Land Bankers v. MRC Porto Marina CA2/3

CourtCalifornia Court of Appeal
DecidedMarch 10, 2025
DocketB330846
StatusUnpublished

This text of Land Bankers v. MRC Porto Marina CA2/3 (Land Bankers v. MRC Porto Marina CA2/3) 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
Land Bankers v. MRC Porto Marina CA2/3, (Cal. Ct. App. 2025).

Opinion

Filed 3/10/25 Land Bankers v. MRC Porto Marina CA2/3 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 THREE LAND BANKERS, LLC, B330846

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. 21STCV37661) v.

MRC PORTO MARINA, LLC,

Defendant and Appellant.

ANTHONY A. NGUYEN, et al., B331029

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. 21STCV41001) v.

Defendant and Appellant. APPEALS from judgments of the Superior Court of Los Angeles County, Christopher Lui, Judge. Affirmed. Law Office of George Rikos and George D. Rikos; Williams Iagmin and Jon R. Williams for Defendant and Appellant MRC Porto Marina, LLC. Sinclair Braun Kargher, Kevin S. Sinclair and Andrew H. Steinberg for Plaintiff and Respondent Land Bankers, LLC and Plaintiffs and Respondents Anthony A. Nguyen and Mai Nguyen.

_________________________

The instant appeals involve quiet title actions as to two adjacent properties that were originally owned by the same developer. Plaintiff Land Bankers, LLC (Land Bankers) and plaintiffs Anthony and Mai Nguyen (the Nguyens) (collectively, plaintiffs) filed quiet title actions against MRC Porto Marina, LLC (MRC), the entity that attempted to foreclose on both properties after MRC purportedly obtained a lien against the properties from one of the developer’s creditors. In their respective cases, plaintiffs moved for summary judgment, arguing that they were bona fide purchasers for value and MRC had no lien interests in the properties. While the motions were pending, MRC requested continuances so that it could conduct additional discovery. Pursuant to Code of Civil Procedure section 437c, subdivision (h),1 the trial court gave MRC a single continuance in each case but denied MRC’s additional request for continuance to depose a third-party witness. The trial court then

1 All subsequent statutory references are to the Code of Civil Procedure.

2 granted summary judgment for plaintiffs, concluding that they were bona fide purchasers for value, MRC had no interest in the properties, and MRC failed to articulate facts it expected to elicit from the third-party witness that were essential to its summary judgment opposition. The sole issue on appeal is whether the trial court abused its discretion by not continuing the summary judgment hearings pursuant to section 437c, subdivision (h) so MRC could depose the third-party witness. We conclude that the trial court acted within its discretion because the testimony MRC sought was parol evidence that could not contradict the recorded chain of title. Accordingly, we affirm the judgments. FACTUAL AND PROCEDURAL BACKGROUND I. 2013 Deeds of Trust on the Property In 2013, real estate developer Eli Cohen owned two adjacent lots of land in Pacific Palisades, California—17810 Porto Marina (the 17810 Property) and 17816 Porto Marina (the 17816 Property). To develop the lots, Cohen obtained three loans, secured by three deeds of trust that encumbered both properties: (1) a $1.2 million loan made by Firooz Payan in June 2013; (2) a $3.8 million loan made by Behrouz Aframian in July 2013; and (3) a $400,000 loan made by Payan in November 2013. II. 2015 Subordination Agreement In July of 2015, Aframian agreed to loan Cohen an additional $1.6 million, thus raising Cohen’s indebtedness to Aframian to $5.4 million. The terms of Aframian’s additional loan to Cohen were memorialized in two publicly recorded documents: (1) a “loan modification and extension agreement” executed by Aframian and Cohen and the “Subordination

3 Agreement” executed by Cohen, Payan, and Aframian. Only the Subordination Agreement is relevant to this appeal. The Subordination Agreement stated that Cohen had repaid in full Payan’s $1.2 million loan. Specifically, Recital D of the Subordination Agreement stated that Cohen was the borrower on “a loan in the original principal sum of $1,200,000 dated June 20, 2013, which was paid in full by Owner [Cohen] to Payan (which was secured by that certain Deed of Trust which shall be reconveyed by Payan concurrently with the execution hereof).” The Subordination Agreement also modified the relative priorities of Aframian’s $3.8 million deed of trust and Payan’s remaining $400,000 deed of trust as against the titles to the two properties. Specifically, Payan agreed to release the $400,000 deed of trust as a lien against the 17816 Property. Aframian agreed to subordinate his $3.8 million deed of trust to Payan’s $400,000 deed of trust as against the 17810 Property. The effect of the Subordination Agreement was to give Aframian the only lien against the 17816 Property, and to give Payan the senior lien (in the amount of $400,000) against the 17810 Property. To give effect to the parties’ agreement, Recital E of the Subordination Agreement stated that “[a]s a condition to executing and delivering the Partial Reconveyance, Payan requires that Payan’s Deed of Trust be unconditionally and at all times remain a lien or charge upon the 17810 Property, prior and superior to all the rights of Lender [Aframian]. . . .”2 The

2 Recital D of the Subordination Agreement defined “ ‘Partial Reconveyance’ ” as the reconveyance of the $400,000 deed of trust to Cohen as against the 17816 Property, while preserving that

4 Subordination Agreement defined “ ‘Payan’s Deed of Trust’ ” as the $400,000 deed of trust. Thus, Recital E made clear that Payan’s $400,000 deed of trust on the 17810 Property had priority over Aframian’s deed of trust.3 Consistent with the terms of the Subordination Agreement, Payan recorded both a partial reconveyance of the $400,000 deed of trust as against the 17816 Property, and a full reconveyance of the $1.2 million deed of trust as against both properties. All four of these instruments (the loan modification agreement, the Subordination Agreement, the partial reconveyance of the $400,000 deed of trust, and the full reconveyance of the $1.2 million deed of trust) were publicly recorded on July 17, 2015. Subsequently, Payan assigned his remaining interest in the $400,000 deed of trust to a third party, who is not involved in this litigation. The $400,000 deed of trust was paid off by Aframian and is not at issue on appeal. III. Conveyance of the Properties to Land Bankers and the Nguyens In June 2016, Cohen conveyed both properties to Aframian in full satisfaction of his debt to Aframian, which by then was $7,524,304. At the same time Aframian recorded the deed

$400,000 lien against the 17810 Property. The Subordination Agreement defined “Lender” as Aframian. 3 Both in its opposition to the summary judgment motion and in its reply brief on appeal, MRC has suggested Recital E indicated that Payan’s $1.2 million deed of trust remained on the property. We agree with the trial court that the plain language of this Subordination Agreement clarifies that “Payan’s Deed of Trust” refers to the $400,000 deed of trust.

5 conveying the properties from Cohen to Aframian, he conveyed the properties to his LLC, Land Bankers. In October 2016, Land Bankers sold the 17816 Property to the Nguyens for $3.5 million. Real estate broker Rita Benelian acted as Land Banker’s listing agent and the Nguyens’ buying agent. Land Bankers remains the owner of the 17810 Property. IV. Payan’s Purported Assignment of His Interest in the $1.2 Million Deed of Trust to MRC in 2020 In 2018 and again in 2020, Payan purported to rescind his 2015 reconveyance of the $1.2 million deed of trust. In 2020 Payan was in litigation with Michael R.

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