduct timely inspections of the property, and accept rental payments from tenants if no
25 management company is otherwise employed for such purpose.
26 45. As owner, DEFENDANT U.S. Bank National Association failed to register its
27 properties with the Los Angeles Housing Department in violation ofLAMC, 164.01.
28
25
COMPLAINT
1 B.
2
3
Legal Duties and Responsibilities Relating to Occupied Properties
1. The California Health and Safety Code
46. Section 17920.3 of the California Health and Safety Code designates a building as
4 substandard where any of the following conditions exist "to an extent that endangers life, limb,
5 health, property, safety or welfare of the public or the occupants":
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
A. Inadequate sanitation, which is defined to include, but is not limited to: Jack of hot
and cold running water in a dwelling unit (id., subd. (a)(5)), lack of adequate heating
(id., subd. (a)(6)), Jack of or improper operation of required ventilating equipment
(id., subd. (a)(7)), dampness of habitable rooms (id., subd. (a)(ll)), and general
dilapidation or improper maintenance (id., subd. (a)(l3)).
B. Structural hazards, which are defined to include, but are not limited to, members of
walls, partitions, or other vertical supports that split, lean, list, or buckle due to
defective material or deterioration. (ld., subd. (b)(4).)
C. Any nuisance. (Id., subd. (c).)
D. Plumbing that does not conform with all applicable Jaws in effect at the time of
installation, has not been maintained in good condition, or involves cross connections
or siphonage between fixtures. (I d., subd. (e).)
E. Faulty weather protection, including, but not limited to: deteriorated or ineffective
waterproofing of exterior walls, roof, foundations or floors, including broken
windows or doors (id., subd. (g)(2)), defective or Jack of weather protection for
exterior wall coverings, including Jack of paint or other approved protective covering
(id., subd. (g)(3)), and broken, rotted, split or buckled exterior wall coverings or roof
coverings (id., subd. (g)( 4)).
F. Accumulation of weeds, vegetation, junk, dead organic matter, debris, garbage, offal,
rodent harborages, stagnant water, combustible materials and similar materials or
conditions constituting fire, health, or safety hazards. (I d., subd. G).)
G. A building or portion thereof that is determined to be unsafe due to inadequate
26
COMPLAINT
1
2
3
4
5
6
7
8
9
10
11
12
13
14 47.
maintenance, in accordance with the latest edition of the Uniform Building Code.
(/d., subd. (k).)
H. A building or portions thereof not provided with the required adequate exit facilities,
except a building or portion thereof whose exit facilities conformed with all
applicable laws at the time of their construction and that have been adequately
maintained and increased in relation to any increase in occupant load, alteration, or
addition, or any change in occupancy. (/d., subd. (!).)
I. A building or portion thereof that lacks fire-resistive construction or fire-
extinguishing systems or equipment required by state law, except a building or
portion thereof that conformed with all applicable laws at the time of its construction
and whose fire-resistive integrity and fire-extinguishing system or equipment have
been adequately maintained and improved in relation to any increase in occupant
load, alteration, or addition, or any change in occupancy. (/d., subd. (m).)
As owner DEFENDANT U.S. Bank National Association was required to eliminate
15 and remedy all substandard conditions at the residential properties it owned. DEFENDANT U.S.
16 Bank National Association neglected these duties and responsibilities, in violation of section
17 17920.3 of the California Health and Safety Code.
18 2. Statutory Warranty of Habitability
19 48. Owners and operators of residential properties have a statutory duty to ensure that
20 their buildings are in a condition fit for human occupation and "for repairing all subsequent
21 dilapidations of the building that render the building untenantable." (Civ. Code, 1941.) Tenants
22 cannot waive these rights by agreement.
23 49. A dwelling is deemed "untenantable" if it substantially lacks any of the following:
24
25
26
27
28
A. Effective waterproofing and weather protection of roof and exterior walls, including
unbroken windows and doors;
B. Plumbing or gas facilities that conformed to applicable law in effect at the time of
installation and that have been maintained in good working order;
27
COMPLAINT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
C. A water supply approved under applicable Jaw that is either under the control of the
tenant and capable of producing hot and cold running water, or a system that is under
the control of the landlord and which produces hot and cold running water connected
to a sewage disposal system approved under applicable law;
D. Heating facilities that conformed with applicable law at the time of installation and
that have been maintained in good working order;
E. Electrical lighting, with wiring and electrical equipment that conformed with
applicable law at the time of installation and that have been maintained in good
working order;
F. Building, grounds, and appurtenances at the time of the commencement of the lease
or rental agreement in every part maintained as clean, sanitary and free from all
accumulations of debris, filth, rubbish, garbage, rodents and vermin, and all areas
under control of the landlord kept in every part maintained as clean, sanitary and free
from all accumulations of debris, filth, rubbish, garbage, rodents and vermin;
G. An adequate number of appropriate receptacles for garbage and rubbish, in clean
condition and good repair at the time of the commencement of the lease or rental
agreement, with the landlord providing appropriate serviceable receptacles thereafter
and being responsible for the clean condition and good repair of those receptacles
19 under his or her control; and
20 H. Floors, stairways and railings maintained in good repair. (Civ. Code, 1941.1.)
21 50. A dwelling is also deemed untenantable if it is a residential unit that meets the
22 definition of a "substandard building" as set forth in California Health and Safety Code section
23 17920, or if it contains lead hazards .as set forth in California Health and Safety Code section
24 17920.10. (Civ. Code, 1941.1.)
25 51. As owner, DEFENDANT U.S. Bank National Association was required to ensure
26 that its residential buildings were in a condition fit for human occupation and "for repairing all
27 subsequent dilapidations of the building that render the building untenantable." (Civ. Code, 1941
28
28
COMPLAINT
1 and Health & Saf. Code, 17920.) DEFENDANT U.S. Bank National Association neglected these
2 duties and responsibilities, in violation of California Civil Code section 1941.
3 3. Common Law Warranty of Habitability
4 52. In addition to the statutory warranty of habitability, a warranty of habitability is
5 implied by law in every residential lease in California. An owner must maintain a dwelling in
6 substantial compliance with those applicable building and housing code standards that materially
7 affects a tenant's health and safety to meet the obligations under the common law implied warranty
8 ofhabitability.
9 53. As owner, DEFENDANT U.S. Bank National Association violated the implied
10 warranty ofhabitability.
11 54. Tenants are entitled to monetary damages for breach of the warranty of habitability.
12 Such damages are generally measured by the difference between the fair rental value of the premises
13 if they had been as warranted, and the fair rental value of the premises as they were during a tenant's
14 occupancy in the unsafe and unsanitary condition in which they were maintained.
15 55. As owner, DEFENDANT U.S. Bank National Association failed to provide tenants
16 with monetary damages for breach of the warranty of habitability, in violation of the common law
17 warranty of habitability.
18 4. The Covenant of Quiet Enjoyment
19 56. There is an implied covenant of quiet enjoyment in every lease in California,
20 requiring that the tenant shall not be disturbed in his or her possession by the landlord. (Civ. Code,
21 1927.)
22 57. The implied covenant of quiet enjoyment has been expanded beyond the traditional
23 right of physical possession of the premises to a guarantee of the tenant's beneficial enjoyment of the
24 premises. A landlord is bound to refrain from any action which interrupts a tenant's beneficial
25 enjoyment of the rental property.
26 58. A constructive eviction occurs when the landlord, by act or omission, renders the
27 premises unfit for the purposes for which they were leased. Permitting untenantable conditions as
28
29
COMPLAINT
1 defined by Civil Code section 1941.1 to exist amounts to constructive eviction, which is a breach of
2 the tenant's right to quiet enjoyment.
3 59. Harassment of a tenant by a landlord with the intent of causing the tenant to vacate
4 the premises also amounts to constructive eviction and breach of the tenant's right to quiet
5 enjoyment.
6 60. As owner, DEFENDANT U.S. Bank National Association violated the covenant of
7 quiet enjoyment of its tenants by permitting untenantable conditions to exist at its residential
8 properties.
9 c.
10
11
Tenant Protections
I.
61.
Section 8 of the United States Housing Act
Section 8 of the United States Housing Act of 193 7 ("Section 8") (24 C.F .R. 982.1
12 et seq.) is funded and overseen by the United States Department of Housing and Urban Development
13 ("HUD"). It authorizes the payment of rental housing assistance to private landlords on behalf of
14 extremely low and very low-income individuals, f3milies, senior citizens and persons with
15 disabilities. (42 U.S.C. 1437f(o)(7).)
16 62. Section 8 operates through several programs, the largest of which is the Housing
17 Choice Voucher Program ("Voucher Program"). (42 U.S.C. 1437 et seq.) Under the Voucher
18 Program, HUD pays rental subsidies to eligible families so that they can afford decent, safe and
19 sanitary housing. (24 C.P.R. 982.1(a).)
20 63. The Housing Authority of the City of Los Angeles ("HACLA") is the municipal
21 agency responsible for the local administration of HUD programs. HAC LA first implemented the
22 Section 8 Program in 1975, providing rent subsidies in the form of housing assistance payments to
23 private landlords on behalf of eligible families.
24 64. Pursuant to HACLA requirements, ifthe tenant consents to the termination of the
25 lease and moves, the Housing Assistance Payments ("HAP") contract will be terminated. If the
26 owner intends to terminate the lease without the tenant's consent, however, then the tenant must be
27 evicted in accordance with state and local laws.
28
30
COMPLAINT
1 65. HAC LA also requires that the owner immediately provide HAC LA with a copy of all
2 eviction documents served on the tenant. HACLA will continue to make rental assistance payments
3 on behalf of the tenant until the HAP contract is terminated until which time, the tenant is required to
4 pay only the amount of rent determined by HACLA. (24 C.F.R. 982.310.)
5 66. As owner participating in the Section 8 Program, DEFENDANT U.S. Bank National
6 Association failed to comply with HACLA's requirements and violated HACLA's Section 8
7 Program regulations by attempting to evict tenants in violation of state and local laws.
8 2. The Protecting Tenants at Foreclosure Act
9 67. The Federal Protecting Tenants at Foreclosure Act ("PTFA") went into effect on
10 May 20, 2009. The PTF A applies to foreclosure on any "federally related mortgage loan" and
11 protects tenants from eviction by an immediate successor in interest in a foreclosed property. Under
12 the PTF A, a landlord who has acquired a property through foreclosure may not evict tenants on the
13 basis of foreclosure alone. Tenants must be permitted to stay in the residence until the end of their
14 lease agreement, with two exceptions: when the property is sold after foreclosure and the purchaser
15 occupies the residence; or, whenever the tenant has no lease or the lease is terminable under state
16 law. Tenants may only be evicted where allowed by state, local, and federal law and must be
17 provided with at least 90 days' notice prior to eviction. (12 U.S.C. 5220.)
18 68. DEFENDANT U.S. Bank National Association violated the PTFA by attempting to
19 evict tenants in violation of state and local laws and with less than 90 days' notice.
20 3. The Los Angeles Rent Stabilization Ordinance
21 69. Multi-unit residential properties in the City with an initial certificate of occupancy
22 issued prior to October 1, 1978, are subject to the Los Angeles Rent Stabilization Ordinance
23 ("RSO"). (LAMC, 151.02.) The RSO limits the amount landlords may increase rent each year to
24 between three and five percent, depending on whether the landlord pays for utilities. (LAMC,
25 151.06.)
26 70. Under the RSO, the rent for a rental unit may be increased without the permission of
27 the Rent Adjustment Commission if twelve months or more have elapsed since the last such rent
28
31
COMPLAINT
1 increase, and by no more than the allowable annual increase percentage. (LAMC, 151.06, subd.
2 (D).)
3 71. Pursuant to the RSO, a landlord may not terminate or fail to renew a rental assistance
4 contract with HACLA and then demand that the tenant pay rent in excess of the tenant's portion of
5 the rent under the rental assistance contract. (LAMC, 151.04.)
6 72. The RSO also restricts the grounds upon which tenants may be evicted. Under the
7 RSO, tenants may only be evicted: (A) for failure to pay rent; (B) for breach of the lease terms; (C)
8 for committing or permitting a nuisance; (D) for using the premises for an illegal purpose; (E) for
9 refusing to execute a written renewal or extension of an expired lease; (F) for refusing to grant
10 reasonable access to the unit for the purpose of making repairs or improvements; (G) for being a
11 subtenant not approved by the landlord; (H) if the landlord seeks to recover possession for the
12 landlord's personal use and occupancy; (I) for refusing to temporarily relocate or to honor a
13 permanent relocation agreement so that the landlord may undertake Primary Renovation Work; (J) if
14 the landlord seeks to demolish the unit or permanently remove it from rental housing use (as
15 required under the E!Iis Act, California Government Code, section 7060 et seq.); (K) if the landlord
16 seeks possession to comply with a governmental agency's order that requires the unit to be vacated;
17 or (L) if the unit is owned by HUD and it seeks to recover possession of the unit prior to selling it.
18 (LAMC, 151.09.) Foreclosure is not among the lawful grounds for eviction.
19 73. As owner, DEFENDANT U.S. Bank National Association violated the RSO by
20 unlawfully increasing rents and unlawfully evicting tenants on grounds other than those enumerated
21 in the RSO.
