Unreported / Non-Citable
Background
Plaintiffs Jose Gabriel Castro-Urdiales and Lucia R. Matallana brought this action against LoanCare, LLC and Lakeview Loan Servicing, LLC, and are proceeding without lawyers. Because the plaintiffs are pro se, the case was referred to the undersigned magistrate judge for pretrial matters under Eastern District of California Local Rule 302(c)(21). Defendants removed the case to federal court on December 24, 2025.
Defendants moved to dismiss, and the court granted that motion but gave plaintiffs an opportunity to file an amended complaint. On August 28, 2026, the court notified plaintiffs that they had 30 days to file their amended complaint. Plaintiffs did not file one. On October 5, 2026, the court issued an order requiring plaintiffs to show cause within 14 days why the case should not be dismissed for failure to prosecute. Plaintiffs did not respond to that order and took no action to prosecute the case. The findings and recommendations are dated October 23, 2026, and were filed on October 26, 2026.
The Court’s Holding
In recommending dismissal for failure to prosecute, the magistrate judge applied the five factors from Ferdik v. Bonzelet, 963 F.2d 1258, 1260-61 (9th Cir. 1992): the public's interest in expeditious resolution of litigation, the court's need to manage its docket, the risk of prejudice to the defendants, the public policy favoring disposition of cases on their merits, and the availability of less drastic alternatives. Because the case cannot move forward without the plaintiffs' participation, the court found those factors weigh in favor of dismissal.
The court therefore recommended that the action be dismissed without prejudice for lack of prosecution and for failure to comply with the court's order, citing Federal Rule of Civil Procedure 41(b) and Local Rule 110.
This is a recommendation, not a final dismissal. The findings and recommendations were submitted to the United States District Judge assigned to the case under 28 U.S.C. § 636(b)(1). Within 21 days after service, plaintiffs may file written objections captioned 'Objections to Magistrate Judge's Findings and Recommendations' under Local Rule 304(d), and the court warned that failure to object within that time may waive the right to appeal the District Court's order, citing Martinez v. Ylst, 951 F.2d 1153 (9th Cir. 1991).
Key Takeaways
- A magistrate judge recommended dismissing this pro se case without prejudice after plaintiffs missed both the amended-complaint deadline and an order to show cause.
- The court applied the five Ferdik v. Bonzelet factors and found they favored dismissal because the case could not proceed without the plaintiffs' participation.
- The recommendation rests on Federal Rule of Civil Procedure 41(b) and Eastern District of California Local Rule 110.
- Because the dismissal would be without prejudice, plaintiffs could potentially refile, but only if the assigned district judge adopts the recommendation.
- Plaintiffs have 21 days from service to file written objections, and failing to object may waive their right to appeal the district court's eventual order.
Why It Matters
This findings and recommendations illustrates how federal courts handle pro se cases that stall after removal: even after granting leave to amend and issuing an order to show cause, a court will recommend dismissal when plaintiffs stop participating entirely. The without-prejudice character of the recommended dismissal preserves the plaintiffs' ability to pursue their claims later, but the case cannot occupy the court's docket indefinitely.
The document also shows the two-step nature of magistrate judge recommendations in the Eastern District of California. The magistrate judge does not dismiss the case outright; the recommendation goes to the assigned district judge, and the parties have a 21-day window to object. The express warning that failing to object may waive appellate rights, drawn from Martinez v. Ylst, is a standard but consequential notice for pro se litigants who may not understand the objections process.