DANIEL P. KLAHN, SR.;, LAURIE KLAHN, Plaintiffs,
SANTANDER CONSUMER USA, INC., Defendant.
Daniel P. Klahn, Sr., Laurie Klahn, Portalnd, Oregon, Pro Se Plaintiffs.
J. Owen Campbell, Severson & Werson, Irvine, California, Attorneys for Defendant.
OPINION AND ORDER
GARR M. KING, District Judge.
Pro se plaintiffs Daniel P. Klahn, Sr. and Laurie Klahn, a married couple, bring this case against Santander Consumer USA, Inc. ("Santander") for its actions while trying to collect the debt incurred when the Klahns purchased a Winnebago recreational vehicle. This dispute has traveled through numerous courthouses in two states. Before the court is Defendant Santander Consumer USA, Inc.'s Motion for Summary Judgment . For the reasons below, I grant the motion and dismiss this case with prejudice.
The Klahns bought a Winnebago in 2006 under an installment sales contract with the dealer. The dealer assigned the contract and security interest to Thor Credit Corporation, which subsequently assigned it to GEMB Lending, Inc. ("GEMB"). Laurie Klahn is the actual purchaser of the Winnebago; Daniel Klahn is not a party to the sales contract. The Winnebago is registered to Laurie Klahn alone.
GEMB repossessed the Winnebago in February 2011. The Klahns redeemed the loan on March 6, 2011 and picked up the vehicle. They also allegedly made March and April payments to GEMB.
Santander purchased the loan on March 1, 2011. According to its records, the loan has been past due since April 1, 2011.
Santander telephoned the Klahns on March 26, 2011 to complain the loan was past due 45 days. The long-running dispute between Santander and the Klahns is based on whether the Klahns made the March and April 2011 payments to GEMB and whether GEMB turned those payments over to Santander.
On March 20, 2012, Santander sued Laurie Klahn for breach of contract in the Superior Court of California for the County of Alameda. Santander Consumer USA, Inc. v. Laurie A. Klahn, No. HG12622151 ("California Action"). On March 22, 2013, that Court entered a Judgment by Default against Laurie Klahn for the principal of $64, 632.55, attorney fees of $48, 713.25, interest of $11, 506.31, and costs of $395.00.
The Klahns allege three claims for relief in this action. In the first claim, the Klahns allege Santander is negligent by failing to use reasonable care in refusing to transfer the Winnebago's title from California to Oregon in August 2011 and in refusing to accept payments or send monthly billing statements since then.
The Klahns' second claim is for breach of a fiduciary and confidential relationship duty. They allege Santander breached its duty by disclosing the status of the loan on the Winnebago to noninterested third parties from April 2011 through January 2012.
In the third claim, the Klahns allege Santander breached the implied covenant of good faith and fair dealing through its ...