22 4. The Los Angeles Foreclosure Eviction Ordinance
23 74. On December 23, 2008, the Los Angeles City Council enacted the Los Angeles
24 Foreclosure Eviction Ordinance ("FEO") "to prevent the displacement of tenants and the loss of
25 rental units in the City of Los Angeles due to the foreclosure of the property, and to prevent
26 homelessness and nuisances and blight caused by vacant foreclosed properties." (LAMC, 49.90.)
27 The FEO applies to all properties located in the City, including those not regulated under the RSO.
28
32
COMPLAINT
1 75. The FEO provides that a landlord obtaining title to rental property through
2 foreclosure may evict tenants and take possession of the property only for one of the twelve reasons
3 specified in the RSO. It further provides that a landlord must comply with all of the provisions of
4 LAMC section 151.09, including, without limitation, the payment of relocation fees required
5 pursuant to the provisions ofLAMC section 151.09, subdivision (G). (LAMC, 49.92.)
6 76. DEFENDANT U.S. Bank National Association violated the FEO by evicting tenants
7 on grounds other than those enumerated in the FEO based on foreclosure.
8 D. Other Municipal Laws
9 1. LAMC Zoning Code
10 77. , The Los Angeles Zoning Code regulates the uses of property within the City,
11 restricting the activities that may be conducted on residential property, including a prohibition on
12 conducting major automobile repair, the open storage of inoperable automobiles and the parking of
13 automobiles on front yards of residential properties. (LAMC, 12.2l.A.8, subd. (a), 12.21, subd.
14 (A)(8)(b) and 12.21, subd. (C)(l)(g).)
15 78. As owner, DEFENDANT U.S. Bank National Association permitted the repair,
16 storage and parking of automobiles on the front yards of residential properties in violation of the Los
17 Angeles Zoning Code.
18 2. LAMC Building Code
19 79. Section 91.1000 of the LAMC adopts, by reference, Chapter 10 of the California
20 Building Code. Chapter 10 requires, among other things, that:
21 A. Exit doors must be readily openable without the use of a key or special knowledge or
22 effort. (Cal. Code Regs., tit. 24, 1 008.1.9.)
23
24
25
26
27
28
B. Bars, grilles, grates or similar devices must not be placed over emergency escape and
rescue openings if the minimum net clear opening is less than five square feet and
such devices are not releasable without the use of a key, tool, special knowledge, or
effort or force greater than that which is required for normal operation of the escape
and rescue opening. (ld., 1029.4.)
33
COMPLAINT
1 80. Section 91.900 of the LAMC adopts, by reference, Chapter 9 ofthe California
2 Building Code, regulating the design, installation and operation of fire protection systems. Chapter
3 9 requires, among other things, that:
4 A. Smoke alarms must be installed in residential buildings at all of the following
5 locations: on the ceiling or wall outside of each separate sleeping area in the
6 immediate vicinity of bedrooms, in each room used for sleeping purposes, and in each
7 story within a dwelling unit, including basements. (Cal. Code Regs., tit. 24,
8 907.2.11.2.)
9 B. Smoke alarms must receive their primary power from the building wiring and must be
10 equipped with a battery backup, or be connected to an emergency electrical system.
11 Smoke alarms must emit a signal when the batteries are low, and their wiring must be
12
13 81.
permanent. (ld., 907.2.11.4.)
Section 91.1200 of the LAMC adopts by reference Chapter 12 of the California
14 Building Code, which governs the ventilation of interior spaces of buildings. Chapter 12 requires,
15 among other things, that:
16 A. Buildings have natural or mechanical ventilation. (Cal. Code Regs., tit. 24 1203.1.)
17
18
19
20
21
22
23
24
25 82.
B. Natural ventilation of an occupied space may be through windows, doors, louvers, or
other openings to the outdoors, and the operating mechanism for such openings must
be readily accessible so that the openings are readily controllable by the building's
occupants. (ld., 1203.4.)
C. The space between the bottom of floor joists and the earth under any building, except .
spaces occupied by basements or cellars, have ventilation openings through
foundation or exterior walls, and that these openings must be placed so as to provide
cross-ventilation of the under-floor space. (Id., 1203.3.)
Section 91.3109 of the LAMC which adopts, by reference, California Building Code
26 3109.4.3 regulates the safety and maintenance of swimming pools requiring that swimming pool
27 enclosures be located so as to prohibit permanent structures, equipment, or similar objects from
28
34
COMPLAINT
1 being used to climb the barriers. Additionally, the recirculation and purification system of any
2 swimming pool, fish pond, or any other body of water that is required to be fenced must be operated
3 and maintained so as to keep the water of reasonable clarity. (LAMC, 91.8118.)
4 83. Section 91.3401.2 of the LAMC requires that buildings shall be maintained in a safe
5 and sanitary condition, and specifies that the owner or the owner's designated agent shall be
6 responsible for such maintenance. (LAMC, 91.3041.2.)
7 84. Section 91.8104 of the LAMC requires that every existing building be maintained in
8 safe and sanitary condition and good repair, and that the premises of every existing building be
9 maintained in good repair and free from graffiti, debris, rubbish, garbage, trash, overgrown
I 0 vegetation, or other similar material. The following maintenance is required in all existing
II buildings:
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
A. All physical elements must be cleaned, painted, stained, refinished, or restored to a
condition as close as reasonably feasible to their originally required and approved
state. (LAMC, 91.8104.1.)
B. Interior and exterior wall surfaces must be maintained clean and free from
accumulation of debris, rubbish, garbage, trash, overgrown vegetation and other
similar material. (!d., 91.8104.2.)
C. Roofs must be waterproof and all gutters must be maintained in working order. (!d.,
91.8104.3.)
D. The walls and ceilings of every room must be finished, sealed, coated, painted or
covered, and loose wall paper or other surfacing must be removed so as to provide a
smooth, clean and sanitary surface. (!d., 91.8104.4.)
E. Doors, windows, cabinets, frames and similar finishes must be finished, sealed,
coated, painted, or covered, broken or cracked glass or plastics must be replaced, and
tom, worn or broken screens must be repaired, replaced or removed. (!d.,
91.8104.5.1.)
35
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
F. Legally required insect screens must not be removed other than for repair or
replacement. (!d., 91.8104.5.2.)
G. Floors and floor covering must be maintained free from defects, holes, loose, worn or
missing portions that could present a safety hazard to occupants. (!d., 91.8104.6.)
H. Plumbing fixtures, shower enclosures, wastewater drain lines, water supply lines,
counters, drain boards and adjoining wall and floor areas provided to protect against
water damage must be kept free of cracks, chips, defects, missing portions, dirt or
foreign materials. Leaking drain or supply lines and cracked, chipped, or damaged
fixtures must be repaired or replaced. (!d., 91.8104.7.)
I. Broken, loose, frayed, inoperative portions of electric service, lines, switches, outlets,
fixtures and fixture coverings must be repaired or replaced, and fixtures, fixture
coverings, switches and outlets must be kept free of dirt or foreign materials. (!d.,
9.8104.8.1.)
J. Flexible cords and cables (extension cords) may not be used as a substitute for fixed
wiring. (!d., 91.8104.8.2.)
K. Plumbing and waste drain lines must be kept clear of blockages that would cause any
fixture to overflow. (!d., 91.8104.9.)
L. Water supply lines to kitchen and bathroom fixtures must provide at least one gallon
per minute of water flow, of at least 100 degrees Fahrenheit (id., 91.8104.10.1), hot
water must be provided to each residential kitchen and bathroom fixture at all times
(id., 91.8104.10.2), and no time clock or other device may be installed to prevent
the supply ofrequired hot water at any time. (!d., 91.8104.10.3.)
M. Heating units must be operable and in good repair. (!d., 91.8104.11.)
N. Exterior wall surfaces must be weather tight. (!d., 9.8104.12.)
0. Fences must be straight, uniform and structurally sound, and wooden fences must be
painted or sealed to prevent their becoming a nuisance from weathering or
deterioration (id., 91.8104.13.); and,
36
COMPLAINT
1
2
3 85.
P. Exterior walls and fences must be kept free of graffiti visible from a public street or
alley (id., 91.8104.15).
As owner, DEFENDANT U.S. Bank National Association failed to maintain these
4 minimum requirements and failed to abate nuisance, hazardous or substandard residential conditions
5 at its residential properties, in violation of the California Building Code and the LAM C.
6 3. LAMC Electrical Code
7 86. The Los Angeles Electrical Code provides minimum standards for electrical
8 installations in the City to reduce fire hazards from electrical causes. (LAMC, 93.0102.)
9 87. The installation, operation and/or maintenance of electrical systems or equipment that
10 do not comply with all applicable provisions of the Electrical Code is prohibited. (LAMC,
11 93.0104.) Any person who installs, alters, repairs, uses or maintains electric wiring shall be
12 responsible for compliance with the Electrical Code. (/d., 93.0314.) Abandoned wiring is
13 prohibited and the conductors of abandoned or discontinued circuits must be removed from the
14 raceways, or be insulated and maintained in wiring enclosures as if in use. (/d., 93.0312.)
15 88. As owner, DEFENDANT U.S. Bank National Association failed to maintain
16 electrical systems and equipment to minimum standards to reduce fire hazards in violation of the Los
17 Angeles Electrical Code and LAMC 93.0104.
18 4. LAMC Plumbing Code
19 89. Section 94.300.0 of the LAMC adopts, by reference, Chapter 3 of the California
20 Plumbing Code, which requires that:
21
22
23
24
25
26
27
28
A. All pipes, pipe fittings, traps, fixtures, material and devices used in a plumbing
system shall be free from defects and submitted to the authority having jurisdiction
for approval. (California Plumbing Code, 301.1.1.)
B. Vent pipes may not be used as waste pipes, nor vice-versa, and single-stack drainage
and venting systems with unvented branch lines are prohibited. (/d., 311.4.)
C .. Sewage, human excrement, and other liquid wastes must be disposed of by means of
an approved drainage system. (/d., 303.0.)
37
COMPLAINT
1 90. Section 94.500 ofthe LAMC adopts, by reference, Chapter 5 of the California
2 Plumbing Code, which governs the construction, location and installation of water heaters.
3 (California Plumbing Code, 501.0.) Chapter 5 requires that water heaters must be anchored or
4 strapped to resist horizontal displacement due to earthquakes and, if operated by gas, must be
5 connected to venting systems. (ld., 508.2 and 510.2.1.)
6 91. As owner, DEFENDANT U.S. Bank National Association failed to maintain the
7 plumbing in its residential buildings free from defects, in violation of the California Plumbing Code
8 and the LAMC.
9 5. Mechanical Code
10 92. Section 95.104 of the LAMC adopts, by reference, the California Mechanical Code
11 104.4. The purpose of the Mechanical Code is to safeguard life, health, property and public
12 welfare by regulating the design, construction, installation, alteration, repair, quality of materials,
13 location, operation and maintenance of heating, ventilating, air-conditioning and refrigeration
14 equipment and other miscellaneous heat-producing appliances installed in buildings located within
15 the City. (LAMC, 95.1 02.) Generally, mechanical systems, materials and appurtenances must be
16 maintained in safe, proper and hazard-free condition, and the owner or owner's designated agent is
17 responsible for such maintenance.
18 93. As owner, DEFENDANT U.S. Bank National Association failed to maintain
19 mechanical systems at its properties in safe, proper and hazard-free condition, in violation of the
20 California Mechanical Code and the LAMC.
21 E. County Property Tax Laws
22 94. All real property is taxable. (Cal. Const., art. XIII, 1.) Annual taxes on real
23 property are payable in two installments to the County, with the first half due November 1st of each
24 year. (Rev. & Tax. Code, 2605.) The second half of real property taxes are due February 1st of
25 each year, and, if unpaid, are subject to a delinquent penalty often percent attaching to them
26 beginning April lOth. (Id., 2606 and 2618.)
27
28
38
COMPLAINT
1 95. As owner, DEFENDANT U.S. Bank National Association failed to timely pay
2 required annual property taxes to the County of Los Angeles in violation of the California
3 Constitution and the California Revenue and Taxation Code.
4 DEFENDANT'S LIABILITY
5 A.
6
DEFENDANT's Unlawful and Unfair Business Practices
96. Over the past four years, DEFENDANT U.S. Bank National Association in its
7 individual and representative capacities was repeatedly notified of the unlawful conditions existing
8 at properties it acquired and owned across the country. Community groups and city governments in
9 several jurisdictions contacted DEFENDANT U.S. Bank National Association in its corporate and
10 representative capacities, with the goal of getting DEFENDANT U.S. Bank National Association to
11 improve conditions at its neglected properties. LAHD and the Los Angeles Department of Building
12 and Safety ("LADBS") have repeatedly advised DEFENDANT U.S. Bank National Association of
13 the unlawful conditions existing at the Foreclosed Properties, to no avail.
14 97. Despite repeated notifications, DEFENDANT U.S. Bank National Association has
15 failed and continues to fail to abate or ensure the abatement of the unlawful conditions at its
16 Foreclosed Properties.
17 98. The DEFENDANT U.S. Bank National Association's policy of inaction, combined
18 with the geographic concentration of its foreclosed properties in already economically disadvantaged
19 neighborhoods within the City, have resulted in decreased property values on such a large scale that
20 neighborhoods have been destabilized and communities harmed.
