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Request for Judicial Notice - - Plaintiffs' Opposition to Request for Judicial… — Bofa Ca Unemployment (Dkt. 90.2)

No. 3:21-md-02992-GPC-MSB · Doc. 90-2 · Docket on CourtListener

Summary

Plaintiffs' opposition to Bank of America, N.A.'s request for judicial notice in support of its motion to dismiss the Master Consolidated Complaint, filed November 15, 2021 as Document 90-2 in In re Bank of America California Unemployment Benefits Litigation, No. 3:21-md-02992-GPC-MSB, in the U.S. District Court for the Southern District of California. The plaintiffs object to judicial notice of Exhibits 1, 2 and 3 to a declaration offered by the bank. They argue that Exhibit 1, a cardholder agreement, says North Carolina law governs while the version on the bank's website for EDD debit cardholders says California law governs. They argue that Exhibit 2 contains unaccepted redlined changes and that Exhibit 3, an August 24, 2020 letter agreement, is not referenced in the complaint. The filing asks the court to deny the request in its entirety.

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Case 3:21-md-02992-GPC-MSB      Document 90-2    Filed 11/15/21     PageID.722   Page 1
                                       of 7


    1   JOSEPH W. COTCHETT (SBN 36324)  MICHAEL RUBIN (SBN 80618)
    2   jcotchett@cpmlegal.com          mrubin@altber.com
        BRIAN DANITZ (SBN 247403)       STACEY M. LEYTON (SBN 203827)
    3   bdanitz@cpmlegal.com            sleyton@altber.com
    4   KARIN B. SWOPE (Pro Hac Vice)   MATTHEW MURRAY (SBN 271461)
        kswope@cpmlegal.com             mmurray@altber.com
    5   ANDREW F. KIRTLEY (SBN 328023)  CONNIE K. CHAN (SBN 284230)
    6   akirtley@cpmlegal.com           cchan@altber.com
        KAIYI A. XIE (SBN 311182)       CHRISTINE SALAZAR (SBN 330468)
    7   kxie@cpmlegal.com               csalazar@altber.com
    8   COTCHETT, PITRE & McCARTHY, LLP ALTSHULER BERZON LLP
        840 Malcolm Road, Suite 200     177 Post Street, Suite 300
    9   Burlingame, CA 94010            San Francisco, CA 94108
   10   Telephone: (650) 697-6000       Telephone: (415) 421-7151
        Fax: (650) 697-0577             Fax: (415) 362-8064
   11

   12   Co-Lead Counsel for Plaintiffs and the Proposed Class
        (Additional Counsel Listed Below)
   13

   14
                           UNITED STATES DISTRICT COURT
   15
                         SOUTHERN DISTRICT OF CALIFORNIA
   16

   17   IN RE BANK OF AMERICA                       Case No. 3:21-md-02992-LAB-MSB
   18   CALIFORNIA UNEMPLOYMENT
        BENEFITS LITIGATION                         PLAINTIFFS’ OPPOSITION TO
   19                                               REQUEST FOR JUDICIAL
   20                                               NOTICE IN SUPPORT OF
                                                    MOTION TO DISMISS MASTER
   21                                               CONSOLIDATED COMPLAINT
   22
        This Document Relates to All Actions        Date:         January 10, 2022
   23                                               Time:         11:30 a.m.
   24                                               Crtm:         14A – 14th Floor
                                                    Judge:        Hon. Larry Alan Burns
   25

