6DCA Oral Argument - 2026/04/16 Afternoon Session - Apr 16, 2026
argument6DCA Oral Argument - 2026/04/16 Afternoon Session
California Sixth District Court of Appeal
22 min
8 chapters
transcribed 10 days ago
official recording ↗
Transcript
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What is the case and procedural background for the Fails v. Select Portfolio Servicing hearing?
Council, you can churn. You can turn your cameras on and and microphones. We'll get started shortly. Thank you.
Well, can you see the courtroom?
Yes.
That'd be great. Thank you.
I'm giving it to the power too.
And good afternoon. Um but we'll come into session this afternoon for our one case on calendar, Fails versus Select Portfolio Servicing and others. And I see that both council are appearing remotely this afternoon, so good afternoon. I hope you can hear us and we're pleased that you can take advantage of um this opportunity to appear. Uh I will go ahead and invite your appearances and time estimates and uh then we can proceed with our argument.
Yes. Uh good afternoon. My name is Sarah Shapiro and I'm counsel for the appellant William Fails and I think my opening argument will be two or three minut three minutes.
All right, and then you would like to reserve the remainder or sometime after for rebuttal? Yes. Okay, very good. And for our respondent.
Good afternoon. I'm Steve Daly of QTAC Rock. I'm here on behalf of a respondent. And what is your time estimate, Mr. Daly? Um probably about ten minutes, depending on what's raised and opening.
Okay. Very good. Then Miss Shapiro, whenever you're ready, you can go ahead.
Thank you. Uh good afternoon, your honours, and may it please the court. Uh this case is simple uh as to whether or not the court erred in denying plaintiff leave to amend uh his second amended complaint and granting the demur.
How does appellant counsel Sarah Shapiro frame the argument on denial of leave to amend?
uh without leave to amend. The crux of this case is set forth in the opening brief and the uh response brief is whether or not plaintiff pleaded his claims with particularity. Uh and While we While we contend that his claims were pled with particularity, even if they were not, the court must have granted plaintiff leave to amend to give plaintiff the opportunity to do so. Instead, the court dismissed all of plaintiff's claims without leave to amend. uh on the finding that the ground that the allegations were not particularly alleged. Um, as set forth in our opening brief ad nauseum, plaintiff could have cured any ple pleading defects via amendment. First, uh turning to the twenty nine twenty four point seventeen claim, as defendant points out er respondent points out in its uh response brief, appellants claims uh did not allege that he was current at the time of the misapplied payments in May of twenty twenty two.
However, that easily could have been fixed on amendment. As is the same with plaintiff's uh twenty nine twenty four A one B claim. Any perceived issues with these claims, in the particularity of the uh pleadings at issue, could have been fixed by amendment, but plaintiff was not given the opportunity to do so. Uh and lastly, the negligence and unfair competition law and cancellation of instrument claims are all predicated on the uh the statutory claims that plaint uh that had plaintiff been given leave to amend, he could have survived a uh a demur and any challenge to the pleadings. Uh That leaves only the last claim for uh declaratory relief and as set forth in our reply brief, uh Plaintiff has articulated a issue, uh between a judiciable issue between the parties as to
uh the accounting and the application of payments such that the d declaratory relief claim also should not have been dismissed without leave to amend. And Therefore we ask that the court uh Overturn the lower courts ruling and either. А uh issue an order indicating that the uh demur sorry the pleading was sufficient or that plaintiff should have been given leave to amend. And with that I'll reserve the remaining time for my rebuttal.
All right, thank you. I'm not seeing any other questions for you at this time. Uh so Mr. Daly, if you're ready, go ahead please.
Yes, thank you, Your Honors. Um I've defended this case since October of twenty twenty three and I've always thought this case was a lot of polobaloo over nothing. Um
I'm sorry. Mr.
What statutory requirements does the appellant claim were met in the pleadings?
Daly. I I you know we can we can have a reasoned discussion about the pleadings and and How it's played. And defense of the trial court order, but
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Chapters
8 chapters
1
What is the case and procedural background for the Fails v. Select Portfolio Servicing hearing?
0:07–3:36
2
How does appellant counsel Sarah Shapiro frame the argument on denial of leave to amend?
3:36–6:40
3
What statutory requirements does the appellant claim were met in the pleadings?
6:40–9:04
4
How does respondent counsel Steve Daly argue the plaintiff’s claims lack particularity?
9:04–11:45
5
Why does the dispute over the May 2022 check matter to the default analysis?
11:45–14:34
6
What is the significance of the 29 CFR 24.17 and 24.A‑1‑B statutes in this case?
14:34–16:43
7
How do the parties address issues of mitigation, prejudice, and materiality?
16:43–19:25
8
What conclusions did the court reach and what are the next steps after the oral argument?
19:25–22:12
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