California Appellate Tracker

Woods v. U.S. Bank, N.A.

August 9, 2016

A homeowners association’s post-foreclosure quiet title action stated a viable claim against the former owner who might challenge the foreclosure; hence, the former owner was not fraudulently joined and the federal courts lacked diversity jurisdiction.

Under Oregon’s Deed of Trust Act, a borrower may bring a post-foreclosure suit to overturn a non-judicial sale only for lack of notice or some other fundamental flaw in the foreclosure (such as the borrower not being in default), not for technical noncompliance with statutory requirements that have no impact on the borrower’s substantive rights, such as, in this case listing the wrong entity as beneficiary of the deed of trust in the trustee’s notice of the foreclosure sale.

Ninth Circuit Court of Appeals (Soto, J.); August 3, 2016; 2016 WL 4120687

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Woods v. U.S. Bank, N.A.

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