   26

   27

   28

             Pltffs’ Opposition to Request for Judicial Notice ISO Motion to Dismiss;
                               Case No. 3:21-md-02992-LAB-MSB
Case 3:21-md-02992-GPC-MSB          Document 90-2      Filed 11/15/21    PageID.723     Page 2
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    1            Plaintiffs respectfully submit this Opposition to Defendant Bank of
    2   America, N.A.’s (“BofA”) Request for Judicial Notice (“BofA RJN”) in support
    3   of its Motion to Dismiss the Master Consolidated Complaint (“MCC”). Plaintiffs
    4   object to the request that the Court take judicial notice of the documents attached
    5   as Exhibits 1, 2 and 3 to the Declaration of Robert Chestnut (“Chestnut Decl.”).
    6      I.       LEGAL STANDARD
    7            It is axiomatic that if the “legal sufficiency of a complaint’s allegations is
    8   tested by a motion under Rule 12(b)(6), ‘[r]eview is limited to the complaint.’” Lee
    9   v. City of Los Angeles, 250 F.3d 668, 688 (9th Cir. 2001) (citation omitted). A court
   10   cannot consider “defendants’ factual assertions . . . [and] evidence outside
   11   plaintiffs’ pleadings,” id., unless it “convert[s] the 12(b)(6) motion into a Rule 56
   12   motion for summary judgment, and . . . give[s] the nonmoving party an opportunity
   13   to respond,” United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003). There are
   14   two narrow exceptions.
   15            First, a court may take judicial notice of an “adjudicative fact . . . not subject
   16   to reasonable dispute.” Fed. R. Evid. 201; Khoja v. Orexigen Therapeutics, Inc.,
   17   899 F.3d 988, 999 (9th Cir. 2018). A fact is “not subject to reasonable dispute” if it
   18   is “generally known” or “can be accurately and readily determined from sources
   19   whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201. Second, the
   20   incorporation by reference doctrine permits a court to consider an extrinsic
   21   document “the complaint ‘necessarily relies’ on if (1) the complaint refers to the
   22   document; (2) the document is central to the plaintiff’s claim; and (3) no party
   23   questions the authenticity of the copy attached to the 12(b)(6) motion.” Marder v.
   24   Lopez, 450 F.3d 445, 448 (9th Cir. 2006) (citations omitted).
   25      II.      ARGUMENT
   26               A. Exhibit 1 to the Chestnut Declaration: Cardholder Agreement
   27            Exhibit 1 purports to be a copy of the account agreement that sets forth the
   28   “terms and conditions of recipients’ California Employment Development

        Pltffs’ Opposition to Request for Judicial Notice ISO Motion to Dismiss;
        Case No. 3:21-md-02992-LAB-MSB                                                       1
Case 3:21-md-02992-GPC-MSB       Document 90-2      Filed 11/15/21   PageID.724     Page 3
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    1   Department Debit Card.” BofA RJN at 4. However, Exhibit 1 is different from the
    2   version of the Cardholder Agreement between BofA and Plaintiffs that is available
    3   on BofA’s website for California Employment Development Department (“EDD”)
    4   Debit Cardholders, which Plaintiffs relied upon, even though both documents state
    5   “Effective Date March 1, 2018.” Compare Chestnut Decl., Ex. 1 with Declaration
    6   of Brian Danitz (“Danitz Decl.”) ¶ 2, Ex. A. Specifically, section 18 of Exhibit 1 to
    7   the Chestnut Declaration states that North Carolina law governs the agreement,
    8   whereas the version of the Cardholder Agreement on BofA’s website for EDD
    9   Debit Cardholders states that California law governs. Compare Chestnut Decl., Ex.
   10   1, §18 with Danitz Decl., Ex. A, §18. 1 Accordingly, Exhibit 1 is not subject to
   11   judicial notice because it is subject to reasonable dispute and the document may not
   12   be incorporated by reference into the MCC because its accuracy and authenticity is
   13   in doubt.
   14         Plaintiffs have separately filed a Request for Judicial Notice (Plaintiff’s
   15   RJN”) asking the Court to consider the copy of the Cardholder Agreement attached
   16   as Exhibit A to the accompanying declaration, which is the publicly available
   17   version of the Cardholder Agreement on the BofA EDD Debit Card website at
   18   https://www.visaprepaidprocessing.com/eddcard/Program/Terms and requesting
   19   that the Court consider that document as incorporated by reference in the MCC.
   20   See Plaintiffs’ Request for Judicial Notice In Support Of Opposition to Motion to
   21   Dismiss (Plaintiffs’ RJN”).
   22               B. Exhibit 2 to the Chestnut Declaration: EDD-BofA Agreement
   23         Exhibit 2 purports to be a “true and correct copy of excerpts of the agreement
   24   between [BofA] and the California Employment Development Department.” RJN
   25   at 5. While Plaintiffs agree in principle that the Court may take judicial notice of an
   26

