Alexander v. Deutsche Bank Nat. Trust Co. CA2/4

CourtCalifornia Court of Appeal
DecidedJune 16, 2014
DocketB250488
StatusUnpublished

This text of Alexander v. Deutsche Bank Nat. Trust Co. CA2/4 (Alexander v. Deutsche Bank Nat. Trust Co. CA2/4) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander v. Deutsche Bank Nat. Trust Co. CA2/4, (Cal. Ct. App. 2014).

Opinion

Filed 6/16/14 Alexander v. Deutsche Bank Nat. Trust Co. CA2/4 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FOUR

STEPHEN ALEXANDER, B250488 (Los Angeles County Plaintiff and Appellant, Super. Ct. No. SC119051)

v.

DEUTSCHE BANK NATIONAL TRUST COMPANY et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Los Angeles, Richard A. Stone, Judge. Affirmed. Law Offices of Mark W. Lapham and Mark W. Lapham Plaintiff and Appellant. Severson & Werson, Jan T. Chilton and Kerry W. Franich for Defendants and Respondents. In the underlying action, appellant Stephen Alexander asserted claims against respondents Deutsche Bank National Trust Company (Deutsche Bank), Bank of New York, Quality Loan Service Corporation, and Mortgage Electronic Registration Systems (MERS), alleging that they wrongfully participated in a foreclosure sale of property. After granting respondents’ motion for judgment on the pleadings, the trial court entered an order of dismissal with prejudice in favor of respondents. Appellant maintains the trial court erred in granting judgment on the pleadings in favor of respondents, rather than granting his own motion for judgment on the pleadings, which was predicated on respondents’ failure to file a verified answer to his verified complaint. We reject appellant’s contentions of error and affirm.

RELEVANT FACTUAL AND PROCEDURAL BACKGROUND Appellant’s verified complaint, filed November 14, 2012, asserts claims for wrongful foreclosure, unfair business practices, cancellation of an instrument, quiet title, and injunctive relief against respondents and Quality Loan Service Corporation (Quality). The complaint alleges the following facts: Appellant owns an undivided 75 percent interest in a residential property located in Santa Monica. In September 2005, Valroide Lyons, appellant’s co-owner, borrowed $330,000 from New Century Mortgage Corporation. The promissory note evidencing the loan was secured by a recorded first position trust deed regarding the property. The trust deed identified Financial Title Company as trustee, and MERS as “nominee” for the beneficiary, New Century Mortgage Corporation. In 2006, the loan was “securitized,” and the promissory note was transferred in an unlawful manner to Deutsche Bank. In May 2008, Deutsche Bank improperly substituted Quality as trustee in place of Financial Title Company. On August 11, 2008,

2 Quality conducted an unauthorized foreclosure sale and sold the property to Bank of New York. On December 19, 2012, respondents filed an unverified answer to the complaint. On January 4, 2013, appellant filed motions to strike the answer and for judgment on the pleadings, contending that respondents’ failure to file a verified answer entitled appellant to a default judgment on his complaint. On March 12, 2013 and May 24, 2013, respondents filed motions for judgment on the pleadings, asserting that the claims, as pleaded, were legally unsound, and also failed for other reasons.1 Respondents contended that appellant’s claims were time-barred on the face of the complaint, arguing that each claim was subject to a limitations period of four years or less, and that appellant initiated his action more than four years after the August 2008 foreclosure sale. They further maintained that appellant lacked standing to assert his claims because he obtained his alleged interest in the property in October 2012, long after the foreclosure sale, when Lyons executed a quitclaim deed purportedly transferring a 75 percent interest in the property to appellant. In support of that contention, respondents asked the court to take judicial notice of three recorded instruments: the September 2005 trust deed securing Lyons’s loan, the August 2008 trust deed following the foreclosure sale, and a quitclaim deed dated October 26, 2012, which reflected a transfer of an undivided 75 percent interest in the property from Lyons to appellant. On June 7, 2013, the parties filed their respective oppositions to the pending motions. Respondents contended appellant’s request for judgment on the

1 The trial court appears to have ruled only on the May 24, 2013 motion, which incorporated the arguments in the March 12, 2013 motion.

3 pleadings failed because the complaint stated no claim. Respondents further maintained that appellant’s motions to strike and for judgment on the pleadings were procedurally defective because appellant neither filed nor served notices of the motions, and the motions themselves lacked proofs of service. Respondents also requested leave to amend their answer were the court to strike their answer. Supporting respondents’ opposition to appellant’s motion for judgment on the pleadings was a declaration from their counsel, Matthew Garfinkle. Garfinkle stated that in December 2012, shortly after respondents retained him, he became extremely ill. When appellant rejected his request for an extension of time in which to file a responsive pleading to the complaint, Garfinkle decided to forego filing a demurrer, and instead filed an answer. Later, in February 2013, he examined the online case summary for the action and learned for the first time that appellant had filed his motions. After Garfinkle obtained copies of the motions, he discovered that they lacked proofs of service. Garfinkle told appellant’s counsel that he had not received the motions, but appellant’s counsel never responded to Garfinkle’s request for copies of the motions. Appellant’s opposition to respondents’ motion for judgment on the pleadings reiterated that he should be granted judgment on the pleadings because respondents’ answer was unverified. Appellant challenged respondents’ motion on procedural grounds, arguing that respondents had filed no timely demurrer, that they had filed only a defective answer, and that their May 24, 2013 motion for judgment on the pleadings was not timely filed. In addition, appellant maintained that although the court was entitled to take judicial notice of the three recorded instruments submitted by respondents, it could not thereby credit the statements contained in the instruments.

4 On June 20, 2013, the trial court granted respondents’ motion for judgment on the pleadings without leave to amend, and took appellant’s motions off calendar as moot. In so ruling, the court took judicial notice of the three recorded instruments submitted by respondents. The court determined that appellant’s claims were time-barred, as the foreclosure sale took place in August 2008, more than four years before appellant filed suit in November 2012. The court further determined that appellant lacked standing to assert the claims, as Lyons had no interest in the property when he executed the quitclaim deed in October 2012, purportedly transferring an undivided 75 per cent interest in the property to appellant. Finally, the court found that appellant failed to calendar his motions properly.2 On July 11, 2013, the court entered an order of dismissal. This appeal followed.

DISCUSSION Appellant contends the trial court erred in granting judgment on the pleadings in respondents’ favor, rather than granting his motion for judgment on the pleadings. He maintains he was entitled to a judgment in his favor as a matter of law because respondents failed to filed a verified answer to the complaint, and their motions for judgment on the pleadings were procedurally defective. We disagree.

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Bluebook (online)
Alexander v. Deutsche Bank Nat. Trust Co. CA2/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-v-deutsche-bank-nat-trust-co-ca24-calctapp-2014.