21 B. DEFENDANT's Unlawful Practices
22 99. The following chart details one hundred fifty eight (158) examples of Foreclosed
23 Properties where DEFENDANT U.S. Bank National Association caused or permitted unlawful
24 conditions to exist, was issued notices ordering that the violations be remedied, and failed to timely
25 remedy the cited violations.
26 100. A number of the abandoned Foreclosed Properties open to unauthorized entry,
27 provided as examples below, were boarded, fenced, cleaned and/or had graffiti removed by City
28
39
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
contractors due to the hazardous nature of the nuisance conditions present and DEFENDANT U.S.
Bank National Association's failure to abate the violations.
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
U.S. Bank as trustee for In or around January 2007
Substandard conditions including,
Structured Asset Investment
1562 West 226th
through in or about
among others, (A) damp room
Loan Trust (series unidentified)
Street
January 2009.
conditions and (B) the presence
of mold.
U.S. Bank as trustee for Substandard conditions including,
Structured Asset Securities
925 North Virgil
In or around April 2007 among others, the unapproved
Corporation Mortgage Pass-
Avenue
through in or about use of the building or structure
Through Certificates, Series January 2009. without a valid Certificate of
2006-BC2 Occupancy.
U.S. Bank as trustee for LXS 643 North Rossmore
In or around May 2007 Abandoned structure open to
2005-0SN Avenue
through in or about June unauthorized entry and other
2009. substandard conditions.
U.S. Bank as trustee for In or around May 2007
among others, (A) unsafe and
MASTR Asset Backed 1008 East 41st Place through in or about
unsanitary deteriorated floor
Securities Trust 2006-WMC2 August 2009.
covering and (B) defective and
damaged leaking faucets and
valves.
U.S. Bank as trustee for
In or around June 2007 among others, (A) lack of
Harborview 2006-4
1341 West 51st Place through in or about required maintenance to building,
December 2009. structure, and premises and (B)
lack of required stairway railing.
In or around July 2007
U.S. Bank as trustee for Doe I, 1547 West lith
through in or about May
among others, (A) lack of hot
Series 2006-HEI Street
2009.
water and (B) unsafe, unsanitary
and deteriorated flooring.
U.S. Bank as trustee for In or around July 2007 Abandoned structure open to
Structured Asset Investment 148 East 79th Street through in or about June unauthorized entry and other
Loan Trust, 2006-BNCI 2009. substandard conditions.
In or around August 2007
among others, (A) lack of
U.S. Bank as trustee for Doe 2
3573 West Florence
through in or about
required weatherproofmg of
Avenue exposed surfaces; and (B)
February 2010.
missing front cover at electrical
panel.
I 0972 South Hickory
In or around August 2007 Abandoned structure open to
Street
through in or about unauthorized entry and other
January 2009. substandard conditions.
40
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
U.S. Bank as trustee for C-
In or around September
BASS Mortgage Loan Asset
237 East I 03rd Street 2007 through in or about
Backed Certificates, Series
February 2009.
conditions and (B) defective and
2006-CB8 deteriorated wall covering.
3
4
5
U.S. Bank as trustee for LXS 4502 West Olympic
In or around September Abandoned structure open to
2005-?N Boulevard
2007 through in or about unauthorized entry and other
October 2009. substandard conditions.
6
7
Abandoned structure with
substandard conditions including,
8
9210 South Figueroa
In or around September among others, (A) excessive and
U.S. Bank as trustee for Doe 4 2007 through in or about overgrown vegetation on the
Street
February 2009. premises and (B) unsanitary
accumulation of rubbish, trash
9
10
and debris.
11
U.S. Bank as trustee for In or around November Abandoned structure open to
12
MASTR Asset Backed 5709 Hooper Avenue 2007 through in or about unauthorized entry and other
Securities Trust 2006-N C2 September 2009. substandard conditions.
13
9308 South Main
In or around December Abandoned structure open to
Street
Through Certificates, Series July 2008. substandard conditions.
2006-BC4
14
15
Structured Asset Securities In or around December
12745 North De
2007 through in or about
among others, lack of require
Through Certificates, 2006-
Santis A venue
April2009.
maintenance to building, structure
EQI
and premises.
U.S. Bank as trustee for Bear
In or around December Substandard conditions including,
Stearns Asset Backed Securities 7002 Hazeltine
I LLC, Asset Backed Securities, Avenue
2007 through in or about among others, (A) lack of hot
Series 2005-AC9
April2009. water and (B) leaking water.
16
17
18
19
20
U.S. Bank as trustee for In or around December
MASTR Asset Backed
15430 West
among others, (A) illegal
Securities Trust 2006-N C3
Parthenia Street
September 2009.
occupancy and (B) unpermitted
construction.
21
22
U.S. Bank as trustee for CSAB In or around January 2008
Mortgage Backed Pass-Through 223 West 90th Street through in or about July
among others, (A) defective
foundation vent screening and (B)
Certificates, 2006-2 2009.
damaged deck surface material.
23
24
U.S. Bank as trustee for In or around February
MASTR Asset Securities Trust
1408 South
among others, (A) exposed
2007-HEI
Burlington Avenue
June 2010.
wiring and (B) defective, unsafe
and inoperative plumbing system.
25
26
27
28
41
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
DEFENDANT
Citigroup Mortgage Loan Trust,
Inc., Mortgage Pass-Through
Certificates, Series 2007-AR2
U.S. Bank as trustee for JPALT
2006-5
JPMorgan Investment Bank,
JPMMAC 2005-FLDI
Loan Trust, 2006-BNC3
Corporation Trust 2005-WF3
U.S. Bank as trustee for First
Franklin Mortgage Loan Trust
2006-FF12
Structured Investment Loan
Trust 2006-BNC2
U.S. Bank as trustee for SG
Mortgage Securities Asset
2006-FRE2
PROPERTY PERIOD OF
ADDRESS OWNERSHIP
In or around February
5955 North Corbin
Avenue
March2009.
602 North Wilton
Place
April2010.
12806 West Oxnard
Street
January 201 t.
In or around March 2008
531 West 48th Street through in or about
February 2009.
732 West 97th Street through in or about
November 2009.
19525 West Bassett
Street
through in or about
December 2008.
716 South Bonnie
Brae
through in or about
September 2009
In or around Apri12008
517 West 79th Street through in or around April
2011.
1653 South 5th
In or around April2008
Avenue
through in or about
September 2009.
42
COMPLAINT
UNLAWFUL CONDITIONS
MAINTAINED BY
DEFENDANT
Abandoned structure open to
unauthorized entry and other
substandard conditions.
among others, (A) unapproved
security bars obstructing
emergency egress and (B) lack of
required water heater strapping
and anchorage.
exit door latch and (B)
unapproved unit.
condition and (B) buckled, split,
decayed exterior walls.
unauthorized entry and other
among others, (A) excessive and
overgrown vegetation on the
premises and (B) rubbish,
garbage, trash and debris on the
premises.
among others, (A) unpermitted
electrical work and (B)
deteriorated and falling, water
damaged ceiling plaster.
among others, (A) exposed
wiring and (B) damp room
conditions.
Substandard conditions including.
among others, (A) chipped and
damaged plumbing fixture
surface and (B) unapproved
heating system.
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
3
Structured Asset Securities Substandard condiiions including,
Corporation Structured Asset
14646 Erwin Street
In or around April 2008 among others, (A) unpermitted
Investment Loan Trust ihrough ihe present. plumbing work and (B)
Mortgage Pass-Through unapproved unit.
4
5
Certificates, Series 2005-HE I
6
2606 North Vallejo In or around April 2008
among oihers, (A) unapproved
MASTR Asset Backed
Street through ihe present.
gas appliance venting system and
Securities Trust 2006-HE5 (B) defective, missing and
7
8 inoperable smoke detector.
Structured Assets Mortgage
In or around April 2008
Investments II Inc., Bear
401 East 83rd Street ihrough in or about June
among oihers, (A) unapproved
Stearns ALT-A Trust Mortgage
2009.
exit door latch and (B) defective
Pass-Through Certificates, and deteriorated wall covering.
9
10
11
Series 2006-3P
1422 Souih Carmona
In or around April 2008 Substandard conditions including,
Stearns Asset Backed Securities
Avenue
ihrough in or about among oihers, unpermitted
I Trust 2006-IM I October 2009. construction.
12
13
U.S. Bank as trustee for BNC l 0424 Lou Dillon
In or around April 2008 Abandoned structure open to
Mortgage Loan Trust 2006-2 Avenue
ihrough in or about unauihorized entry and oiher
October 2009. substandard conditions.
14
15
In or around April 2008 Abandoned structure open to
Lehman Brothers Structured 8047 North Louise
Asset Investment Loan Trust Avenue
ihrough in or about unauihorized entry and oiher
SAIL 2006-BNC2
February 2009. substandard conditions.
16
17
Citigroup Mortgage Loan Trust, 5700 Souih 3rd
In or around May 2008 among oihers, (A) sewage
Asset Backed Pass-Through Avenue
ihrough in or about leaking into unit and (B)
Certificates, Series 2006-AMCI
January 2010. defective, missing, and
inoperative smoke detectors.
18
19
20
Structured Asset Investment 901 West 81st Street ihrough in or about July
among oihers, (A) open waste
Loans Trust 2005-9 2009.
line and (B) missing and broken
water shut-off valve handles.
21
22
Citigroup Mortgage Loan Trust In or around May 2008
among oihers, (A) defective
Inc., Asset Backed Pass-
236 South Columbia
ihrough in or about April
plumbing trap, trap arm, and
Through Certificates, Series
Avenue
2011.
tailpiece and (B) broken,
deteriorated and missing window
2007-AHL2
glass.
23
24
25
26
27
28
43
.
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
3
4313 South Crocker In or around June 2008
among others, (A) maintaining a
MASTR Asset Backed
Street through the present.
nuisance condition and (B) lack
Securities Trust 2007-HEI of required maintenance of
building, structure, and premises.
4
5
6300 East Monterey
In or around June 2008 Abandoned structure open to
Structured Investment Loan
Road
through in or about June unauthorized entry and other
Trust, 2006-2 2009. substandard conditions.
6
7
8
U.S. Bank as trustee for CSAB
6321 South Hoover
In or around June 2008 among others, (A) use of
Mortgage Backed Pass-Through
Street
through in or about May extension cords for permanent
Certificates, Series 2006-3 2010. wiring and (B) structurally
9
10
unsound and deteriorated fence.
U.S. Bank as trustee for In or around June 2008 Abandoned structure open to
MASTR Asset Backed 621 East 83rd Street through in or about July unauthorized entry and other
11
Securities Trust 2006-HES 2009. substandard conditions.
12
U.S. Bank as trustee for In or around June 2008
8116 North Laramie
through in or about March
among others, improperly
Loan Trust, 2005-HE3
Avenue
2009.
operated and maintained
swimming pool with unclean
13
14
15
water.
8312 South San
In or around June 2008 among others, (A) unapproved
Pedro Street
through in or about unit and (B) unapproved
Loan Trust, 2006-BNC2 September 2009. conversion of garage to dwelling
16
17
space.
In or around July 2008 Abandoned structure open to
Franklin Financial Loan Trust, 13521 North Norris
Mortgage Pass-Through Avenue
through in or about April unauthorized entry and other
Certificates, Series 2006-FF2
18
19
Substandard conditions including.
Lehman Brothers Structured 419 West !03rd
among others, (A) hazardous
Asset Investment Loan Trust Street
2009.
electrical wiring and (B)
SAIL2006-3 unapproved occupancy.
20
21
22
U.S. Bank as trustee for Asset
Substandard conditions including, .
Backed Securities Corporation
In or around July 2008 among others, (A) unapproved
Home Equity Loan Trust,
837 West 50th Street through in or about May unit and (B) unapproved
Series AMQ 2006-HE7
2009. conversion of garage to dwelling
space.
23
24
219 North Grand
Citigroup Mortgage Loan Trust
Avenue
2007-AMC2 February 2009. substandard conditions.
25
26
27
28
44
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
3
In or around August 2008 Abandoned structure open to
JPMAC 2006-H3
835 East I 09th Street through in or about April unauthorized entry and other
4
5
Lehman Brothers Structured 145 South Dacotah
through in or about
Asset Investment Loan Trust Street
September 2010.
constrnction and (B) unpermitted
SAIL2005-6 plumbing work.
6
7
among others, (A) inoperative,
Lehman Brothers Structured 1917 West73rd
defective and unapproved
Asset Securities Corporation Street
2009.
electrical receptacles and (B)
SASCO 2006-BC6 buckled, split and decayed
exterior walls.
8
9
10
11
U.S. Bank as trustee for JP In or around September
among others, (A) inadequate
Morgan Alternative Loan Trust
183 09 West Keswick
pool enclosure and (B)
2006-A6
Street
June 2010.
accumulated debris, dead organic
matter, garbage, rat harborages,
12
13
stagnant water and combustible
14
materials.
In or around September Abandoned structure open to
Backed Pass-Through 13240 West Aztec
Certificates, Series RFC 2007- Street
HE!
