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Law&MotionDepartmentTentativeRulings(Friday)

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CIV535902

REGINAMANANTANVS.WELLSFARGOBANK,N.A.,ETAL.

REGINAMANANTAN TIMOTHYL.MCCANDLESS
WELLSFARGO
BANK,N.A.

BRIANS.WHITTEMORE

JOINDEROFQUALITYLOANSERVICECORPORATIONTODEFENDANTSDEMURRERSTO
PLAINTIFFSSECONDAMENDEDCOMPLAINT
TENTATIVERULING:

DefendantQualityLoanServiceCorporationsJoindertoDefendantsWells
FargoBank,N.A.DBAAmericasServicingCompanyandU.S.Bank,N.A.,as
Trustee,successorininteresttoBankofAmerica,NationalAssociationas
Trustee,successorbymergertoLaSalleBank,NationalAssociationas
TrusteeforMorganStanleyMortgageLoanTrust20077AXsDemurrerto
PlaintiffsSecondAmendedComplaintisGRANTED.Thisjoiningdefendant
benefitsfromtheimmunityprovisionsfoundatCivilCode2924(b)because
Plaintiffhasfailedtopleadmaliceonthepartofthisdefendant.

Ifthetentativerulingisuncontested,itshallbecometheorderof
theCourt,pursuanttoCRCRule3.1308(a)(1),adoptedbyLocalRule
3.10.Ifthetentativerulingisuncontested,prevailingpartyis
directedtoprepare,circulateandsubmitawrittenorderreflecting
thisCourtsrulingverbatimfortheCourtssignature,consistent
withtherequirementsofCRCRule3.1312.Theproposedorderisto
besubmitteddirectlytoJudgeJonathanE.Karesh,Department20.

DEMURRERTOSECONDAMENDEDCOMPLAINTOFMANANTANBYWELLSFARGOBANK,N.A.
DBAAMERICA'SSERVICINGCOMPANYANDU.S.BANK,N.A.ASTRUSTEE,SUCCESSOR
BYMERGERTOLASALLEBANK,NATIONALASSOCIATION,ASTRUSTEEFORMORGAN
STANLEYMORTGAGELOANTRUST20077AX
TENTATIVERULING:

DefendantsWellsFargoBank,N.A.DBAAmericasServicingCompanyandU.S.
Bank,N.A.,asTrustee,successorininteresttoBankofAmerica,National
AssociationasTrustee,successorbymergertoLaSalleBank,National
AssociationasTrusteeforMorganStanleyMortgageLoanTrust20077AXs
DemurrertoPlaintiffsSecondAmendedComplaintisOVERRULEDastocause
ofactionnos.1,2,3,4,6and8.TheDemurrerisSUSTAINEDwithleave
toamendastocauseofactionno.5andSUSTAINEDwithoutleavetoamend
tocauseofactionno.7.

TheSecondAmendedComplaintsufficientlypleadedfactstosupportthe
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first,second,third,fourth,sixthandeighthcausesofactionforbreach
ofsecurityinstrument,wrongfulforeclosure,fraud,unfairbusiness
practices,settingasideTrusteessaleandquiettitle,respectively.

Tenderisnotrequiredwheretheforeclosuresaleisvoid,ratherthan
voidable,suchaswhenaplaintiffprovesthattheentitylackedthe
authoritytoforeclose.Glaskiv.BankofAmerica(2013)218Cal.App.4th
1079,1100.

Withregardtothefirstcauseofaction,theSecondAmended
Complaintsufficientlystatesaclaimforbreachofsecurity
instrument,specificallyviolationof22ofthe2007DeedofTrust,
whichrequiredacertainamountofnoticebegiventotheborrower
beforeaNoticeofDefaultcouldberecorded.(SACpara.69.)

Withregardtothesecondcauseofactionforwrongfulforeclosure,
theSecondAmendedComplaintsufficientlystatesaclaimthat
PlaintiffandDefendantWellsFargowereintalksaboutaloan
modificationin2015whentheHomeownersBillofRightswasin
effectandseveralviolationsoccurred,including:(a)thestatusof
theloanwasinactiveloanmodificationreviewwhentheNoticeof
TrusteesSalewasrecordedandtheforeclosuresaletookplace,thus
Defendantsweredualtracking,(b)thePlaintiffrequestedfrom
DefendantWellsFargo,butneverreceivedasinglepointofcontact
and(c)DefendantWellsFargodidnotsendanyacknowledgementof
denialofthemodificationapplicationwithanoticeofthedeadline
toappeal.(SACparas.34,37,39,45.)

