Chase Bank v. Arbogast CA4/2

CourtCalifornia Court of Appeal
DecidedAugust 22, 2016
DocketE063261
StatusUnpublished

This text of Chase Bank v. Arbogast CA4/2 (Chase Bank v. Arbogast CA4/2) 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
Chase Bank v. Arbogast CA4/2, (Cal. Ct. App. 2016).

Opinion

Filed 8/22/16 Chase Bank v. Arbogast CA4/2

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FOURTH APPELLATE DISTRICT

DIVISION TWO

CHASE BANK USA, N.A.,

Cross-complainant and E063261 Respondent, (Super.Ct.No. MCC1300894) v. OPINION TOMI ARBOGAST,

Cross-defendant and Appellant.

APPEAL from the Superior Court of Riverside County. Raquel A. Marquez,

Judge. Affirmed.

Lieberg, Oberhansley & Strohmeyer and Jon H. Lieberg for Cross-defendant and

Appellant.

1 Bryan Cave, Glenn J. Plattner and Richard P. Steelman, for Cross-complainant

and Respondent.

Chase Bank USA, N.A. (the Bank) initiated foreclosure proceedings on Tomi

Arbogast’s house in Temecula. Arbogast sued the Bank (1) to quiet title; (2) to obtain

an injunction; and (3) to obtain declaratory relief. The Bank cross-complained,

asserting four causes of action for (1) breach of contract; (2) an equitable mortgage;

(3) unjust enrichment; and (4) declaratory relief. The trial court denied Arbogast’s anti-

SLAPP motion. (Code Civ. Proc., § 425.16.) Arbogast contends the trial court erred by

denying her anti-SLAPP motion and her requests for judicial notice. We affirm the

judgment.

FACTUAL AND PROCEDURAL HISTORY

A. COMPLAINT

The following facts are taken from Arbogast’s complaint. In 2003 Arbogast

borrowed $100,000 from the Bank. The loan was secured by a deed of trust on

Arbogast’s property in Temecula (the property). In August 2007 LandAmerica Default

Services—California initiated foreclosure proceedings against the property. The notice

reflected Arbogast had past due payments on the loan totaling $5,385.24. In 2009 First

American Title Insurance Company (First American) caused a Notice of Default and

Election to Sell Under Deed of Trust to be recorded against the property.

In May 2010 the trustee’s sale was conducted. Canter International Riverside II,

LLC (Canter) was the high bidder at the sale, at a bid of $160,000. The Trustee’s Deed

Upon Sale was recorded on July 20, 2010. On November 17, 2010, a Notice of

2 Rescission of Trustee’s Sale and Trustee’s Deed Upon Sale was recorded in relation to

the property. The recordation was requested by First American which explained, “After

the [trustee’s] sale was held, the Trustors entered into litigation, thereby divesting the

power of sale pursuant to which [the] Trustee was purportedly acting when the

Trustee’s Sale was purportedly held and the Trustee’s Deed Upon Sale was issued.

Accordingly, the Trustee’s Sale and the resulting Trustee’s Deed Upon Sale were and

are null and void and legally ineffective to transfer all or any interest in the Property to

Canter International Riverside II, LLC.”

The document further provides, “NOW THEREFORE, by the recordation of this

Notice of Rescission of Trustee’s Sale and Trustee’s Deed Upon Sale, the undersigned,

as duly substituted trustee under the aforesaid deed of trust, does hereby rescind that

certain Trustee’s Deed Upon Sale recorded July 20, 2010 . . . in the Office of the

Riverside County Recorder and the Trustee’s Sale described therein as though said

instrument had never been executed, delivered and/or recorded and the purported

Trustee’s Sale described therein had never been held. The undersigned does further

restore the condition of record title to the above-described real property and the

existence and priority of all lien holders to the status quo prior to the recordation of said

Trustee’s Deed Upon Sale.”