March2009. substandard conditions.
15
16
3503 South Cimarron
Substandard conditions including
JPMorgan Acquisition 2008 through in the
Corporation 2005-FREl
Street
present.
lack of approved water supply.
17
18
19
U.S. Bank as trustee for LXS
2129 Scott A venue 2008 through in or about
required structural support and
2007-4N Trust Fund
June2009.
(B) lack of required frre
separation between garage and
20
21
dwelling.
Lehman Brothers Structured 2860 South Holt
Asset Securities Corporation Avenue
June2009.
. required off-street parking and
SASCO 2007-BNCl (B) unpermitted construction.
22
23
U.S. Bank as trustee for In or around September
2518 East Chelsea
Corporation Trust 2007-EQl
Street
November 2009.
conditions and (B) loose
plumbing fixture.
24
25
26
27
28
45
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
3
5152 North Lindley
In or around October among others, (A) improperly
MASTR Adjustable Rate 2008 through in or about operated and maintained
Mortgages Trust 2007-2
Avenue
August 2009. swimming pool with unclean
4
5
6
water and (B) accumulated
rubbish, garbage, and debris.
4915 South 2nd
In or around October among others, (A) hazardous
MASTR Adjustable Rate
Avenue
2008 through in or about electrical receptacles and (B)
Mortgages Trust 2007-HF2 June 2010. broken, deteriorated and missing
7
8
window glass.
9
U.S. Bank as trustee for In or around October among others, (A) decayed, dry-
10
Structured Asset Securities 216 West 47th Street 2008 through in or about rotted and termite-damaged wood
Corporation Trust 2007-GEL2 December 2009. and (B) damaged and missing
11
electrical conduit.
Structured Asset Securities In or around November Abandoned structure open to
Corporation Mortgage Pass- 146 East 89th Street 2008 through in or about unauthorized entry and other
12
Through Certificates, Series February 20 I 0. substandard conditions.
2006-BC5
13
1651 West Gage
In or around November among others, (A) missing
MASTR Asset Backed
Avenue
2008 through in or about electrical receptacle covers and
Securities Trust 2006-HE4 April2011. (B) defective and deteriorated
14
15
16
wall covering.
U.S. Bank as trustee fur Asset
In or around November Abandoned structure open to
Backed Securities Corporation 3029 North Eva
Home Equity Loan Trust, Terrace
Series MO 2006-HE6
September 2009. substandard conditions.
17
18
Adjustable Rate Mortgage Trust
12739 North Bradley In or around November among others, (A) defective and
2007-1
Avenue 2008 through the present. improperly installed lighting
fixtures and (B) open waste line.
19
20
U.S. Bank as trustee for In or around November
Adjustable Rate Mortgage Trust
715 South Saint
2008 through in or around
among others, (A) deteriorated
2007-3
Louis Street
May 2011.
roofing material and (B) broken
stairs at rear of building.
21
22
23
9200 North Haddon
In or around November among others, (A) unapproved
Inc., Asset Backed Pass-
Avenue
2008 through in or about conversion of garage to dwelling
Through Certificates, Series July2009. space and (B) unapproved
24
25
2007-AMC4 occupancy.
U.S. Bank as trustee for Bane
[sic] of America Funding
2803 South Victoria
In or around November
Corporation Mortgage Pass- 2008 through in or about
Avenue
August 2009.
among others, excessive and
2006-H
.
overgrown vegetation .
26
27
28
46
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
Stearns ARM Trust, Mortgage 6118 West Homer
In or around November among others, (A) damp room
Pass-Through Certificates, Street
2008 through in or about condition and (B) inoperative,
Series 2005-1
February 20 I 0. defective and unapproved
electrical receptacles.
3
4
5
Structured Asset Securities In or around December
Corporation Structured Asset 1159 East 33rd Street 2008 through in or about
Investment Loan Trust, Series May2010.
condition and (B) exposed
2006-BC4
wiring.
6
7
8 Substandard conditions including,
527 South Bernal
unsanitary deteriorated floor
Loan Trust, 2006-3
Avenue
March 2010.
covering and (B) chipped and
damaged plumbing fixture
9
10
surface.
U.S. Bank as trustee for Terwin
Mortgage Trust 2006-3, Asset 4507 West Rosewood
In or around January 2009 among others, (A) amp room
Backed Certificates, Series Avenue
through in or about condition and (B) unsafe and
2006-3
December 2009. unsanitary deteriorated floor
covering.
11
12
13
6742 North Beck
In or around January 2009 among others, (A) defective,
Avenue
through in or about damaged, broken, and inoperative
Loan Trust, 2006-1 November 20 I 0 .. windows and (B) water leak at
roof.
14
15
Citigroup Mortgage Loan Trust In or around January 2009 among others, (A) broken,
16
Inc., Asset Backed Pass- 847 West 41st Drive through in or about May deteriorated and missing window
Through Certificates, Series 2010. glass and (B) loose plumbing
17
2007-AMC4 fixture.
18
U.S. Bank as trustee for In or around January 2009
MASTR Asset Backed
11505 North Fellows
through in or about
Securities Trust 2007-WMCI
Avenue
October 2009.
construction and (B) unapproved
conversion of garage to dwelling
19
20
space.
21
among others, (A) decayed, dry-
Structured Asset Investment 653 West 99th Street
2009 through the present.
rotted and termite-damaged wood
Loan Trust 2005-3 and (B) lack of operable
22
23 emergency egress doors.
U.S. Bank as trustee for RAMP 1512 East 106th
In or around February among others, (A) unsafe or
2006-NC2 Street
2009 through in or around unsanitary accumulation of debris
September 2009. and (B) decayed, dry rotted,
24
25
termite damage wood
26
27
28
47
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
3
Substandard Cl)nditions including,
U.S. Bank as trustee for JP
1261 North Island In or around February
Morgan Acquisition
Avenue 2009 through the present
required over current protection
Corporation 2005-FRE 1 and (B) defective, missing, and
inoperable smoke detectors.
4
5
10334 South Juniper
In or around April2008 Abandoned structure open to
Street
February 2009. substandard conditions.
6
7
20552 West Acre
In or around April 2009 substandard conditions including,
Franklin Mortgage Loan Trust
Street
through in or about April among others, (A) accumulated
2006-FF14 2010. rubbish, trash and debris and (B)
8
9
open storage.
10
2008 East
In or around April 2009 among others, (A) failure to
MASTR Asset Securities Trust
Hollenbeck Drive
through in or about maintain required bathroom
2006-WMC3 January 2010. ventilation and (B) unapproved
gas appliance venting system.
11
12
In or around April 2009
among others, (A) extensive
W AMU Mortgage Pass- 737 North Heliotrope
plumbing leaks in the crawl space
Through Certificate for Drive
2010.
under the building and (B)
WMALT2007-0A2 defective and missing insect
screens.
13
14
15
U.S. Bank as trustee for BNC 525 West !11th
In or around May 2009 among others, (A) lack of
Mortgage Loan Trust 2006-2 Street
through in or about maintenance of building and
November 20 l 0. premises and (B) unpermitted
16
17
construction.
MASTR Asset Backed
3152 East Folsom
through in or around June
among others, (A) accumulated
Securities Trust 2007-WMC!
Street
2012.
rubbish, trash and debris and (B)
open storage.
Corporation Structured Asset 8755 North Matilija
In or around May 2009 among others, (A) improperly
Investment Loan Trust Avenue
through in or about operated and maintained
Mortgage Pass Through
December 2010. swimming pool with unclean
water and (B) accumulated
rubbish, trash and debris.
18
19
20
21
22
23
Structured Asset Investment In or around May 2009
among others, (A) missing
Loan Trust Mortgage Pass- 421 West 56th Street through in or about March
handrail or guardrail and (B)
Through Certificates, Series 2011.
defective electrical service.
2006-2
24
25
26
27
28
48
COMPLAINT
1
2
3
4
5
6
7
8
9
10
1 1
1 2
1 3
1 4
1 5
1 6
1 7
I 8
I 9
2 0
2 1
2 2
2 3
2 4
2 5
2 6
2 7
2 8
DEFENDANT
Loan Trust, 2006-3
U.S. Bank as trustee for CSFB
ARMT2006-3
Loan Trust, 2006-3
W AMU Mortgage Pass-
Through Certificates for
WMALT 2007-0A3
Inc., Mortgage Pass-Through,
Series 2007-AR2
MASTR Asset Backed
Securities Trust 2006-H4
U.S. Bank as trustee for BAFC
2007-A
W AMU Mortgage Pass-
Through Certificate for
WMALT 2006-AR4
MASTR Asset Backed
Securities Trust 2006-H4
PERIOD OF
UNLAWFUL CONDITIONS
PROPERTY
MAINTAINED BY
ADDRESS OWNERSHIP
DEFENDANT
8923 South Menlo In or around May 2009 among others, (A) hazardous
Avenue through the present. electrical wiring and (B)
hazardous plumbing.
In or around May 2009 substandard conditions including,
5910 East Echo
through in or about among others, (A) unapproved
Street
January 2010. electrical work and (B)
unapproved plumbing work.
8144 Nortb Lorna
through in or about March among others, (A) accumulated
Verde Avenue
2010. rubbish, trash and debris and (B)
open stor'!,ge.
In or around June 2009 among others, (A) defective,
1435 East 48th Street through in or about May missing and inoperable smoke
2010. detectors and (B) unapproved gas
appliance venting_system.
9809 West Melinda
In or around June 2009
substandard conditions including
Drive (A) failure to maintain pool water
through the present
clarity and (B) pool enclosure not
constructed to code.
among others, (A) open waste
514 West 59th Street line and (B) defective and
through the present.
improperly installed lighting
fixtures.
1768 South
through in or about July unauthorized entry and other
Hayworth A venue
In or around August 2009 among others, (A) unsafe and
514 West 62nd Street through in or around April unsanitary accumulation of debris
2012. and (B) defective foundation vent
screenin_g,
In or around August 2009 among others, (A) lack of
742 East 84th Street through in or about July maintenance of building and
2010. premises and (B) overgrown
vegetation.
1349 West 49th In or around August 2009 among others, (A) defective and
Street through the present. deteriorated drywall and (B) lack
of required landscape irrigation.
49
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
3
U.S. Bank as trustee for LXS 5311 South 7th In or around September
2006-1 ON Trust Fund Avenue 2009 through the present.
occupancy and (B) lack of
required maintenance of building
and premises.
4
5
U.S. Bank as trustee for Bear among others, (A) failure to
6
Stearns ARM Trust Mortgage
255 East 49th Street
In or around September provide access for inspection and
Pass-Through Certificates, 2009 through the present. (B) lack of required 7
Series 2005-2006 weatherproofmg of exposed
8 surfuces.
U.S. Bank as trustee for SARM 7235 Nortb Katherine
In or around October substandard conditions including,
2005-3 Avenue
2009 through in or about among others, excessive and
September 2010. overgrown vegetation on the
9
10
premises.
U.S. Bank as trustee for CMLTI In or around October
Asset Backed Pass-Through
3732 South Ruthelen
among others, (A) hazardous
Certificates, Series 2007-AMC3
Street
March 2011.
electrical wiring and (B)
hazardous plumbing.
11
12
13
In or around October
Lebman XS Trust Mortgage 17000 West Cantara
2009 through_ in or about
among others, improperly
Pass-Through Certificates, Street
June 2010.
operated and maintained
Series 2005-9N swimming pool with unclean
14
15
water.
U.S. Bank as trustee for In or around October
MASTR Asset Backed
4416 South 6th
Securities Trust 2006-HE4
Avenue
May 2011.
under floor supports and (B)
damp room condition.
16
17
18
19
U.S. Bank as trustee for GSAA 1645 West 89th In or around November among others, (A) open waste
Home Equity Trust2007-l Street 2009 through the present. line and (B) defective and
20
deteriorated wall covering.
U.S. Bank as trustee for LXS 4621 West Pickford In or around November
2007-?N Street 2009 through the present
(B) unsafe and unsanitary
21
22
deteriorated floor covering.
23
24
U.S. Bank as trustee for Home 13147 Nortb In or around November among others, (A) rubbish, trash
Equity Asset Trust 2005-9 Gladstone Avenue 2009 through the present. and debris on the premises and
25
(B) open storage of inoperable
vehicles.
26
27
28
50
COMPLAINT
1
PERIOD OF
UNLAWFUL CONDITIONS
PROPERTY
MAINTAINED BY DEFENDANT
ADDRESS OWNERSHIP
DEFENDANT
2
3
3990 South
In or around November among others, (A) deteriorated
U.S. Bank as trustee for LSX
2009 through in or about roofmg material and (B)
2006-2N Trust Fund Nonnandie Avenue
October 2010. defective, missing and
inoperative smoke detectors.
4
5
U.S. Bank as trustee for Terwin
3514 South 7th
In or around November among others, (A) defective and
Mortgage Trust 2006-7, Asset 2009 through in or about deteriorated drywall and (B)
Avenue
November 2010. defective, damaged, broken, and Backed Certificates
6
7
inoperative doors.
In or around December
U.S. Bank as trustee for 1126 South Lake
among others, (A) open and
Harborview 2006-1 Trust Fund Street
April2012.
abandoned gas piping outlet and
(B) exposed wiring.
