California Court of Appeals Rules For David & Against Goliath

In March 2009, I filed a federal law suit against Bank of America, Countrywide, Wells Fargo and more than 100 “Doe” defendants for predatory lending.

My wife and I in March 2006, purchased our first home. We were set to put 5% down payment on $719,000 place in Silicon Valley which is about 2 miles from yahoo headquarters, 5 from ebay and google etc.

One of our 3 banks was Wells Fargo. We asked them to fund the property; however, they sent us to Countrywide saying that they would serve our needs better. Our credit rating was above 700. We had two out of town lenders willing to set us up in 4,200 and 4,800 monthly installments which would be applied in part to build up equity.

Countrywide loan manager Mike Colyer convinced us that he and Countrywide would provide a loan that would beat out their competitors. The installments were guarantied to be between $1,800 and 2,200. We fired those we were working with, removed our loan contingency and were in heaven.

As a back drop, this was our first home, and just 4 months earlier we were married. What happened next was akin to feeling like you’re being rushed down the drain of a sink.

Two days before close of escrow, Colyer presented us with a 5,200 monthly and we promised to walk away which caused him to relent and claim that a subordinate made a mistake. He swore on his own life that he would take care of it and give us the originally promised deal.

Instead of inviting us into Countrywide’s or the Escrow offices, Colyer and others tells American Title to send someone to our apartment in Mt View and get us to sign documents which later turned out to be blank and filled in later by Colyer and others. On top of this they left us with docs which were blank.

We really did not know what to get and did not consult any lawyer or other. Our own agent was less than helpful. Nonetheless we were promised that filled in docs would be sent us, but it would not come until 3 years later after we stopped making mortgage payments and threatened litigation.

Well, Once we received the filled in docs, we consulted a lawyer who explained in simple words that we had been defrauded out of more than $200,000.

I stopped spending 70 hours a week on my own corporation that was manufacturing and marketing products, my book marketing efforts as well as my W2 job and plunged deeply into jurisprudence. i.e. the study of the law.

I filed a federal lawsuit which judge Ware of San Jose District Court dismissed. I have since learned that he is simply biased against pro se litigants – i.e. those who are not Bar members suing on their own behalf. I filed appeal and the 9th Circuit appointed a law firm out of San Francisco to give Oral Argument some time next year … to be con’d.

After Ware dismissed the federal case, my wife and I brought a State of California lawsuit against the same parties, including Angelo Mozilo, the chief fraudster who walked off with over One Billion from Countrywide as its CEO. Since then we watched all the states attorneys generals and federal prosecutors cut deals so no prison time would be issued and so they would all keep the bulk of their money in tact.

Our California lawsuit, Merritt v. Mozilo et al, 109cv159993 (Santa Clara Co) was filed and our first judge, kevin Murphy, dismissed Wells Fargo from the case and so we appealed. In the meantime we received a new judge who, although he dismissed MERSCorp and First American Title Company, Judge Mark Pierce has held that Countrywide along with its CEO Mozilo, President David Sambol, Mike Colyer and others shall face Fraud and several aspects of Unfair Business Practices. Trial setting conference is set for February 23, 2012.

Amazingly, no, miraculously, California Court of Appeals called for us to come to its chambers to present oral argument. Unlike the wealthier Federal counterpart, they did not appoint counsel to argue, but I had to give oral argument myself.

It was my first time ever standing before Appellate Justices. And it was surreal.

The Courtroom itself felt futuristic, kind of like Judge Dread’s courtroom that Stallion played in. There were three respectful and serious faces. One female, and two males. It was actually awe inspiring.

We were the second of three cases heard this afternoon and as I listened to the first I had a bladder issue that took me out and learned the rule that once the Court is in session, any movement out cannot come back in until the current case is completed. So I was stuck in the waiting area watching the end of arguments on the monitor. My wife of course panicked thinking perhaps that I had a fear attack and ran off to never come back, so she came out and got stuck with me.

In short, I gave what I believe was a mediocre oral argument against Wells Fargo attorney who is purportedly paid some 500 to 1000 per hour and we left. That was exactly two weeks ago.

Well, last night, 3 days before X-mas we received the Court of Appeals decision.

The Justices rejected my 3 procedural grounds for reversal, one of which was the first time the issue has ever come before it, and my one issue that focused on “the merits” of the case. i.e. whether or not the factual allegations of the complaint were good enough to go to trial.

I cannot recount it all, and you are welcome to read the Court’s decision. I would suggest that you read from page 31 to 35, which is the most important part. It holds that our complaint shows that Countrywide committed fraud and that it had co-conspirators, one of which is clearly Wells Fargo. That judge Kevin Murphy made a error in dismissing Wells Fargo from the case and the trial court must add them back into it to face conspiracy to commit fraud charges.

Now I know what it means to declare “HALLELUJAH!”

Yes, I am taking on the 99% directly and could not possibly do so without God and my wife. That is a bona fide truth.

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