Withregardtothethirdcauseofactionforfraud,theSecondAmended
Complainthassufficientlyallegedfactsfornegligent
misrepresentation:(1)DefendantWellsFargoneverdisclosedthatitwas
notthelender,northattograntaloanmodificationWellsFargowould
havetoenterintoanunfavorablefinancialtransaction,contrarytoits
interests,(2)WellsFargowasawareofthisfalsity,(3)WellsFargo
intendedtodefraudPlaintiff,asevidencedbyitsfailuretooffera
modificationtowhichPlaintiffwasentitled,(4)Plaintiffjustifiably
reliedonDefendantWellsFargosmisrepresentationand(5)Plaintiff
suffereddamages.(SACpara.114.)

WithregardtothefourthcauseofactionforviolationofB&P17200,the
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SecondAmendedComplaintsufficientlyallegesotherpredicateclaimsupon
whichtobaseaclaimoffraudulent,unfairordeceptivebusiness
practices.

WithregardtothesixthcauseofactiontosetasidetheTrusteessale,
theSecondAmendedComplaintallegesthattheTrustee'sDeedisvoid(SAC
paras.62,147)andnotvoidable,thustherewasnosaleatallandthe
partiesareunabletoratifythesale.

Atrustorhasnorighttosetasideatrustee'sdeedasagainstabona
fidepurchaserforvaluebyattackingthevalidityofthesale.Homestead
Savingsv.Darmiento(1991)230Cal.App.3d424,436.However,Plaintiff
doesnotattacktheprocedureofthesale,butratherthatthesellerdid
nothaveavalidtitletoconveyviasale.

TherecentcaseofYvanovav.NewCenturyMortg.Corp.(2016)199
Cal.Rptr.3d66givesthePlaintiffstandingtosuebasedonquestionable
transfersinthechainoftitleoftheDeedofTrustandrecognizesthat
theborrowercanbedamagedbynotknowingwhoholdstheDeedofTrustfor
his/herhouse.

Withregardtotheeighthcauseofaction,theSecondAmendedComplaint
sufficientlypleadsaclaimforquiettitletoestablishtitlebetween
adverseclaimants.TheforeclosuresalehasplacedacloudonPlaintiffs
titletotheproperty.

TheSecondAmendedComplaintdidnotsufficientlypleadfactstosupport
thefifthandseventhcausesofactionforintentionalinflictionof
emotionaldistressandslanderoftitle,respectively.

Withregardtothefifthcauseofactionforintentionalinflictionof
emotionaldistress,theSecondAmendedComplaintfailstostateaclaim
becauseitdoesnotcontainsufficientallegationsthatanyoneintended
tocauseoractedwithrecklessdisregardoftheprobabilityofcausing
emotionaldistresstoPlaintiff.Para.64allegesthedamagescommonto
allclaims,whichincludefinancialissues,includingthatPlaintiffhas
suffereddamagetohercredit,overpaidinterest,thetitletothehouse
isclouded,PlaintiffmayloseherhomeandPlaintiffhassuffereddamage
toherreputationinthecommunity.Thereisnomentionofsevere
emotionaldamagessuchassleeplessness,anxiety,depressionorthelike.
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Withregardtotheseventhcauseofactionforslanderoftitle,the
SecondAmendedComplaintfailstostateacauseofactionbecauseallof
theactionscomplainedofareprotectedbythelitigationprivilegefound
atCivilCode47and2924(b).

Ifthetentativerulingisuncontested,itshallbecometheorderof
theCourt,pursuanttoCRCRule3.1308(a)(1),adoptedbyLocalRule
3.10.Ifthetentativerulingisuncontested,plaintiffisdirected
toprepare,circulateandsubmitawrittenorderreflectingthis
CourtsrulingverbatimfortheCourtssignature,consistentwith
therequirementsofCRCRule3.1312.Theproposedorderistobe
submitteddirectlytoJudgeJonathanE.Karesh,Department20.

MOTIONTOSTRIKEPORTIONSOFPLAINTIFFSSECONDAMENDEDCOMPLAINTBY
WELLSFARGOBANK,N.A.DBAAMERICA'SSERVICINGCOMPANYANDU.S.BANK,N.A.
ASTRUSTEE,SUCCESSORBYMERGERTOLASALLEBANK,NATIONALASSOCIATION,AS
TRUSTEEFORMORGANSTANLEYMORTGAGELOANTRUST20077AX
TENTATIVERULING:

DefendantsWellsFargoBank,N.A.DBAAmericasServicingCompanyandU.S.
BankNationalAssociation,asTrustee,successorininteresttoBankof
America,NationalAssociationasTrustee,successorbymergertoLaSalle
Bank,NationalAssociationasTrusteeforMorganStanleyMortgageLoan
Trust20077AXsMotiontoStrikePortionsofPlaintiffsSecondAmended
ComplaintisDENIED.