8
9
10
among others, (A) defective,
1
1027 North Mark In or around December damaged, broken and inoperative
Street 2009 through the present. doors and (B) broken,
2
deteriorated, and missing window
1
1
glass.
3
Backed Securities Corporation 3971 North Murietta In or around January 20 I 0
unauthorized entry and other 4
Home Equity Loan Trust, Avenue through the present.
5
Series MO 2006-HE6
1
I
I
6
U.S. Bank as trustee for MLMI
786 East 41st Street unsanitary deteriorated floor
Trust Series 2006-RM2 20 I 0 through the present.
covering and (B) defective
7
plumbing tra_])_ arm, and taQEiece.
I
I
8
In or around March 20 I 0
909 South Fedora
9
unit and (B) unpennitted 2006-WFHE4
I
I
plmnbii!g work.
0
2
1234 South In or around April 20 l 0
1
. 2007-16N Trust Fund Manhattan Place through the present.
unit and (B) unpennitted
2
construction.
2
2
3
In or around April2010 Abandoned structure open to
Backed Funding Corporation 2132 West Fargo
through in or around May unauthorized entry and other
Asset Backed Certificates, Street
2012. substandard conditions. 4
Series 2007-WMCl
2
2
5
In or around May 20 I 0
U.S. Bank as trustee for LXS 1618 East 27th
among others, unpennitted and
6 2007-2N Street through the present
unapproved construction.
2
2
2 7
2 8
51
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
.
U.S. Bank as trustee for LXS 1720 South Union
through in or about March
2006-12N Avenue
2011.
foundation vent screening and (B)
unapproved heating system.
3
4
5
1800 West 4th Street
In or around May 20 I 0 among others, (A) vermin
Harborview 2006-1 Trust Fund through the present. infestation and (B) hazardous
6
7 electrical receptacles.
U.S. Bank as trustee for SARM 1385 West22nd
through in or around
conversion of storage shed
2005-23 Street
January 2012.
without required permits and (B)
unapproved construction of roof
cover without required permits.
8
9
10
I 008 North Mark In or around August 2010
(A) unapproved construction
Steams Asset Backed Securities
without the required permits and
I Trust 2006-IMI (B) failure to maintain and repair
11
12
existing building.
13 Abandoned structure with
16840 West
In or around August 20 I 0 substandard conditions including
Mortgage Pass-Through
McCormick Street
through in or around (A) failure to maintain pool water
Certificates, Series 2006-AR3 November 20 II. clarity and (B) rubbish, garbage,
14
15
trash and debris on property.
16
327 112 West 70th In or around August 20 I 0 unsafe or inoperative plumbing
Street through the present. system and (B) buckled, split or
17
decayed exterior walls, Jack of
18
required weatherproofmg.
19 substandard conditions including,
U.S. Bank as trustee for Merrill 23830 West
In or around August 20 I 0
among others, (A) rubbish,
Lynch Mortgage Investors Vanowen Street
garbage, trash and debris on the
Trust, Series 2010-NPI premises and (B) excessive or
20
21
overgrown vegetation on
premises.
U.S. Bank as trustee for JP In or around September
Morgan Mortgage Acquisition
7035 North Claire
Trust 2006-NC I
Avenue
September 20 II.
occupancy and (B) unpermitted
construction.
22
23
24
U.S. Bank as trustee for 529 North Saint
In or around September among others, (A) defective,
MARM2007-3 Louis Street
20 I 0 through in or around damaged, broken and inoperative
June 2012. windows and (B) vermin
infestation.
25
26
27
28
52
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
3
U.S. Bank as trustee for Credit
7240 North Irondale
Suisse First Boston CSFB 20 II through in or around
2005-2
Avenue
June 2011.
unauthorized entry.
4
5
6
U.S. Bank as trustee for I 1515 North Balboa In or around September among others, (A) unapproved
Servertis Fund I Trust 2009-2 Boulevard 2010 through in or around construction without required
7
Certificates, Series 2009-2 November 2011. permits and (B) overgrown or
excessive vegetation.
U.S. Bank as trustee for In or around October
MASTR Alternative Loan Trust 1219 East 51st Street 2010 through in or around
2003-7 September 20 II.
construction and (B) open storage
of auto parts in a residential zone.
8
9
12983 West In or around October Substandard conditions including
Washington Mutual Mortgage
Pass-Through Certificates
Montague Street 20 I 0 through in or around unapproved use of single family
WMALT Series 2006-AR9
May2012. dwelling as duplex in Rl zone.
10
11
12
U.S. Bank as trustee for 11536 West
20 I 0 through in or around
defective, and unapproved
MARM2007-3 Cumpston Street
January 2012.
electrical receptacles and (B)
unapproved conversion of garage
13
14
to dwelling space.
15
12771 West Filmore
20 I 0 through in or round
Street
May2012.
occupancy and (B) unapproved
use of a trailer in a residential
16
17
zone.
13984 West Terra In or around January 20 II (A} unapproved construction and
Loan Trust 2006-BNC3
Bella Street through the present. (B) rubbish, garbage, trash or
debris on premises.
18
19
20
21
U.S. Bank as trustee for CSAB among others, (A) inoperative,
Mortgage-Backed Pass- 829 North Sycamore In or around March 20 II defective, unapproved electrical
22
Through Certificates, Series Avenue through the present. receptacles and (B) failure to
2006-3 obtain the required permits and
23
certificate of occupancy.
1152 North Wilton In or around March 20 II damaged, broken, inoperative
Loan Trust, 2005-9
Place through the present. doors or windows and (B)
defective, unsafe or inoperative
24
25
26
plumbing system.
27
28
53
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
DEFENDANT
2007 -16N Trust Fund
Harborview 2005-16 Trust
Fund
U.S. Bank as trustee for BNC
Mortgage Loan Trust 2007 -I,
U.S. Bank as trustee for Bane
[sic] of America Funding
2007-D
2006-BC2
MASTR Asset Backed
Securities Trust 2006-NC3
Certificates, Series 2006-NC3
Stearos Asset Backed
Securities, 2006-ACI
Suisse First Boston ARMT
2005-5
Inc.
2006-1 ON Trust Fund
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2339 South Lucerne In or around March 20 II
aroong others, (A) use of
Avenue through the present.
extension cords for permanent
wiring and (B) defective
foundation vent screening.
In or around March 20 II
among others, (A) defective and
damaged leaking faucets and (B)
decayed, dry rotted and termite
damaged wood.
3986 South Denker In or around March 2011 aroong others, (A) hazardous
Avenue through the present. electrical wiring and (B)
hazardous plumbing.
828 West I 08th
substandard conditions including
In or around April (A) excessive or overgrown
Street
20 II through the present. vegetation on premises and (B)
rubbish, garbage, trash, or debris
on premises.
1190 1/2 East 47th In or around April 20 II
among others, (A) decayed, dry-
rotted, termite damaged wood
and (B) unapproved gas appliance
venting system.
13483 West Brownell
Street
through in or around aroong others, (A) Failure to
February 2012. maintain fencing and (B) failure
to maintain and repair building.
213 North Windsor In or around May
Boulevard 20 II through the present.
garage conversion and (C)
unapproved plumbing work
without the required permits.
In or around May 20 II
unpermitted and unapproved
construction.
In or around May 20 II
13720 North
through in or around
(A) unapproved conversion
Gladstone Avenue
February 2012.
without the required permits and
(B) illegal occupancy.
1257 South Plymouth In or around June 20 II
aroong others, (A) damp room
Boulevard through the present.
conditions and (B) defective,
damaged, and inoperative doors
and windows.
54
COMPLAINT
1
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
2
3
Citigroup Mortgage Trust Inc.
1525 East 0 Street
In or around June 2011 among others, (A) construction
Asset Backed Pass-Through
through the present. without permits and (B) failure to
4
5
Certificates, Series 2007-AMCl
maintain and repair building.
Suisse First Boston Mortgage
1517 West 228th In or around June 2011 (A) work performed without
Securities Corp. Home Equity
Street through the present. required permits and (B) illegal
Pass-Through Certificates,
Series 2006-8
occupancy.
6
7
U.S. Bank as trustee for C-
among others, (A) failure to
8
BASS Mortgage Loan Asset
1227 East 20th Street
In or around July 2011 maintain and repair plumbing
through the present. fixtures and (B) failure to
9
2007-CBl
maintain building in safe and
sanitary condition.
10
among others, (A) failure to
11
U.S. Bank as trustee for 5630 South In or around July 2011 maintain the required frre-
CBASS 2006-SCl Broadway through the present. resistive construction and (B)
12
lack of required combustion air
openings.
13
U.S. Bank as trustee for CSFB
among others, (A) buckled, split
Home Equity Pass-Through
4228 East Abner In or around August 2011 or decayed exterior walls, lack of
Street through the present. required weatherproofing and (B)
Certificates, Series 2005-FIXI
unsanitary accumulation of
14
15
16 debris, rubbish, or similar matter.
Suisse First Boston Mortgage
Securities Corp. Home Equity
12731 West Rajah
20 II through in or around
conversion of garage without
Pass-Through Certificates,
Street
March2012.
required permits and (B) failure
to provide or maintain required
Series 2006-8
off street parking.
17
18
19
Specialty Underwriting and
7650 North Oak Park
(A) rubbish, garbage, trash or
Residential Finance Trust,
Avenue
20 II through in or around
debris on premises and (B) open
Mortgage Loan Asset Backed May2012.
Certificates, Series 2006-BC4
storage within the required yards.
20
21
846 West Santa Cruz
In or around October substandard conditions including,
Street
2011 through in or around among others, (A) rubbish,
Mortgages Trust, Series 2007 -I May2012 garbage, trash and debris on the
22
23
premises and (B) graffiti.
24
In or around October
among others, (A) electrical work
CitiGroup Mortgage Loan Trust 1245 East 43rd Street
20 II through the present.
done without permit or approval
2007-AMC2 and (B) unsafe/unsanitary
deteriorated floor covering.
25
26
27
28
55
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
PROPERTY PERIOD OF
UNLAWFUL CONDITIONS
DEFENDANT
ADDRESS OWNERSHIP
MAINTAINED BY
DEFENDANT
BancCap Asset Securitization
In or around October defective, unapproved electrical
Issuance Corporation, Mortgage 224 West 71 st Street
20 II througb the present. receptacles and (B) defective,
Loan Asset Backed Certificates,
improperly installed lighting
Series 2006-1
fixtures.
1612 West 24th In or around November Abandoned property open to
Citigroup Mortgage Loan Trust,
2005-HE3
Street 2011 througb the present. unauthorized entry.
U.S. Bank as trustee for 1920 South
2011 througb in or around
WMALT 2007-0AS Sherbourne Drive
May2012.
failure to maintain fencing.
5753 1/2 South 8th In or around November among others, (A) exposed
Avenue 20 11 througb the present. wiring and (B) deteriorated
roofmg material.
U.S. Bank as trustee for WaMu
1412 South 4th In or around November
among others, (A) electrical work
Avenue 2011 througb the present.
done without permit or approval
Certificates, Series 2007-HYS and (B) construction without
permits or approvals.
In or around December unsanitary deteriorated floor
2007 -16N Trust Fund 2011 througb the present. covering and (B) failure to
maintain existing structure in safe
and sanitary condition.
U.S. Bank as trustee for RAMP 9206 South Hoover In or around December among others, (A) defective and
2006-EFC2 Street 20 11 througb the present. damaged leaking faucets and
valves and (B) vermin infestation.
U.S. Bank as trustee for SAIL 411 0 Compton In or around January 2012
2005-5 Avenue througb the present
(B) defective, improperly
installed lighting fixtures.
101. Local enforcement agencies conduct the majority of their investigations in response
to complaints and necessarily depend upon residents who are aware of and have the resources to
assert their rights. The violations of federal, state and municipal law perpetrated by DEFENDANT
U.S. Bank National Association and reported to these agencies are described above. These represent
56
COMPLAINT
1 a fraction of the actual number of Foreclosed Properties at which violations occurred or continue to
2 occur.
