De Jong v. Nationstar Mortgage LLC

Summary

The United States District Court for the Northern District of California granted Nationstar Mortgage LLC’s motion for summary judgment in Mark De Jong’s mortgage-servicing action. The court held that a 2020 settlement agreement barred the lawsuit because De Jong had not reinstated or paid off the loan as required, and rejected his arguments that Nationstar waived enforcement or prevented performance. The court also denied De Jong’s request for leave to amend to add a claim under California Civil Code section 2923.6.

Holdings

1. The 2020 settlement agreement barred Plaintiff's lawsuit because he did not reinstate or fully pay off the loan by November 30, 2020 and had expressly waived defenses challenging foreclosure or the foreclosure process.
2. Plaintiff failed to raise a triable issue that Nationstar waived enforcement of the settlement agreement merely by placing the loan into forbearance and working with him to avoid foreclosure.
3. Plaintiff could not avoid enforcement of the settlement agreement based on the principle that a party may not rely on a condition it prevented because he presented no evidence that Nationstar prevented him from reinstating or paying off the mortgage.
4. Leave to amend was denied because Plaintiff sought amendment after the court's deadline and failed to show the diligence required for good cause under Rule 16(b)(4).

Questions Presented

1. Whether the 2020 settlement agreement barred Plaintiff's action because he failed to reinstate or pay off the mortgage by November 30, 2020 and waived defenses challenging foreclosure.
2. Whether Nationstar waived enforcement of the 2020 settlement agreement by working with Plaintiff through a later forbearance period.
3. Whether Nationstar's alleged misconduct prevented Plaintiff from satisfying the settlement agreement's reinstatement or payoff condition.
4. Whether Plaintiff should receive leave to amend under Federal Rules of Civil Procedure 15(a)(2) and 16(b)(4) to add a claim under California Civil Code section 2923.6.

Disposition

other