Canyon View Limited v. Bank of America CA2/1

CourtCalifornia Court of Appeal
DecidedOctober 26, 2023
DocketB312259
StatusUnpublished

This text of Canyon View Limited v. Bank of America CA2/1 (Canyon View Limited v. Bank of America CA2/1) 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
Canyon View Limited v. Bank of America CA2/1, (Cal. Ct. App. 2023).

Opinion

Filed 10/26/23 Canyon View Limited v. Bank of America CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 ONE

CANYON VIEW LIMITED, B312259

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. PC057199)

v.

BANK OF AMERICA, N.A., et al.,

Defendants and Appellants.

APPEAL from an order of the Superior Court of Los Angeles County, Stephen P. Pfahler, Judge. Affirmed in part and reversed in part with directions. Greines, Martin, Stein & Richland, Robin Meadow and Jeffrey Gurrola for Plaintiff and Appellant. McGlinchey Stafford and Sanford Shatz for Defendants and Appellants. Plaintiff and appellant/cross-respondent Canyon View Limited, dba Canyon View Estates (Canyon View) owns and operates a manufactured home park, where it leases home site lots to occupants who purchase and install mobilehomes and other improvements on permanent foundations. Canyon View filed a quiet title action against defendants and respondents/cross-appellants Bank of America, N.A. (BOA) and The Bank of New York Mellon (BONY) (collectively, the BONY parties), alleging that they recorded documents clouding Canyon View’s title to a mobilehome in Canyon View’s mobilehome park that Canyon View had purchased in a public sale pursuant to the Mobilehome Residency Law (MRL) (Civ. Code, § 798 et seq.).1 After the court entered a stipulated judgment quieting title to the home in Canyon View’s favor, Canyon View sought attorney fees and costs under section 798.85, the fees and costs provision of the MRL. The court initially denied Canyon View’s fees motion on the basis that the action did not “aris[e] out of the [MRL].” (§ 798.85.) We reversed this denial in a partially published opinion, holding the instant action arose out of the MRL, because it was necessary to perfect Canyon View’s MRL- based right to free and clear title to the home. (See Canyon View Ltd. v. Lakeview Loan Servicing, LLC (2019) 42 Cal.App.5th 1096 (Canyon View I).) Because the trial court had not conducted a proper lodestar analysis or calculated the amount of reasonable attorney fees and costs to award under the MRL, we instructed it to do so upon remand, and further to enter a fees and costs award consistent with Canyon View I.

1 Unless otherwise specified, all subsequent statutory references are to the Civil Code.

2 The fees and costs award the court issued on remand from Canyon View I is the subject of the instant appeal and cross-appeal. Canyon View argues that the court abused its discretion by applying an approach to calculating the fees award that the court had applied in another action involving Canyon View, an approach we have since determined lacks any reasonable basis and constitutes an abuse of discretion. (See Canyon View Limited v. Lakeview Loan Servicing, LLC (Aug. 30, 2022, B311313) [nonpub. opn.] (Canyon View II).) Canyon View argues the approach constitutes an abuse of discretion here for the reasons we outlined in Canyon View II, and because it is based on evidence in that separate action, rather than evidence in the instant action. We agree. The BONY parties argue that the court erred in awarding any fees and costs under the MRL, because, for various reasons, the action was not necessary to perfect Canyon View’s MRL-based right to hold title free and clear of any prior liens held by the BONY parties. We reached the opposite conclusion on this precise issue in Canyon View I. Thus, the law of the case doctrine prevents us from considering these arguments. The BONY parties do not argue that an exception to the law of the case doctrine applies, nor do we conclude any exception is applicable. The BONY parties further argue that, even assuming Canyon View is entitled to recover any fees and costs under the MRL, the court abused its discretion by awarding fees for work beyond what was necessary to vindicate any MRL-based rights. We agree that whether work is necessary to vindicate an MRL- based right is a relevant factor in assessing reasonable attorney

3 fees and costs under the MRL. But this consideration does not support a reduction in the instant award. Finally, we find unpersuasive the BONY parties’ challenge to the court’s award of costs, as that challenge is based on Code of Civil Procedure sections that do not govern costs under the MRL. Accordingly, we affirm the court’s order awarding Canyon View costs. We, however, reverse the award of attorney fees, and instruct the court to award fees using a lodestar analysis based only on the evidence presented in this case.

FACTUAL AND PROCEDURAL BACKGROUND A. MRL Background We first summarize the provisions of the MRL most relevant to the instant appeal. Article 6 of the MRL (§§ 798.55–798.62) creates procedures whereby mobilehome park management may sell or dispose of abandoned mobilehomes. (See § 798.61.) Specifically, mobilehome park “management” must properly notice all owners and lienholders of a mobilehome of management’s intention to file a petition for declaration of abandonment. (Id., subds. (b) & (c).) If petitioner at such a hearing makes the required showing, the court “shall” issue a judgment of abandonment. (Id., subd. (d)(2).) After obtaining such a judgment, management may “dispose of ” the mobilehome (id., subd. (f)) or sell it via a public sale (id., subd. (e)(2)), in compliance with MRL procedures. (See id., subds. (e) & (f).) If management chooses to sell the home, the purchaser in such a sale takes the home “free of any

4 prior interest . . . or lien.”2 (§ 798.61, subd. (e)(4).) The MRL expressly permits management to purchase a mobilehome at such a sale, and to offset from its bids the amount management is owed under the lease. (Id., subd. (e)(2).) Article 8 of the MRL (§§ 798.84–798.88) contains an attorney fees and costs provision, which requires a court to award reasonable attorney fees and costs to the “prevailing party” “[i]n any action arising out of the provisions of this chapter [i.e., the MRL].” (§ 798.85.)

B. Factual and Procedural Background Leading To Canyon View I 1. Abandonment of Subject Property In October 2005, Dominique Reese and Donna Worthington-Reese purchased a mobilehome on lot 332 in Canyon View Estates and entered into a long-term lease with Canyon View on that lot. They financed the transaction by obtaining a loan secured by a deed of trust encumbering both the mobilehome and the leasehold interest. That deed of trust was later assigned to BONY and serviced by BOA. In 2007, the Reeses breached their lease by failing to make payments. Canyon View issued the requisite MRL notices to the Reeses and all lienholders, and no one cured the defaults under the lease.

2 The one exception provided for in the MRL is a lien of the state for nonpayment of the fees and penalties under Health and Safety Code section 18116.1. (§ 798.61, subd. (e)(4).)

5 2. Canyon View’s Purchase of the Property and Subsequent Recordings In April 2009, Canyon View obtained a judgment of abandonment to the Reeses’ mobilehome. At a public sale on May 7, 2009, Canyon View purchased the mobilehome. Under section 798.61, subdivision (e)(4), the sale extinguished all liens on and interests in the mobilehome. A grant deed conveying the mobilehome to Canyon View was recorded on February 23, 2010.3 On March 19, 2010, the trustee of the deed of trust held by BONY recorded a notice of default and election to sell under the deed of trust. This notice claimed BONY held a lien on the subject mobilehome.

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Canyon View Limited v. Bank of America CA2/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canyon-view-limited-v-bank-of-america-ca21-calctapp-2023.