3 I 02. The photographs in the paragraphs below depict conditions at vacant Foreclosed
4 Properties. These photographs illustrate some ofthe unlawful nuisance conditions referenced above.
5 I 03. The photographs below depict the deterioration of a property located at I 03 34 South
6 Juniper Street. The first photograph was taken by an LADBS Inspector in or around July 2008 and
7 shows graffiti and signs of vagrant or perhaps gang activity at the property. Subsequently, in or
8 around October 2008, a fire occurred at the property. The second and third photographs were taken
9 by an LADBS Inspector in or around December 2008 and January 2009, respectively, and show the
I 0 hazardous and nuisance conditions that existed months after the fire:
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
57
COMPLAINT
1
2
3
4
5
6
7
8
9
10
11
104. The photograph below was taken by an LADBS Inspector in or around October 2008
12
and shows fire damage at another property, located at 219 North Grand Avenue:
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
58
COMPLAINT
1 105. The photograph below was taken by an LADBS Inspector in or around January 2009
2 and shows rubbish and debris accumulated in the yard of the property located at 13240 West Aztec
3
4
5
6
7
8
9
10
11
12
13
14
Street:
15 106. The photograph below was taken by an LADBS Inspector in or around February 2009
16 and shows graffiti on the exterior of the property located at 148 East 79th Street:
17
18
19
20
21
22
23
24
25
26
27
28
59
COMPLAINT
1 107. The photograph below was taken by an LADBS Inspector in or around February 2009
2 and shows stagnant water collected in the swimming pool of the property located at 8047 North
3 Louise Avenue:
4
5
6
7
8
9
10
11
12
13
14
15 108. The photograph below was taken by an LADBS Inspector in. or around November
16 2009 and shows an open rear entryway at the property located at 148 East 89th Street:
17
18
19
20
21
22
23
24
25
26
27
28
60
COMPLAINT
I 109. The photograph below was taken by an LADBS Inspector in or around May 2010 and
2 shows stagnant water in the swimming pool at 1768 South Hayworth Avenue:
3
4
5
6
7
8
9
10
II
12
13
14 110. The photograph below was taken by an LADBS Inspector in or around November
15 20 I 0 and shows exterior graffiti, accumulated debris and an open window at the property located at
16 2132 Fargo Street:
17
18
19
20
21
22
23
24
25
26
27
28
61
COMPLAINT
1 Ill. The photographs in the paragraphs below depict conditions at occupied Foreclosed
2 Properties. These photographs illustrate some of the many Building, Plumbing, Electrical,
3 Mechanical and Health and Safety Code violations and hazardous conditions that DEFENDANT
4 U.S. Bank National Association permitted to exist at these locations.
5 112. The photograph below was taken by an LAHD Inspector in or around December 2009
6 and illustrates the deteriorated condition of the flooring at 421 West 56th Street:
7
8
9
10
II
12
13
14
IS
16
17
18
19
20
21
22
23
24
25
26
27
28
II
II
II
II
II
II
II
II
II
II
II
62
COMPLAINT
I 113. The photograph below was taken by an LAHD Inspector in or around April2010 and
2 shows the substandard condition of the ceiling in the master bedroom of the property located at
3 1645 West 89th Street:
.4
5
6
7
8
9
10
II
12
13
14
IS 114. The photograph below was taken by an LAHD Inspector in or around May 2010 and
16 shows improperly installed and maintained lighting at 4416 South 6th A venue:
17
18
19
20
21
22
23
24
25
26
27
28
63
COMPLAINT
1 115. The photograph below depicts the unsanitary and substandard condition of the
2 kitchen sink area at 1720 South Union A venue. The photograph was taken by an LAHD Inspector in
3 or around September 2010:
4
5
6
7
8
9
10
11
12
13
14
15 116. The photograph below was taken by an LAHD Inspector in or around October 2010.
16 It shows damaged and defective drywall at the property located at 514 West 62nd Street:
17
18
19
20
21
22
23
24
25
26
27
28
64
COMPLAINT
1 117. The photograph below was taken by an LARD Inspector in or around January 2011
2 and shows an open and abandoned gas piping outlet at 1126 South Lake Street:
3
4
5
6
7
8
9
10
11
12
13
14
15 118. The photograph below was taken by an LARD Investigator in or around April27,
16 2011 and shows cracked and damaged exterior stairway boards at 4621 West Pickford Street:
17
18
19
20
21
22
23
24
25
26
27
28
65
COMPLAINT
1 c. DEFENDANT U.S. Bank National Association's Unfair and Deceptive Practices to Vacate
2 Properties
3 119. To circumvent the restrictions placed on evicting tenants under local, state and federal
4 law, DEFENDANT U.S. Bank National Association has resorted to unfair and fraudulent means to
5 cause tenants, many of whom were low income, minority, and legally unsophisticated individuals
6 and families, to vacate a substantial number of rental units at the Foreclosed Properties.
7 120. Using intermediaries such as attorneys and realtors, DEFENDANT U.S. Bank
8 National Association has engaged in niunerous deceptive practices and dishonest tactics, including,
9 but not limited to:
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
A. Serving upon tenants Notices to Quit containing false and misleading representations
that tenants must vacate their units and failing to disclose material information;
B. Failing to disclose material information to tenants regarding their tenancies;
C. Serving notices upon tenants purporting to be Occupant Questionnaires or Requests
for Information and Access to the Premises containing unreasonable and burdensome
_demands of tenants;
D. Demanding tenants accept "Cash for Keys" offers and vacate their homes on
extremely short notice in exchange for small sums of money, typically inadequate for
tenants to find suitable alternative housing or even cover basic moving costs;
E. Causing or allowing utilities to be shut off, such as water and gas, for extended
periods oftime;
F. Defrauding and attempting to defraud tenants of the right to relocation assistance to
which they were entitled under the RSO;
G. Charging rent in excess of the amounts allowed under the RSO and REAP;
H. Demanding rent, collecting rent, issuing notices of rent increases, and issuing three-
day notices to pay rent or quit for substandard rental units;
I. Maliciously threatening to commence or commencing groundless unlawful detainer
actions against tenants;
66
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
J. Routinely and improperly proceeding with evictions of nonexistent owner occupants
that had the result of displacing the true occupants without proper notice; and
K. Otherwise threatening, harassing and intimidating tenants.
121. The following chart details twenty one (21) examples of Foreclosed Properties where,
during the period DEFENDANT U.S. Bank National Association owned of each of the properties
below, DEFENDANT U.S. Bank National Association caused or permitted the following unfair and
deceptive acts, among others to occur:
DEFENDANT
PROPERTY PERIOD OF
UNFAffiACT
DATE OF
ADDRESS OWNERSHIP ACT
Structured Asset In or around April
Securities Corporation 221 South Reno 2008 through in Three/Thirty Day Notice to Quit In or around
Mortgage Pass-Through Street or about served upon tenant. May2008.
Certificates 2006-EQl November 2009
In or around April
U.S. Bank as trustee for 3606 South 2008 through in Three/Thirty Day Notice to Quit In or around
Doe 6 Trinity Street or about served upon tenant. May2008.
December 2008
U.S. Bank as trustee for 2834 West In or around April
C-Bass Mortgage Loan Martin Luther 2008 through in Three/Thirty Day Notice to Quit In or around
Asset Backed Certificates, King Jr. or about January served upon tenant. May2008.
Series 2006-CB4 Boulevard 2009
U.S. Bank as trustee for In or around May
Structured Asset 3915 Walton 2008 through in Ninety Day Notice to Quit In or around
Investment Loan Trust Avenue or about October served upon tenant. July 2008.
2005-8 2009
In or around May Ninety Day Notice to Quit
Lehman Brothers
Securitization Name-
7819 South 2008 through in served upon tenant. Groundless In or around
Structured Asset
Hoover Street or about June action for Unlawful Detainer June 2008.
Investment Loan Trust
2009 filed against tenant.
.
U.S. Bank as trustee for In or around July
In or around
MASTR Asset Backed
6061 4th Avenue
2008 through in Ninety Day Notice to Quit
September
Securities Trust 2006- or about May served upon tenant.
WMC2 2009
2008.
67
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
DEFENDANT
Structured Asset
Investment Loan Trust
2006-BNC2
Citi Mortgage Loan Trust
Inc. for Asset Backed
Pass-Through
Certificates, Series 2006-
WMCl
Lehman Brothers
Structured Asset
Securities Corporation
SASCO 2006-BC6
CMLIT 2007-AR8
Specialty Underwriting
and Residential Finance
Trust Mortgage Loan
Asset Backed Certificates,
Series 2007-BCl
Lehman Brothers
Structured Asset
Securities Corporation
SASCO 2007-BNCl
C-Bass Mortgage Loan
Asset Backed Certificates,
Series 2007-CB5
PROPERTY
ADDRESS
8312 South San
Pedro Street
2211 West 20th
Street
1917 West 73rd
Street
8953 Cayuga
Avenue
10526 Lou
Dillon A venue
2860 South Holt
Avenue
312 West Gage
Avenue
PERIOD OF
UNFAffiACT
DATE OF
OWNERSHIP ACT
In or around July
In or around
2008 through in Three/Sixty Day Notice to Quit
September
or about served upon tenant.
September 2009
2008.
In or around
August2008 In or around
Ninety Day Notice to Quit
through in or
served upon two tenants.
October
about August 2008.
2009
!nor around Three/Sixty Day Notice to Quit
In or around
August2008 served upon tenant. Groundless
September
through in or action for Unlawful detainer
about May 2009 filed against tenant.
2008.
In or around Three/Sixty Day Notice to Quit
In or around
September 2008 served upon tenant. Groundless
September
through in or action for Unlawful Detainer
about May 2009 filed against tenant.
2008.
In or around
September 2008 Multiple groundless actions for
In or around
through in or Unlawful Detainer filed against
January and
about December tenant.
November
2009
2009.
In or around Three/Sixty Day Notice to Quit
!nor around
September 2008 served upon tenant. Groundless
October
through in or action for Unlawful Detainer
2008.
about June 2009 filed against tenant.
In or around
Groundless action for Unlawful In or around
September 2008
Detainer filed against two October
through in or
tenants. 2008.
about March 2009
68
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
DEFENDANT
PROPERTY PERIOD OF
UNFAIR ACT
DATE OF
ADDRESS OWNERSHIP ACT
Citigroup Mortgage Loan
In or around
In or around
Trust Inc., Asset Backed 9200 Haddon November 2008 Sixty Day Notice to Quit served
November
Pass-Through Avenue through in or on tenant.
2008.
Certificates, Series 2007-
about July 2009
AMC4
In or around
Asset Backed Pass- 8822 Reading
January 2009
Sixty Day Notice to Quit served
In or around
Through Certificates, Avenue
through in or
upon tenant.
January
about September 2009.
Series 2006-WFHE3
2009
U.S. Bank as trustee for In or around .
In or around
C-Bass Mortgage Loan 9120 South November 2009 Notice to Quit served upon
October
Asset Backed Certificates, Vermont A venue through in or tenant.
2009.
2007-CB3 about June 20 I 0
First Franklin Mortgage !nor around
In or around
Loan Trust, Mortgage 1254 West 40th November 2009 Ninety Day Notice to Quit
February
Loan Asset Backed Place through in or served upon tenant.
Certificates, Series 2007- about April 20 I 0
2010.
1
Structured Asset
Securities Corporation,
2253 South
In or around April
Sixty/Ninety Day Notice to Quit !nor around
Bronson A venue
20 I 0 until the
served upon tenant. May2010.
Certificates, Series 2006- present
BC4
U.S. Bank as trustee for 5243
In or around July
C-Bass Mortgage Loan Blackwelder
20 I 0 through in Three/Ninety Day Notice to Quit !nor around
or about March served upon tenant. July 2010.
Certificates 2006-CB5 Street
2011
In or around
C-Bass Mortgage Loan 2326 North Alta
August 20 II until
Notice to Quit and Cash for Keys In or around
Asset Backed Certificates Street
the present
demand served upon tenant. August 20 II.
2007-CBI
In or around
LXS 2007 -16N Trust
2339 South March2011 Cash for Keys served upon In or around
Fund
Lucerne through the tenant March2012.
present.
D.
DEFENDANT U.S. BANK's Individual Liability
122. DEFENDANT U.S. Bank National Association is personally liable in an individual
capacity for the unlawful practices described above through the acts and omissions of its officers,
employees and agents on the ground that DEFENDANT U.S. BANK National Association is
69
COMPLAINT
1 personally at fault for such practices. The California rule has long been that certain statutes and
2 ordinances designed to protect the public health and safety impose a positive duty, and strict
3 liability, for failure to perform that duty. In such matters as the prevention and abatement of!ocal
4 nuisances, the law regulates by requiring a given level of conduct and imposes liability on those
5 who, regardless of intent, do not comply. A property owner is thus in violation oflocal ordinances
6 requiring the prevention and abatement of a nuisance and guilty of negligence per se simply by
7 allowing the nuisance to exist and failing to take the necessary action to prevent such an occurrence.
8 As a property owner, DEFENDANT U.S. Bank National Association has a positive duty to know the
9 conditions existing at the Foreclosed Properties, to maintain all such properties in compliance with
10 all applicable laws, and to take all actions necessary to prevent or abate any nuisance conditions at
11 such properties. DEFENDANT U.S. Bank National Association breached this duty by failing and
12 refusing to take appropriate actions to prevent or abate nuisance conditions at such properties when
13 servicers delegated under the trust documents to maintain such properties failed to do so.
14 123. DEFENDANT U.S. Bank National Association intentionally or negligently breached its
15 duty to the public because it knew or should have known that the servicers authorized to maintain
16 the Foreclosed Properties under the trust documents were and are unlikely to maintain all such
17 properties free from nuisance conditions. Although the trustee is the legal owner of the Foreclosed
18 Properties, the trust documents typically place the duty to manage, conserve, protect and operate
19 each such property upon the servicer. The obligations and liability imposed under the trust
20 documents should not, however, be confused with those imposed by law. In contrast to the liability
21 provisions of the trust documents, state and local housing and habitability laws hold property owners
22 and landlords liable for substandard and nuisance conditions.
