However, in order to exercise this right, the rescinding party must, “promptly upon discovering the facts which entitle him to rescind … [g]ive notice of rescission [and r]estore the other party everything of value which he has received from him under the contract.” Cal. Civ. Code § 1691 (emphasis added). Here, the Complaint admits that Plaintiff did not give prompt notice or restore the value received.

In effect, he seeks to rescind the transaction. California Civil Code sections 1691-1693 provide requirements for rescission, including an offer to return the consideration. Florida law is likely similar; these requirements were developed in the courts of equity in England. We don’t yet know what happened to the chips; for all we know, after reading the ingredient list, plaintiff went right on consuming them.

The party seeking rescission of a voidable contract must (1) give notice of the rescission, and (2) restore anything of value received. Cal. Civ. Code. § 1691; see also Burgess, 44 Cal. App. 2d at 818 (“In Case 2:09-cv-05429-GHK-RZ Document 60 Filed 10/05/09 Page 10 of 18 Page ID #:876 MORGAN, LEWIS & BOCKIUS LLP ATTORNEYS AT LAW LOS ANGELES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DB2/21344071.2 7 MEMORANDUM OF POINTS AND AUTHORITIES ISO DEFENDANTS' MTN TO COMPEL ARBITRATION case of a person not entirely without understanding, a suit for rescission may be brought, or the contract may be rescinded by the act of the party himself. But in accordance with the general rules, he must restore everything of value received, or offer to do so.”)

Nothing can call forth this Court into activity, but conscience, good faith and reasonable diligence. When these are wanting, the court is passive and does nothing; lathes and neglect are always discountenanced"); California Civil Code § 1691; Estrada v. Alvarez, 38 Cal.2d 386, 391 (1952) ("The right to rescind is lost by delay because diligence is a condition of the right to rescind, and there have been many cases in which delays for much shorter periods than a year have been held to be fatal to the right to rescind," citations and internal quotation marks omitted).

Should this Court deem California law applicable, California provides similar elements, in particular, a required offer to restore any benefits received from the contract. Cal. Civ. Code § 1691. Case 8:15-cv-02675-SDM-MAP Document 65 Filed 02/03/17 Page 3 of 6 PageID 398 4 13.

111 And no offer to restore is necessary when the transactions between the parties are so complicated an accounting is necessary to determine the parties’ respective rights,112 or when, because of no fault of the rescinding party, restoration cannot be made.113 110 See Mattei v. Hopper, 51 Cal. 2d 119, 122-123 (1958) (a promise is illusory and it provides no consideration if one party is free to perform or withdraw); see also Morrison v. Amway Corp., 517 F.3d 248, 255 (5th Cir.2008) (declining to enforce under Texas law an arbitration clause inserted under clause allowing Amway to unilaterally modify the agreement). 111 Cal. Civ. Code § 1691 see also Cal. Civ. Code § 1693.

If Plaintiff by this cause of action, seeks rescission, then he must tender the funds distributed under the Notes. Cal. Civ. Code § 1691. Plaintiff has not done so here.

1638 (a) ........................................................................................................................15 15 U.S.C. § 1638 (b)........................................................................................................................15 15 U.S.C. § 1638 (c) ........................................................................................................................15 15 U.S.C. § 1640(e) .....................................................................................................................9, 15 15 U.S.C. § 1641(e) .........................................................................................................................16 15 U.S.C. § 1641(f)(1)...............................................................................................................10, 15 15 USC § 1601...................................................................................................................................1 Cal. Civ. Code § 1691(b)...................................................................................................................6 Case 2:10-cv-02928-WBS-GGH Document 18 Filed 12/17/10 Page 7 of 26 681593.02/ 0317023 vii MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF DEFENDANT’S MOTION TO DISMISS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B r ya n C a v e L L P 2 E m b a r c a d e r o C e n t e r , S u it e 1 4 1 0 S a n F r a n c is c o , C a l if o r n ia 9 4 1 1 1 Cal. Civ. Proc. Code § 335.1 ...........................................................................................................16 Cal. Civ. Proc. Code § 338(d)..........................................................................................................11 Cal. Civ. Proc. Code §§ 761.020(a)-(e) .............................................................................................6 OTHER AUTHORITIES 1 B.E.

These are really state law tort claims, and therefore, the Federal Claims are incidental to those. Case3:09-cv-04211-JL Document25 Filed11/04/09 Page1 of 3 M IC H A E L R O O N E Y L A W O F F IC E 5 80 C al ifo rn ia S tr e et F L 16 S a n F ra nc is co , C A 9 4 10 4 2 PLAINTIFF DANNIE A. GUERRERO and TRACEY POUEU-GUERR ERO REPLY TO AURORA LOAN SERVICES, LLC's OPPOSITION TO PLAINTIFF'S REMAND TO STATE COURT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Rather, An Accounting, Unfair Competition, Declaratory Relief, Unfair Debt Collection, Emotional Distress, Breach of Broker's Duty to Disclo e, Slander of Title, Wrongful Foreclosure and Rescission (which is available at California Civil Code § 1691; see also: §1693 regarding tender) form the basis of the complaint. The great m jority of the complaint is state law, and the heart of the claims are of the type state courts are more interested in.