PunitivedamagesareavailablewhenitisfoundthatDefendant'sactswere
"sovile,base,contemptible,miserable,wretchedorloathsomethatit
wouldbelookeddownuponanddespisedbyordinarypeople."Mockv.
MichiganMillersMut.Ins.Co.(1992)4Cal.App.4th306,331.Plaintiffs
SecondAmendedComplainthaspleadedsufficientfactsofDefendants
vile,baseandcontemptibleactstosupportaclaimforpunitive
damages.

IfDefendantsareentitledtoattorneysfeesundertheDeedofTrustin
thecaseoftheborrowersdefault,whichisprovidedforunder9and
22,thenPlaintiffisalsoentitledtoattorneysfees,ifPlaintiffis
theprevailingparty,asprovidedbyCiv.Code1717,whichcallsfor
reciprocalattorneysfeesunderaunilateralcontractprovision.

Ifthetentativerulingisuncontested,itshallbecometheorderof
theCourt,pursuanttoCRCRule3.1308(a)(1),adoptedbyLocalRule
3.10.Ifthetentativerulingisuncontested,prevailingpartyis
directedtoprepare,circulateandsubmitawrittenorderreflecting
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thisCourtsrulingverbatimfortheCourtssignature,consistent
withtherequirementsofCRCRule3.1312.Theproposedorderisto
besubmitteddirectlytoJudgeJonathanE.Karesh,Department20.

DEMURRERTOSECONDAMENDEDCOMPLAINTOFMANANTANBYMOABINVESTMENTGROUP,
LLC
TENTATIVERULING:

DefendantMoabInvestmentGroup,LLCsDemurrertoPlaintiffsSecond
AmendedComplaintisOVERRULED.

Plaintiffhassufficientlypleadedfactstosupportthesixthandeighth
causesofactionagainstDefendantMoab.

Forpurposesofthedemurrer,allmaterialfactsinthepleadingsare
assumedtobetrue.Ellenbergerv.Espinosa(2004)30Cal.App.4th943,
947.However,thedeductionsorconclusionsoffactorlawarenot
acceptedastrue.Blankv.Kirwan(1985)39Cal.3d311,318.Ademurrer
canbeusedtochallengedefectsthatappearonthefaceofthepleading
underattackorfrommattersoutsidethepleadingsthatarejudicially
noticeable.Ibid.

IntheSecondAmendedComplaint,PlaintiffallegesthattheTrustee'sDeed
isvoid(SAC62and147)andnotvoidable,thustherewasnosaleat
all,thereforetherecanbenobonafidepurchaser.Aninstrumentwhich
iswhollyvoidcannotbemadethefoundationofagoodtitle,evenunder
theequitabledoctrineofbonafidepurchase.Troutv.Trout(1934)220
Cal.652,656.

Because[Plaintiff]properlyallegedtheforeclosurewasvoidandnot
merelyvoidable,tenderwasnotrequiredtostateacauseofactionfor
quiettitleorforcancellationofinstruments.Sciarrattav.U.S.Bank
NationalAssn.(2016)247Cal.App.4th552,568.

Aquiettitleactionistoestablishtitlebetweenadverse
claimants.Plaintiffhaspledsufficientfactstosatisfytheelementsof
aquiettitleactionbyclaimingthatsheandDefendantMoabareadverse
claimantstothetitletotheproperty.(SAC155,157158and163.)

MovingpartysRequestforJudicialNoticeinSupportofDefendantMoab
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InvestmentGroup,LLCsDemurrertoPlaintiffsSecondAmendedComplaint
isGRANTED.Evid.Code452(c),(d)and(h).TheCourttakesjudicial
noticeoftheexistenceandcontentsofthedocumentsattachedasExs.1
and2,thoughnotofdisputedordisputablefactsstatedinEx.2.Glaski
v.BankofAmerica(2013)218Cal.App.4th1079,1102.

Ifthetentativerulingisuncontested,itshallbecometheorderof
theCourt,pursuanttoCRCRule3.1308(a)(1),adoptedbyLocalRule
3.10.Ifthetentativerulingisuncontested,prevailingpartyis
directedtoprepare,circulateandsubmitawrittenorderreflecting
thisCourtsrulingverbatimfortheCourtssignature,consistent
withtherequirementsofCRCRule3.1312.Theproposedorderisto
besubmitteddirectlytoJudgeJonathanE.Karesh,Department20.

Plaintiffisremindedthatthereisa15pagelimittoallmemorandaof
pointsandauthoritiesinopposition.CRC3.1113(d).

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