23 124. Specifically, the trust documents generally authorize and direct the servicers to manage,
24 conserve, protect and operate each Foreclosed Property for the trustee for the benefit of each trust's
25 beneficiaries, solely for the purpose of its prompt disposition and sale; in the same manner that the
26 servicer manages, conserves, protects and operates other foreclosed property for its own account,
27 and in the same manner that a similar property in the same locality as the Foreclosed Property is
28
70
COMPLAINT
1 managed. By contrast, California Health and Safety Code and the LAMC require that every
2 building, structure, premises or portion thereof be maintained in safe and sanitary condition, good
3 repair and free from graffiti, debris, rubbish, garbage, trash, overgrown vegetation or other similar
4 material in order to safeguard life, limb, health, property and the welfare of the public.
5 125. On their face, the two duties set forth above are readily distinguishable. First, the trust
6 documents require maintenance for the benefit of the trust beneficiaries, i.e. for the preservation and,
7 to the extent possible, enhancement of the distribution payments and return on the beneficiaries'
8 investments; whereas, the code provisions seek to safeguard and enhance public welfare. Second,
9 the trust document provisions place a subjective standard on the servicer' s duty to "manage,
10 protect and operate" Foreclosed Properties requiring only that it do so in the same manner
11 (1) as it does for its own foreclosed properties and (2) as a similar property in the locality is
12 managed.
13 126. Further review of the trust documents show that the servicer is not strictly bound to its
14 duty to maintain Foreclosed Properties. Rather, the duty to maintain, or take any action with regard
15 to a Foreclosed Property, is left to the servicers "good faith business judgment." The trust
16 documents typically instruct the servicer to deposit any and all revenues received from a Foreclosed
17 Property into a segregated account from which the servicer must withdraw funds necessary for the
18 proper operation, management and maintenance of that particular Foreclosed Property including,
19 without limitation, all costs and expenses necessary to maintain that property. The trust documents
20 add that the servicer, to the extent that amounts in the segregated account for the specific Foreclosed
21 Property are insufficient for necessary property maintenance, must advance its own funds as
22 servicing advances, but only if the servicer would make such advances if the servicer owned the
23 Foreclosed Property and if such servicing advance would not constitute a nonrecoverable advance.
24 With respect to a Foreclosed Property, a "nonrecoverable advance" includes any servicing advance
25 proposed to be made that, in the good faith business judgment of the servicer, would not be
26 ultimately recoverable from liquidation proceeds on a particular Foreclosed Property. Servicers are
27 not required to continue advancing their own funds if they deem an advance to be a nonrecoverable
28
71
COMPLAINT
1 advance. Servicers typically have rules that limit their advances on Foreclosed Properties to less
2 than 50% to 60% of the current property value. The result is that where a servicer determines that
3 the cost of preventing or abating a nuisance at a particular Foreclosed Property would require a
4 nonrecoverable advance, the servicer is neither authorized or required to advance the funds or take
5 any other action to remedy the code violations.
6 127. DEFENDANT U.S. Bank National Association, as the record owner of the Foreclosed
7 Properties, is personally at fault for failing to maintain all Foreclosed Properties in compliance with
8 all applicable laws, and to take all actions necessary to prevent or abate any nuisance conditions at
9 such properties. Since the servicers are not, and never have been, fully authorized or required to do
10 so under the trust documents, and the servicer liability provisions of the trust documents are at odds
11 with state and local housing and habitability laws that hold property owners and landlords liable for
12 substandard and nuisance conditions at their properties, it falls to the trustee as the only entity that
13 can act on behalf of the trust to resolve that conflict and take the actions necessary to ensure that the
14 Foreclosed Properties are brought into code compliance. DEFENDANT U.S. Bank National
15 Association is personally at fault for intentionally or negligently failing and refusing to take action to
16 prevent and abate nuisances where the servicers are not authorized or required to do so.
FIRST CAUSE OF ACTION 17
18 Unlawful Business Acts and Practices in Violation of
20 (Against DEFENDANT in Its Individual and Representative Capacities)
21 128. PLAINTIFF incorporates paragraphs 1 through and including 127 of this Complaint
22 as if set forth fully herein.
23 A. The California Unfair Competition Law
24 J. Generally
25 129. The California Unfair Competition Law ("UCL") prohibits "unfair competition,"
26 which includes "any unlawful, unfair or fraudulent business act or practice .... "(Bus. & Prof.
27 Code, 17200.)
28
72
COMPLAINT
1 130. Because Business and Professions Code Section 17200 is written in the disjunctive, it
2 establishes three varieties of unfair competition- acts or practices which are ''unlawful," or ''unfair,"
3 or "fraudulent."
4 131. Because it contains no express intent, knowledge, or negligence requirement, the
5 UCL imposes strict liability. Nor is it necessary to show that the DEFENDANT intended to injure
6 anyone.
7 132. The UCL authorizes the City Attorney to bring a civil enforcement action against any
8 person who engages, has engaged, or proposes to engage in unfair competition. (Id, 17203.) It
9 defines "person" to include natural persons, corporations, firms, partnerships, joint stock companies,
10 associations and other organizations of persons. (!d., 17201.)
11 133: The UCL has a four-year statute oflimitations that commences when the cause of
12 action accrues. (/d., 17208.) The UCL's four-year statute of limitations governs even where the
13 predicate law upon which allegations of unlawful business conduct are based has a different
14 limitations period. The continuing violations doctrine permits recovery for conduct outside of the
15 limitations period if that conduct constitutes a continuing pattern and course of conduct as opposed
16 to unrelated discrete acts. If there is a pattern, then the suit is timely if the action is filed within the
17 statutory period of the most recent violation.
18 134. The remedies for a violation of the UCL include injunctive relief and restitution. (/d.,
19 17203 and 17204.) In addition, when a UCL action is brought by the City Attorney in the name
20 of the People, the City Attorney may seek civil penalties of up to $2,500 for each violation ofthe
21 UCL (id., 17206), or up to $5,000 if the violation was perpetrated against a disabled or elderly
22 person (id., 17206.1 ).
23 135. The remedies and penalties available under the UCL are in addition to those available
24 under other laws. Business and Professions Code section 17205 provides that, unless otherwise
25 expressly provided, the remedies or penalties provided by the UCL are cumulative to the remedies or
26 penalties available under all other laws of this state.
27
28
73
COMPLAINT
I 2.
"Unlawful" Business Acts and Practices
2 136. By defming unfair competition to include any "unlawful" business act or practice,
3 the UCL permits violations of other laws to be treated as unfair competition that is independently
4 actionable.
5 13 7. The "unlawful" prong of section 17200 embraces anything that can properly be called
6 a business practice and that at the same time is forbidden by law. It borrows violations of other laws
7 and treats them as independently actionable. Virtually any state, federal or local law can serve as the
8 predicate for an action under Business and Professions Code section 17200. The UCL thus prohibits
9 any practices forbidden by law, be it civil or criminal, federal, state, or municipal, statutory,
I 0 regulatory, or court-made.
11 138. While the unlawful prong of Section 17200 is itself a strict liability provision, the
12 standard of liability for a cause of action for unlawful business practices is borrowed from the
13 predicate law the allegations are based upon.
14 B. DEFENDANT's Violations of the UCL
15 139. DEFENDANT U.S. Bank National Association, has violated, and continues to
16 violate, the UCL by engaging in the following unlawful business acts and practices, among others,
17 relating to the Foreclosed Properties:
18
19
20
21
22
23
24
25
26
27
28
A. Causing, permitting and maintaining vacant buildings without required or proper
fencing, cleaning and barricades, in violation of the Los Angeles Vacant Building
Ordinance and other requirements (LAMC sections 98.0701, et seq. and Civil Code
section 2929 et seq.
B. Failing to register foreclosed properties in violation of the Los Angeles Foreclosure
Registry Ordinance (LAMC section 164.oJ.)
C. Creating, maintaining and contributing to the creation and maintenance of public
nuisance conditions at occupied residential properties, in violation of Civil Code
sections 3479 and 3480.
74
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
D. Causing, permitting and maintaining substandard conditions in occupied residential
dwellings, in violation of Health and Safety Code section 17920.3 and Civil Code
section 1941.
E. Causing and permitting buildings and premises to be maintained in unsafe and
unsanitary conditions, in violation ofLAMC sections 91.3401.2 and 91.8104 and
California Building Code section 3401.2.
F. Permitting the improper use and storage of automobiles, in violation of LAMC
sections 12.2l.A.8, subdivisions (a) and (b) and 12.2l.C.l, subdivision (g).
G. Causing, permitting and maintaining impeded exits, in violation ofLAMC, section
91.1000 and California Building Code sections 1008.1.9 and 1029.4.
H. Causing, permitting and maintaining improperly installed smoke detectors, in
violation of section 91.900 of the LAMC, and sections 907.2.11.2 and 907.2.11.4 of
the California Building Code.
I. Causing, permitting and maintaining inadequate ventilation of interior spaces, in
violation ofLAMC section 91.1200 and California Building Code sections 1203.1,
1203.3 and 1203.4.
J. Causing, permitting and maintaining swimming pools that ~ r e unsafe and
unsanitary, in violation ofLAMC sections 91.3109 and 91.8118 and California
Building Code section 3109.4.3.
K. Causing, permitting and maintaining electrical systems and equipment that do not
comply with all applicable provisions of the Electrical Code, including, but not
limited to, maintaining abandoned wiring, in violation ofLAMC sections 93.0104
and 93.0312.
L. Causing and permitting the installation of defective plumbing and improper waste
disposal systems, in violation ofLAMC section 94.300.0 and California Plumbing
Code sections 301.1.1, 301.1.4 and 303.0.
75
COMPLAINT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
M. Causing, permitting and maintaining water heaters that are not properly anchored and
vented, in violation ofLAMC section 94.500 and California Plumbing Code sections
508.2 and 510.2.1.
N. Causing, permitting and maintaining heating, ventilating, air-conditioning and
refrigeration equipment in unsafe, improper and hazardous conditions, in violation of
LAMC section 95.104 and California Mechanical Code section 104.4.
0. Causing, permitting and maintaining untenantable rental units, and collecting rent,
increasing rent and issuing three-day notices to pay rent or quit for such units, in
violation of Civil Code section 1941 and the implied warranty of habitability.
P. Causing and permitting tenants to be disturbed in the quiet enjoyment of their rental
units by, in par, causing and permitting untenantable conditions to exist, in violation
of Civil Code section 1927.
Q. Causing and permitting property taxes that were due and owing not to be paid, in
violation of Article 13 of the California Constitution and the California Code of
Regulations, title 18, section 462.120.
16 140. DEFENDANT U.S. Bank National Association's acts of unfair competitioh present a
17 continuing threat to the public's health, safety and welfare. PLAINTIFF has no adequate remedy at
18 law, and unless DEFENDANT U.S. Bank National Association is permanently enjoined and
19 restrained by order of this Court, DEFENDANT U.S. Bank National Association will continue to
20 commit the acts of unfair competition described herein, thereby causing further irreparable injury to
21 the public's health, safety and welfare.
22 SECOND CAUSE OF ACTION
23 Unfair and Fraudulent Business Acts and Practices Under the
25 (Against Defendant in Its Representative Capacity Only)
28
76
COMPLAINT
1 A.
"Unfair" and "Fraudulent" Business Acts and Practices
2 142. By defining unfair competition to include also any "unfair" or "fraudulent" business
3 act or practice, the UCL sweeps within its scope acts and practices not specifically proscribed by any
4 other law.
5 143. The "unfair" prong of Section 17200 provides an independent basis for relie It is
6 not necessary, therefore, for a business practice to be "unlawful" in order to be subject to an action
7 under the unfair competition law. In general the "unfairness" prong has been used to enjoin
8 deceptive or sharp practices.
9 144. The courts of this state have adopted several tests for determining whether a business
10 act or practice is unfair:
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
A. A business practice is unfair "when that practice 'offends an established public policy
or when the practice is immoral, unethical, oppressive, unscrupulous or substantially
injurious .... "' (State Farm Fire & Casualty Co. v. Superior Court (1996) 45
Cal.App.4th 1093, 1104, quoting People v. Cas a Blanca Convalescent Homes, Inc.
(1984) 159 Cal.App.3d 509, 530.)
B. Another "test of whether a business practice is unfair involves an examination of [that
practice's] impact on its alleged victim, balanced against the reasons, justifications
and motives of the alleged wrongdoer. In brief, the court must weigh the utility of the
Defendant's conduct against the gravity of the harm to the alleged victim .... "
(State Farm Fire & Casualty Co. v. Superior Court, supra, 45 Cal.App.4th at pp.
1103-1104 [citations and internal quotation marks omitted].)
C. It also is an unfair business practice when the Defendant's conduct "threatens an
incipient violation of [a law], or violates the policy or spirit of [a law] because its
effects are comparable to or the same as a violation of the law, or otherwise
significantly threatens or harms competition." (Cel-Tech Communications, Inc. v.
Los Angeles Cellular Telephone Co. (1999) 20 Cal.4th 163, 187; see also Scripps
Clinic v. Superior Court (2003) 108 Cal.App.4th 917, 939.)
