Court Holds the Homeowners’ Bill of Rights Does

Not Provide for Injunctive Relief

In Lucioni v. Bank of America, N.A., a California Appellate Court held that the Homeowners’ Bill of Rights (“HBOR”) does not allow for injunctive relief based on a lender’s alleged lack of standing to foreclose.  In Lucioni, plaintiff obtained a loan secured by a deed of trust.  Bank of America transferred its interest in the loan to Raymond James Bank, N.A.  Raymond James initiated foreclosure proceedings.  Plaintiff sought injunctive relief to stop the foreclosure arguing that Raymond James, Bank of America and others lacked standing to foreclose because none of them owned the beneficial interest in the loan or deed of trust.  The lenders demurred arguing that that HBOR does not provide for a mechanism for injunctive relief.   The trial court sustained the demurrers without leave to amend and dismissed the case.  Plaintiff appealed.  The court of appeals affirmed holding that HBOR does not authorize injunctive relief for violations.  The appellate court held that to enjoin a foreclosure sale under HBOR, the borrower must state a claim for a material violation of one of the nine specified HBOR provisions that are listed in the Code.  Lack of standing is not included on that list.

Shannon B. Jones, Partner, sbj@sbj-law.com