A California woman’s long-standing legal battle against a major financial institution has been dismissed, bringing an end to her claims of deceptive home loan practices. Diana Gray initially filed the complaint in Los Angeles County Superior Court on November 5, 2018, against Citigroup, Inc., and its affiliates.
Diana Gray, along with 67 other plaintiffs, accused Citigroup and Citibank of engaging in fraudulent activities related to their home loans. The original complaint included allegations of intentionally placing borrowers into unaffordable loans through deceptive tactics, inflating appraisals to qualify borrowers for these loans, market fixing, deception in loan modifications, and unauthorized foreclosures. The case was initially removed to federal court due to a Sherman Anti-trust Act claim but was remanded back to state court after the plaintiffs dismissed that particular claim.
Gray's case faced numerous procedural hurdles over the years. In 2019, an appellate court reversed an earlier dismissal caused by her then-counsel’s failure to oppose demurrers or file an amended complaint. Despite this victory, the trial court dismissed Gray’s case again on March 1, 2023, for failing to bring it to trial within five years as mandated by California law. On appeal, Gray argued that the five-year period should exclude times when it was impossible or impracticable to proceed due to various reasons including her counsel's suspension and delays caused by the COVID-19 pandemic.
The trial court acknowledged some tolling periods—such as the time during which the case was removed to federal court and during Gray's previous appeal—but ultimately found that Gray did not meet her burden of proving additional tolling periods were warranted. Specifically, the court and Justices Lee, Moor and Kim rejected her arguments regarding her former counsel’s suspension and COVID-related delays. It noted that despite these challenges, Gray had ample time post-appeal (nearly three years) to bring her case to trial but failed to do so.
Gray sought relief from these procedural dismissals through appeals and motions but was consistently met with judicial resistance. Her final appeal contended that various delays should extend her statutory deadline until November 5, 2026—13 years after filing—but this argument did not persuade the courts.
Represented by Jesse J. Thaler from Thaler Law, Gray faced opposition from Bryan Cave Leighton Paisner attorneys Alexandra C. Whitworth, Adam Vukovic, and Anna Donald representing Citibank. The case was presided over by Judge Robert S. Draper in Los Angeles County Superior Court under Case ID BC526888.