   27
        1The two documents are otherwise substantially the same. Compare Danitz Decl.,
   28
        Ex. A at 1 with Chestnut Decl., Ex. 1 at 1.
        Pltffs’ Opposition to Request for Judicial Notice ISO Motion to Dismiss;
        Case No. 3:21-md-02992-LAB-MSB                                           2
Case 3:21-md-02992-GPC-MSB       Document 90-2     Filed 11/15/21    PageID.725     Page 4
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    1   authentic copy of the 2015 EDD-BofA Contract referenced in the MCC, 2 Exhibit 2
    2   is neither judicially noticeable nor incorporated by reference into the MCC because
    3   there are serious questions about its authenticity. First, it includes uncompleted
    4   edits which are plainly visible as redlined changes. See Chestnut Decl., Ex. 2 at 8.
    5   These unaccepted redlined changes to the document create a factual dispute as to
    6   whether the excerpt is the final version (which it likely isn’t) and casts the
    7   authenticity of Exhibit 2 into dispute, rendering it unsuitable for incorporation by
    8   reference or judicial notice. See Dual Diagnosis Treatment Ctr., Inc. v. Blue Cross
    9   of Cal., 2016 WL 6892140, at *23 (C.D. Cal. Nov. 22, 2016) (“Where an offered []
   10   document . . . still has redlining or edits in the document, the Court is unwilling to
   11   accept the authenticity of the document even where no party has objected.”);
   12   Knievel v. ESPN, 393 F.3d 1068, 1076 (9th Cir. 2005) (incorporation by reference
   13   appropriate only if “no party” questions authenticity); Zapia v. Wells Fargo Bank,
   14   N.A., 2018 WL 2461505, at *3 (S.D. Cal. June 1, 2018) (refusing to take judicial
   15   notice of a document challenged as inauthentic). Second, Exhibit 2 is also facially
   16   different than a copy of the EDD Agreement that California EDD produced to
   17   Plaintiffs pursuant to the California Public Records Act (Cal. Gov. Code §6250 et
   18   seq.). See Danitz Decl. ¶ 3 and Ex. B. For these same reasons, this altered exhibit
   19   is also not a “generally known” adjudicative fact. Fed. R. Evid. 201. Accordingly,
   20   the Court should not consider Exhibit 2.
   21             C. Exhibit 3 to the Chestnut Declaration: Letter Agreement
   22         Exhibit 3 purports to be excerpts from an August 24, 2020 “Letter
   23   Agreement” between BofA and EDD. RJN at 5. The document is not incorporated
   24   by reference into the MCC, which does not reference or rely upon Exhibit 3 at all,
   25   let alone “extensively.” Ritchie, 342 F.3d at 908 (district court could not rely on
   26

   27   2Plaintiffs’ RJN separately requests the Court to consider the copy of excerpts of
        the EDD-BofA Agreement attached as Exhibit B to the Danitz Declaration. See
   28
        Plaintiffs’ RJN at 1-2; Danitz Decl., Ex. B.
        Pltffs’ Opposition to Request for Judicial Notice ISO Motion to Dismiss;
        Case No. 3:21-md-02992-LAB-MSB                                                3
Case 3:21-md-02992-GPC-MSB       Document 90-2     Filed 11/15/21    PageID.726     Page 5
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    1   extrinsic declaration to which plaintiff’s complaint did not “extensively” refer);
    2   Khoja, 899 F.3d at 1002 (“[I]f the document merely creates a defense to the well-
    3   pled allegations in the complaint, then that document did not necessarily form the
    4   basis of the complaint.”); cf. In re Immune Response Sec. Litig., 375 F. Supp. 2d
    5   983, 995 (S.D. Cal. 2005) (declining to consider documents that were referenced in
    6   the complaint when offered as evidence in defense of securities claims, finding that
    7   “considering these documents as part of the pleadings at this stage would expand
    8   the ‘narrow exception’ and eliminate the distinction between a motion for summary
    9   judgment and a motion to dismiss”).
   10         Nor is Exhibit 3 subject to judicial notice. Exhibit 3 is not “generally known”
   11   or capable of “ready determination from sources of unquestionable accuracy.”
   12   Sporting Supplies Int’l, Inc. v. Tulammo USA, Inc., 2012 WL 12892310, at *2 (C.D.
   13   Cal. Mar. 5, 2012); see also Nash v. Wachovia Bank, 2016 WL 4771027, at *1 n.4
   14   (E.D. Cal. Sept. 14, 2016) (“The contract is not part of the complaint and may be
   15   subject to reasonable dispute and therefore is not properly subject to judicial
   16   notice.”). If the Court were to consider the existence of Exhibit 3, it should not
   17   consider its contents which raise disputed issues of fact. For example, BofA
   18   contends that the August 2020 “Letter Agreement” modified certain contractual
   19   obligations under the 2015 EDD-BofA Contract, but whether the “Letter
   20   Agreement” was itself modified or superseded by other agreements is a factual issue
   21   that cannot be resolved on a Rule 12(b)(6) motion. Accordingly, the Court should
   22   not consider Exhibit 3. N. Cty. Transit Dist. v. Atlantic Richfield Co., 2006 WL
   23   8455571, at *4 (S.D. Cal. Sept. 27, 2006) (“While the Court may take judicial notice
   24   of the existence of a contract, it may not take notice of the contents or terms of the
   25   contract. The Court, therefore, declines to take judicial notice of the terms of the
   26   subject Purchase Agreement.”) (citations omitted); see also Immune Response, 375
   27   F.Supp.2d at 995 (“Furthermore, consideration of the exhibits encourages a
   28   weighing of factual disputes; a process that is improper on a motion to dismiss.”).