On June 14, 2011, a quitclaim deed was recorded reflecting Arbogast purchased

the property from Canter. The Bank contacted Arbogast about delinquent payments. In

February 2013 the Bank informed Arbogast that it intended to foreclose on the property.

3 On June 24, 2013, Arbogast filed her complaint. In Arbogast’s complaint, she

asserts she had not entered into any litigation that would have divested the Trustee of

the power to sell the property to Canter. For example, she had not declared bankruptcy.

Arbogast alleged the Notice of Rescission “is of no legal effect” because it did not

satisfy the legal requirements for rescinding a deed in that there was no pending

litigation. (Civ. Code, § 1058.5.)

In Arbogast’s First Cause of Action to Quiet Title, she asserted she purchased the

property from Canter. Arbogast contended the Bank no longer had a deed of trust

securing the property because the Bank foreclosed. Arbogast requested the trial court

find she owned the property “free and clear.”

In the Second Cause of Action, for injunctive relief, Arbogast requested the court

restrain the Bank from foreclosing on the property because the Bank had “no valid deed

of trust.” In the Third Cause of Action, for declaratory relief, Arbogast asserted the

Bank did not have a valid deed of trust because the property had already been

foreclosed, sold to Canter, and First American did not have the authority to rescind the

sale to Canter. Arbogast requested the trial court declare the loan was fully satisfied and

the deed of trust extinguished when the property was sold to Canter.

B. CROSS-COMPLAINT

The following facts are taken from the Bank’s cross-complaint. In 2003,

Arbogast borrowed $100,000 from the Bank, secured by a deed of trust on the property.

Between 2007 and 2009, Arbogast did not make payments on the loan. On May 24,

2010, the property was sold to Canter at a public auction. On June 1, 2010, Arbogast

4 filed a lawsuit challenging the validity of the trustee’s sale. Arbogast’s lawsuit included

causes of action (1) for breach of contract; (2) to set aside the foreclosure; (3) to cancel

the trustee’s deed; (4) for injunctive relief; (5) for fraud; (6) for unfair competition (Bus.

& Prof. Code, § 17200); (7) for unjust enrichment; and (8) for negligence.

Canter was named as a defendant in Arbogast’s lawsuit. The Bank caused a

Notice of Rescission of the Trustee’s Deed Upon Sale to be recorded in November

2010. Canter agreed to the rescission. In July 2011 Canter unilaterally recorded a

quitclaim deed, conveying the property to Arbogast, in order to settle the lawsuit.

Arbogast dismissed Canter from the lawsuit.

The Bank filed a motion for summary judgment in the 2010 case. Arbogast

opposed the motion. On March 2, 2012, the Bank and Arbogast reached a settlement

agreement before the trial court ruled on the motion for summary judgment. In the

settlement agreement, Arbogast and the Bank released and discharged each other from

any and all claims arising out of the facts alleged in Arbogast’s 2010 lawsuit as well as

the facts set forth in the settlement agreement. The Bank paid Arbogast $90,000 as part

of the settlement. Arbogast did not make loan payments after the Bank paid the

$90,000 settlement amount. The Bank again initiated foreclosure proceedings. On June

24, 2013, Arbogast filed the instant lawsuit.

The Bank filed its cross-complaint, in the instant case, on November 4, 2014. In

Free access — add to your briefcase to read the full text and ask questions with AI

Related

First Commercial Mortgage Co. v. Reece
108 Cal. Rptr. 2d 23 (California Court of Appeal, 2001)
Soukup v. Law Offices of Herbert Hafif
139 P.3d 30 (California Supreme Court, 2006)
Finton Construction, Inc. v. Bidna & Keys, APLC
238 Cal. App. 4th 200 (California Court of Appeal, 2015)
Lanz v. Goldstone
243 Cal. App. 4th 441 (California Court of Appeal, 2015)
Bailey v. Brewer
197 Cal. App. 4th 781 (California Court of Appeal, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
Chase Bank v. Arbogast CA4/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chase-bank-v-arbogast-ca42-calctapp-2016.