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Defendants' Opposition to Motion for Preliminary Injunction, Wells Fargo Bank, Nat'l Ass'n v. City of Richmond, No. CV-13-3663-CRB (Aug. 22, 2013)

Defendants' Opposition to Motion for Preliminary Injunction, Wells Fargo Bank, Nat'l Ass'n v. City of Richmond, No. CV-13-3663-CRB (Aug. 22, 2013)

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Defendants' Opposition to Motion for Preliminary Injunction, Wells Fargo Bank, Nat'l Ass'n v. City of Richmond, No. CV-13-3663-CRB (Aug. 22, 2013)
Defendants' Opposition to Motion for Preliminary Injunction, Wells Fargo Bank, Nat'l Ass'n v. City of Richmond, No. CV-13-3663-CRB (Aug. 22, 2013)

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Defendants’ Opposition to Motion for Preliminary Injunction, Case No. CV
-13-3663-CRB
12345678910111213141516171819202122232425262728STEPHEN P. BERZON (SBN 46540)SCOTT A. KRONLAND (SBN 171693)JONATHAN WEISSGLASS (SBN 185008)ERIC P. BROWN (SBN 284245)Altshuler Berzon LLP177 Post Street, Suite 300San Francisco, CA 94108Tel: (415) 421-7151Fax: (415) 362-8064E-mail: sberzon@altber.comskronland@altber.com jweissglass@altber.comebrown@altber.comAttorneys for Defendants
City of Richmond 
and
 Mortgage Resolution Partners LLC 
 BRUCE REED GOODMILLER (SBN 121491)City AttorneyCARLOS A. PRIVAT (SBN 197534)Assistant City AttorneyCITY OF RICHMOND450 Civic Center PlazaRichmond, CA 94804Telephone: (510) 620-6509Facsimile: (510) 620-6518E-mail: bruce_goodmiller@ci.richmond.ca.uscarlos_privat@ci.richmond.ca.usAttorneys for Defendant
City of Richmond 
 WILLIAM A. FALIK (SBN 53499)100 Tunnel RdBerkeley, CA 94705Tel: (510) 540-5960Fax: (510) 704-8803E-mail: billfalik@gmail.comAttorney for Defendant
 Mortgage Resolution Partners LLC 
 
UNITED STATES DISTRICT COURTNORTHERN DISTRICT OF CALIFORNIASAN FRANCISCO DIVISION
WELLS FARGO BANK, NATIONALASSOCIATION, as Trustee,
et al 
.,Plaintiffs,v.CITY OF RICHMOND, CALIFORNIA, amunicipality, and MORTGAGERESOLUTION PARTNERS LLC,Defendants.Case No. CV-13-3663-CRB
DEFENDANTS’ OPPOSITION TO
MOTION FOR PRELIMINARYINJUNCTION
Date: September 13, 2013Time: 10:00 a.m.Judge: Honorable Charles R. Breyer Courtroom 6, 17th Floor 
Case3:13-cv-03663-CRB Document32 Filed08/22/13 Page1 of 40
 
 
i
Defendants’ Opposition to Motion for Preliminary Injunction, Case No. CV
-13-3663-CRB
12345678910111213141516171819202122232425262728
TABLE OF CONTENTS
TABLE OF AUTHORITIES ........................................................................................................... iiSUMMARY OF ARGUMENT ..................................................................................................... viiBACKGROUND ............................................................................................................................. 1A. The Underwater Mortgage Crisis in the City .......................................................... 1B.
The City’s Search for Solutions
.............................................................................. 2C.
California’s Eminent Domain Law
......................................................................... 4D.
The Banks’ Lawsuit
................................................................................................. 5ARGUMENT .................................................................................................................................. 5I.
The Court Lacks Jurisdiction To Hear The Banks’ Claims
.................................... 5II. The Banks Have Not Satisfied Any Of The Criteria For ObtainingA Preliminary Injunction ....................................................................................... 11A. The Banks lack a probability of prevailing on claims that arenot justiciable ............................................................................................. 11B. The Banks have not established irreparable harm ..................................... 11C. The people of the City of Richmond would suffer irreparableharm if the Court granted an injunction .................................................... 15D. The public interest would be harmed if the Court stifled publicdebate and interfered with the operations of municipalgovernment ................................................................................................ 16E. The Banks lack a probability of prevailing on the merits of their substantive legal arguments .............................................................. 171. The loans are located within the City's jurisdictionfor purposes of the City's eminent domain power ......................... 172. Condemnation of mortgage loans would be for publicuse .................................................................................................. 213. Condemnation of mortgage loans would not violatethe Dormant Commerce Clause ..................................................... 244. Condemnation would not violate the Contract Clause .................. 27CONCLUSION ............................................................................................................................. 27
Case3:13-cv-03663-CRB Document32 Filed08/22/13 Page2 of 40
 
 
ii
Defendants’ Opposition to Motion for Preliminary Injunction, Case No. CV
-13-3663-CRB
12345678910111213141516171819202122232425262728
TABLE OF AUTHORITIESPage(s)Federal Cases
 Abbott Labs. v. Gardner 
,
387 U.S. 136 (1967)………
.
…………………………………………………………………..9
 
 Aetna Life Ins. Co. v. Haworth
,300 U.S. 227 (1937) .................................................................................................................. 5
 Alliance for the Wild Rockies v. Cottrell 
,632 F.3d 1127 (9th Cir. 2011) ................................................................................................. 11
 Armendariz v. Penman
,75 F.3d 1311 (9th Cir. 1996) ..................................................................................................... 8
 Baldwin v. Missouri
,281 U.S. 586 (1930) ................................................................................................................ 21
 Berman v. Parker 
,348 U.S. 26 (1954) ............................................................................................................ 22,23
 Brown v. Kennedy
,82 U.S. 591 (1872) .............................................................................................................. x,19
C & A Carbone, Inc. v. Clarkstown
,511 U.S. 383 (1994) ................................................................................................................ 24
Califano v. Sanders
,
430 U.S. 99, 105 (1977)………………………………………………………………………9
 
Carpenter v. Longan
,83 U.S. 271 (1872) .................................................................................................................. 18
Chicago, Rock Isl. & Pac. Ry. Co. v. Sturm
,174 U.S. 710 (1899) ................................................................................................................ 20
Cities Service Co. v. McGrath
,342 U.S. 330 (1952) ................................................................................................................ 19
City of Cincinnati v. Louisville & Nashville Railroad Co.
,223 U.S. 390 (1912) ................................................................................................................ 27
City of Los Angeles v. Lyons
,461 U.S. 95 (1983) .................................................................................................................. 10
Cottonwood Christian Ctr. v. Cypress Redevelopment Agency
,218 F. Supp. 2d 1203 (C.D. Cal. 2002) ..................................................................................... 8
Case3:13-cv-03663-CRB Document32 Filed08/22/13 Page3 of 40

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