Hutton v. Fidelity National Title Co.

213 Cal. App. 4th 486, 152 Cal. Rptr. 3d 584, 2013 WL 387997, 2013 Cal. App. LEXIS 76
California Court of Appeal·Decided January 31, 2013·No. Nos. F063318, F063922·Published·Cited by 114 cases

Opinion

Opinion

KANE, J.

Plaintiff Brent Hutton sued defendant Fidelity National Title Company, the escrow company used in plaintiff’s refinance of his home loan, for allegedly charging a notary fee in excess of the amount permitted by Government Code section 8211.1 Under that statute, a notary may charge only $10 per signature for “taking an acknowledgment.” (Id., subd. (a).)2 Since only two acknowledgments were taken by the notary in connection with plaintiff’s loan refinance (with only one signature notarized as to each acknowledgement), plaintiff asserted that defendant violated the statute by charging him $75 for services performed by the notary.3 Based on the supposed overcharge for notary services, plaintiff’s complaint set forth causes of action for violation of California’s unfair competition law (Bus. & Prof. Code, § 17200 et seq.; UCL) and unjust enrichment. The complaint was styled as a statewide, multiyear class action on behalf of plaintiff and all others who used defendant’s escrow services in real estate or loan refinance transactions and were allegedly overcharged for notary services.

After conducting discovery but before class certification, defendant moved for summary judgment on two principal grounds: (1) The $75 fee was not a violation of section 8211 because that section only limited fees for certain services (e.g., taking acknowledgments) and the notary involved in this case performed many other services (i.e., traveling to location of signing, presenting multiple documents for signature, showing where to sign or initial each document, answering questions, etc.) and (2) the $75 fee was charged and retained by a third party independent contractor, not by defendant, even though defendant as escrow holder disbursed the funds for such services. The trial court granted defendant’s motion for summary judgment on both grounds. Plaintiff appeals from the resulting judgment. We find the first ground noted above to be dispositive and conclude on that basis that the trial [489] court properly granted summary judgment.4 Plaintiff also appeals from the trial court’s postjudgment order granting an award of attorney fees to defendant pursuant to a contractual provision in the escrow instructions. Plaintiff contends that said provision should not have been enforced because it was unconscionable. We agree with plaintiff on that issue and reverse the trial court’s order granting attorney fees. In all other respects, the judgment below is affirmed.

FACTS AND PROCEDURAL HISTORY

Plaintiff’s Complaint

On February 26, 2010, plaintiff filed his complaint against defendant to obtain remedies for alleged violation of the UCL and unjust enrichment. According to the complaint, section 8211 made it unlawful for defendant to charge in excess of $10 for each notarized signature on a deed or deed of trust. In providing escrow services in connection with plaintiff’s loan refinance, defendant allegedly billed a predetermined notary charge that exceeded the amount prescribed in section 8211. That same practice by defendant allegedly resulted in other persons (class members) being overcharged by defendant for notary services in connection with other real estate or loan refinance transactions. The complaint explained further: “The law could not be simpler. California Government Code Section 8211 sets a cap on notarization fees. Under Section 8211[, subdivision ](a), it is illegal to charge more than $10 per notarized signature on each deed or deed of trust used in a specific Real Estate Transaction. [|] . . . [Defendant] charged . . . more than $10 per signature. Thus, [defendant] violated the law.” Based on these core facts, plaintiff alleged a first cause of action labeled as unfair business practices (elsewhere more specifically identified by plaintiff as a UCL cause of action) and a second cause of action for unjust enrichment. Both causes of action were explicitly premised upon defendant’s alleged overcharge for notary fees in violation of section 8211.

Defendant’s Motion for Summary Judgment

On December 23, 2010, defendant filed its motion for summary judgment. We have already summarized above the grounds upon which that motion was made. In support of the first ground for the motion (i.e., that § 8211 was not violated), defendant presented, among other evidence, the declaration of the individual notary who was involved in the document signing in this case— namely, Lauri E. Kilpatrick (Kilpatrick). In her declaration, Kilpatrick described a variety of services that she typically provided in connection with [490] the signing of loan refinance documents in her capacity as a notary and a “certified signing agent” (or CSA). As a CSA, she is familiar with the various documents necessary in the loan closing process and is able to answer questions. Her declaration stated: “Generally, during a loan closing, I will (a) present all of the loan documents to the borrower which generally consists of about 60 to 150 pages, (b) make all necessary disclosures required by those loan documents, (c) explain the purpose of each loan document, (d) answer any questions the borrower may have about the loan documents or the loan closing process in general, (e) indicate where the borrower must sign each loan document, and (f) take an acknowledgment of the borrower’s signature when necessary. I provided these services for Mr. Hutton’s 2007 refinance closing, [f] . . . The majority of my loan signings are mobile loan signings where I will travel to the borrower’s home, the lender’s officé, or the escrow holder’s office.” (Italics added.) Of the services mentioned by Kilpatrick, the taking of acknowledgments (or the notarizing of signatures) was merely one minor part. Defendant’s motion noted plaintiff’s testimony in which he (plaintiff) recalled that “a lady” (Kilpatrick) came to his home to conduct the signing of plaintiff’s 2007 loan refinance papers, but he recalled little else about it.5 Defendant’s motion also pointed out that the $75 charge, as it appeared in the closing statement (the HUD-1 form), included an explicit reference to the fact that Kilpatrick was also a CSA. Specifically, the HUD-1 form stated: “Notary to Lauri Kilpatrick, APN & CSA.”

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

Hutton v. Fidelity National Title Co., 213 Cal. App. 4th 486, 152 Cal. Rptr. 3d 584, 2013 WL 387997, 2013 Cal. App. LEXIS 76 (Cal. Ct. App. 2013).

213 Cal. App. 4th 486 (Hutton v. Fidelity National Title Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Turner v. BBV Profit Sharing Plan CA1/1
California Court of Appeal, 2025
Agustin v. Golden Empire Transit Dist.
California Court of Appeal, 2025
De Meo v. Cooley LLP
California Court of Appeal, 2025
Holman v. County of Butte CA3
California Court of Appeal, 2025
Charkhchian v. Blue Cross of Cal. CA2/5
California Court of Appeal, 2024
Maxwell v. West CA6
California Court of Appeal, 2024
Taleb v. Thurman Interim Cal. CA2/3
California Court of Appeal, 2024
Skouti v. Buttonwillow Warehouse Company CA5
California Court of Appeal, 2024
Porporato v. Unchained Labs CA1/1
California Court of Appeal, 2024
Cambareri v. Apple CA6
California Court of Appeal, 2024
Metoyer v. County of Los Angeles CA2/8
California Court of Appeal, 2024
Vardanyan v. VJ's Touch Beauty Salon CA2/3
California Court of Appeal, 2024
Shin v. State Farm General Ins. Co. CA4/1
California Court of Appeal, 2023
Talwar v. Adventist Health Tehachapi Valley CA5
California Court of Appeal, 2023
Gray v. La Salle Bank, N.A.
California Court of Appeal, 2023
Gray v. La Salle Bank
California Court of Appeal, 2023