77
COMPLAINT
1
2
3
4
5
6
7
8
D. More recently, one Court of Appeal has fashioned a test for determining whether a
practice is unfair based upon section 5 of the Federal Trade Commission Act (15
U.S.C. 41 et seq.). Under this test, "[ a]n act or practice is unfair if [1] the consumer
injury is substantial, [2] is not outweighed by any countervailing benefits to
consumers or to competition, and [3] is not an injury the consumers themselves could
reasonably have avoided." (Daugherty v. American Honda Motor Co., Inc., 144
Cal.App.4th 824, 839 [bracketed numbers added]; see also Camacho v. Automobile
Club of Southern California (2006) 142 Cal.App.4th 1394, 1403.)
9 145. The "fraudulent" prong of section 17200 affords protection against the probability or
10 likelihood as well as the actuality of deception or confusion. The test is whether members of the
11 public are likely to be deceived.
12 146. A UCL action alleging violations ofthe "fraudulent" prong is distinct from common
13 law fraud. A fraudulent deception must be actually false, known to be false by the perpetrator and
14 reasonably relied upon by a victim who incurs damages. None of these elements are required to
15 state a claim for injunctive relief under section 17200. This distinction reflects the UCL's focus on
16 the defendant's conduct, rather than the plaintiff's damages, in service of the statute's larger purpose
17 of protecting the general public against unscrupulous business practices.
18 B. DEFENDANT's Violations of the UCL
19 147. DEFENDANT U.S. Bank National Association has violated, and continues to violate,
20 the UCL by engaging in the following "unfair" business acts and practices, among others, relating to
21 the Foreclosed Properties:
22 A. After May 20, 2009, failing to provide tenants with 90 days notice to vacate where
23 otherwise permitted, in violation of the Protecting Tenants at Foreclosure Act (12
24 U.S.C. 5220).
25 B. Repeatedly attempting to vacate lawful tenants from Foreclosed Properties with no
26 legal basis to do so, in an effort to circumvent the requirements of LAMC sections
27 49.90 and 151.09 and U.S. Code ofFederal Regulations, title 24, section 982.310.
28
78
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
C. Repeatedly causing and permitting tenants to be removed and/or attempting to
remove tenants from their rental units without paying them adequate relocation fees,
in an effort to circumvent the requirements of the RSO. (LAMC, 151.09, subd.(g).)
D. Threatening incipient violations of the aforementioned state laws and violating the
public policy embodied in the spirit ofthose laws.
E. Violating the established public policy of the State of California, which, among other
things, seeks to avoid the creation and maintenance ofpublic nuisances, to protect
tenants from having to reside in uninhabitable rental units, to maintain the affordable
housing stock and to prevent actual and constructive unlawful evictions.
F. Causing and permitting the commencement of unlawful detainer actions that were
later dismissed or decided in favor of the tenant, without probable cause and in bad
faith.
G. DEFENDANT U.S. Bank National Association's conduct as described in this
Complaint has been immoral, unethical, oppressive, and unscrupulous in that
DEFENDANT U.S. Bank National Association has, among other things,
intentionally, negligently and recklessly failed to maintain occupied premises in safe,
sanitary and habitable conditions, allowed vacant properties to become public
nuisances that have contributed to the deterioration of whole neighborhoods and
communities and have forced low income tenants from their homes without a basis in
law or fact.
H. Applying and balancing the factors of Section 5 of the Federal Trade Commission
Act (15 U.S.C. 45): (i) the injury to tenants living in DEFENDANT U.S. Bank
National Association's properties has been substantial, as hundreds of tenants have
been forced to live in uninhabitable rental units and to endure DEFENDANT U.S.
Bank National Association's violation of their rights, and the surrounding
communities have been subjected to hazards engendered by the nuisance conditions;
(ii) these injuries are not outweighed by any countervailing benefits to such victims in
79
COMPLAINT
1
2
3
4
5
6
7
8
that DEFENDANT U.S. Bank National Association could have renovated the
properties without causing tenants to live in uninhabitable units, or the surrounding
conununities to be exposed to nuisance conditions or violating their rights; and (iii)
the injuries to tenants from living in uninhabitable rental units and being subjected to
violations of their rights, and the injury to the surrounding conununities from being
exposed to nuisance conditions, are not ones these victims could have reasonably
avoided, as they have no ability to control the condition of DEFENDANT U.S. Bank
National Association's buildings or the actions of DEFENDANT U.S. Bank National
9 Association in violating their rights.
10 148. DEFENDANT U.S. Bank National Association has further violated, and continues to
11 violate, the UCL by engaging in the following "fraudulent" business acts and practices, among
12 others, relating to the Foreclosed Properties: false and misleading statements, including, but not
13 limited to, threatening letters and notices sent to tenants that falsely represented bases for eviction,
14 contained misleading statements and omitted information regarding tenants' rights in the event of a
15 foreclosure sale.
16 149. DEFENDANT U.S. Bank National Association's acts of unfair competition present a
20 conunit the acts of unfair competition described herein, thereby causing further irreparable injury to
22 TIDRD CAUSE OF ACTION
23 Violations of Los Angeles Municipal Code section 11.00, subdivision (I)
24 (Against Defendants in Its Individual and Representative Capacities)
27
28
80
COMPLAINT
1 151. Any violation of any provision of the LAMC is deemed to be a public nuisance.
2 (LAMC, 11.00(1).) LAMC section 11.00, subdivision (I) provides in relevant part that: "Violations
3 of this Code are deemed continuing violations and each day that a violation continues is deemed to
4 be a new and separate offense and subject to a maximum civil penalty of $2,500 for each and every
5 offense." Every repetition of a continuing nuisance is a separate wrong for which the person injured
6 may bring successive actions for damages until the nuisance is abated.
7 152. As described more fully above, DEFENDANT U.S. Bank National Association has
8 caused, permitted and maintained, and continue to cause, permit and maintain, conditions at the
9 Foreclosed Properties that have violated the following sections of the LAMC:
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
A. LAMC section 12.2l.A.8, subdivisions (a) and (b), and section 12.2l.C.l. subdivision
(g), relating to the improper use and storage of automobiles.
B. LAMC section 91.1000 (adopting by reference California Building Code sections
1008.1.9 and 1029.4), relating to impeded exits.
C. LAMC section 91.900 (adopting by reference California Building Code sections
907.2.11.2 and 907.2.11.4), relating to improper installation of smoke detectors.
D. LAMC section 91.1200 (adopting by reference California Building Code sections
1203.1, 1203.3 and 1203.4), relating to inadequate ventilation of interior spaces.
E. LAMC sections 91.3109 (adopting by reference California Building Code section
31 09.4.3) and 91.8118, relating to improper maintenance of swimming pools.
F. LAMC sections 3401.2 and 91.8104 (adopting by reference California Building Code
section 340 1.2), relating to the failure to maintain buildings and premises in safe and
sanitary condition.
G. LAMC sections 93.0104 and 93.0312, relating to installation, operation and
maintenance of electrical systems and equipment that do not comply with all
applicable provisions of the Electrical Code, including, but not limited to, the
maintenance of abandoned wiring.
81
COMPLAINT
1
2
3
4
5
6
7
8
9
10
11
12
H. LAMC section 94.300.0 (adopting by reference California Plumbing Code sections
301.1.1, 301.1.4 and 303.0), relating to the installation, operation and maintenance of
defective plumbing and improper disposal of waste.
I. LAMC section 94.500 (adopting by reference California Plumbing Code section
510.2.1 ), relating to the failure to properly secure water heaters.
J. LAMC section 95.104 (adopting by reference California Mechanical Code section
104.4), relating to the failure to maintain heating, ventilating, air-conditioning and
refrigeration equipment in safe, proper and hazard-free condition.
K. LAMC sections 91.8904 and 98.0701, et seq., relating to the failure to clean, fence,
barricade, post the required notice at and file the required Statement oflntent for
vacant buildings.
L. LAMC sections 49.90 and 151.09, relating to the unlawful eviction of tenants.
13 153. As a consequence of the foregoing, DEFENDANT U.S. Bank National Association
14 should be permanently enjoined and restrained by order of this Court from violating tenants' rights
15 and permitting such conditions to exist at the Foreclosed Properties, pursuant to LAMC section
16 11.00, subdivision(!).
17 154. DEFENDANT U.S. Bank National Association's violations of the LAMC present a
21 commit the violations of the LAMC described herein, thereby causing further irreparable injury to
23 155. As a further consequence of the foregoing, DEFENDANT U.S. Bank National
24 Association is jointly and severally liable for the payment of a civil penalty of $2,500 for each day it
25 caused or permitted each LAMC violation at each of the Foreclosed Properties, pursuant to LAMC
26 section 11.00, subdivision(!).
27
28
82
COMPLAINT
1 PRAYER FOR RELIEF
2 Wherefore, the PEOPLE pray that:
3 1.
Pursuant to Business and Professions Code sections 17203 and 17204 and the
4 equitable powers of the Court, DEFENDANT U.S. Bank National Association and DOES 1 through
5 2500, together with their officers, employees, agents, representatives, attorneys, contractors and all
6 persons acting on behalf of or in concert with them, be provisionally and permanently enjoined from
7 committing, causing, permitting, aiding, abetting and conspiring to commit the unlawful, unfair and
8 fraudulent business acts and practices described herein.
9 2. Pursuant to LAMC section 11.00, subdivision (!)and the equitable powers of the
10 Court, DEFENDANT U.S. Bank National Association and DOES 1 through 2500, together with
11 their officers, employees, agents, representatives, attorneys, contractors and all persons acting on
12 behalf of or in concert with them, be provisionally and permanently enjoined from committing,
13 causing, permitting, aiding, abetting and conspiring to commit the violations of the LAMC described
14 herein.
15 3. Pursuant to Business and Professions Code sections 17203 and 17204, LAMC section
16 11.00, subdivision (I) and the equitable powers of the Court, DEFENDANT U.S. Bank National
17 Association and DOES 1 through 2500, together with their officers, employees, agents,
18 representatives, attorneys, contractors and all persons acting on behalf of or in concert with them, be
19 ordered to take all reasonable measures to prevent and avoid the commission of the unlawful, unfair
20 and fraudulent business acts and practices and other violations oflaw described herein, such
21 measures to include, without limitation: (A) register all Foreclosed Properties in accordance with
22 the FRO; (B) provide a complete inventory of all Foreclosed Properties, to be updated on a monthly
23 basis; (C) irispect all Foreclosed Properties to determine compliance with all applicable habitability,
24 tenancy and nuisance laws; (D) ensure that all Foreclosed Properties are brought into timely
25 compliance with all applicable habitability, tenancy and nuisance laws; (E) refrain from filing
26 unlawful detainer cases, serving notices to quit, offering to pay cash for keys, sending threatening
27 letters, making false and misleading representations and engaging in any other action causing tenants
28
83
COMPLAINT
1 of foreclosed rental units to vacate for any reason other than one or more of the twelve grounds
2 specified in the RSO, LAMC section 151.09; and (F) designate at least one full-time senior
3 employee to manage all Foreclosed Properties in accordance with these injunctive terms.
4 4.
Pursuant to Business and Professions Code sections 17203 and 17204 and the
5 equitable powers of the Court, DEFENDANT U.S. Bank National Association and Does 1 through
6 2500 be ordered to pay restitution to any person deprived of money or property as a result of the
7 unlawful, unfair and fraudulent business acts and practices described herein.
8 5.
Pursuant to Business and Professions Code section 17206, DEFENDANT U.S. Bank
9 National Association and DOES 1 through 2500 be jointly and severally assessed a civil penalty of
I 0 $2,500 for each violation of the UCL that they committed, caused, permitted, aided, abetted, or
11 conspired to commit relating to any Foreclosed Property.
12 6.
Pursuant to Business and Professions Code section 17206.1, DEFENDANT U.S.
13 Bank National Association and DOES 1 through 2500 be jointly and severally assessed an additional
14 civil penalty of$2,500 for each violation of the UCL that they committed, caused, permitted, aided,
15 abetted, or conspired to commit relating to any Foreclosed Property against a senior citizen or
16 disabled person.
17 7.
Pursuant to LAMC section 11.00, subdivision (1), DEFENDANT U.S. Bank National
18 Association and DOES 1 through 2500 be jointly and severally assessed a civil penalty of $2,500 per
19 day for each violation of the LAMC that they committed, caused, permitted, aided, abetted, or
20 conspired to commit relating to any Foreclosed Property.
21 II
22 II
23 II
24 II
25 II
26 II
27
28
84
COMPLAINT
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8.
9.
and proper.
PLAINTIFF to recover the costs of this action.
PLAINTIFF to be granted such other and further relief as the Court may deem just
Dated: July 16,2012
CARMEN A. TRUTANICH, City Attorney
TINA HESS, Assistant City Attorney
SUZANNE SPILLANE, Supervising Deputy City Attorney
JANET KARKANEN, Deputy City Attorney
JULIA FIGUEIRA-MCDONOUGH, Deputy City Attorney
OFFICE OF THE LOS ANGELES CITY ATTORNEY
CRIMINAL BRANCH
__..-----

Attorneys for Plaintiff
The People of the State of California
85
COMPLAINT

PEOPLE of The STATE of CA V US Bank National Association As Trustee-Several Trust - LA CA-1

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PEOPLE of The STATE of CA V US Bank National Association As Trustee-Several Trust - LA CA-1

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TRUTANICH, City Attorney (SBN 86629) COPY

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