Balderas vs Countrywide – Federal Appeals Court Reverses Dismissal
By Daniel Edstrom
DTC Systems, Inc.
You do not have to win your case to survive the motions to dismiss, you only need to allege facts to support a theory that is not facially implausible. Here is the last paragraph from this ruling:
[9] As we’ve said before, “so long as the plaintiff alleges facts to support a theory that is not facially implausible, the court’s skepticism is best reserved for later stages of the proceedings when the plaintiff case can be rejected on evidentiary grounds.” In re Gilead Sciences Securities Litigation, 536 F.3d 1049, 1057 (9th Cir. 2008). Here, the Balderases clearly alleged in their complaint that they were never given a Notice of Right to Cancel that complied with TILA. If they can prove up this allegation at trial, they’ll win. A complaint containing allegations that, if proven, present a winning case is not subject to dismissal under 12(b)(6), no matter how unlikely such winning outcome may appear to the district court.
REVERSED and REMANDED.
Download ruling here: http://dtc-systems.net/wp-content/uploads/2011/12/Balderas-v.-Countrywide.pdf