        Pltffs’ Opposition to Request for Judicial Notice ISO Motion to Dismiss;
        Case No. 3:21-md-02992-LAB-MSB                                                  4
Case 3:21-md-02992-GPC-MSB       Document 90-2     Filed 11/15/21   PageID.727     Page 6
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    1      III.   CONCLUSION
    2         For the foregoing reasons, Plaintiffs respectfully request that the Court
    3   deny the Request for Judicial Notice in its entirety.
    4   Dated: November 15, 2021         COTCHETT, PITRE & McCARTHY, LLP
    5                                    By:    /s/ Brian Danitz
                                                JOSEPH W. COTCHETT
    6                                           BRIAN DANITZ
                                                KARIN B. SWOPE
    7                                           ANDREW F. KIRTLEY
                                                KAIYI A. XIE
    8
        Dated: November 15, 2021         ALTSHULER BERZON LLP
    9
                                         By:    /s/ Michael Rubin
   10
                                                MICHAEL RUBIN
   11                                           STACEY M. LEYTON
                                                MATTHEW MURRAY
   12                                           CONNIE K. CHAN
                                                CHRISTINE M. SALAZAR
   13
                                         Co-Lead Counsel for Plaintiffs and the
   14                                    Proposed Class
   15
        DAVID S. CASEY, JR. (SBN 060768)           JOSHUA B. SWIGART (SBN 225557)
   16   dcasey@cglaw.com                           josh@swigartlawgroup.com
   17   GAYLE M. BLATT (SBN 122048)                JULIANA G. BLAHA (SBN 331066)
        gmb@cglaw.com                              juliana@swigartlawgroup.com
   18   JEREMY ROBINSON (SBN 188325)               SWIGART LAW GROUP, APC
   19   jrobinson@cglaw.com                        2221 Camino Del Rio South
        P. CAMILLE GUERRA (SBN 326546)             Suite 308
   20   camille@cglaw.com                          San Diego, CA 92108
   21   CATHERINE McBAIN (SBN 303911)              (866) 219-3343
        kmcbain@cglaw.com                          Fax: (866) 219-8344
   22   CASEY GERRY SCHENK
   23   FRANCAVILLA BLATT &                        DANIEL G. SHAY (SBN 250548)
        PENFIELD, LLP                              danielshay@tcpafdcpa.com
   24   110 Laurel Street                          LAW OFFICE OF DANIEL G. SHAY
   25   San Diego, CA 92101                        2221 Camino Del Rio South, Suite 308
        Telephone: (619) 238-1811                  San Diego, CA 92108
   26   Fax: (619) 544-9232                        Telephone: (619) 222-7429
   27                                              Fax: (866) 431-3292

   28   Liaison Counsel for Class Plaintiffs       Liaison Counsel for Individual Plaintiffs

        Pltffs’ Opposition to Request for Judicial Notice ISO Motion to Dismiss;
        Case No. 3:21-md-02992-LAB-MSB                                                    5
Case 3:21-md-02992-GPC-MSB       Document 90-2     Filed 11/15/21   PageID.728     Page 7
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    1                            SIGNATURE ATTESTATION
    2         Pursuant to Section 2(f)(4) of the Electronic Case Filing Administrative
    3   Policies and Procedures Manual, I, Brian Danitz, hereby certify that the content of
    4   this document is acceptable to all the signatories herein and that I have obtained
    5   counsel’s authorization to affix their electronic signatures to this document.
    6

    7
                                                      /s/ Brian Danitz
                                                      BRIAN DANITZ
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        Pltffs’ Opposition to Request for Judicial Notice ISO Motion to Dismiss;
        Case No. 3:21-md-02992-LAB-MSB                                                   6


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