Moreira v. New Rez CA4/1

CourtCalifornia Court of Appeal
DecidedNovember 20, 2023
DocketD081023
StatusUnpublished

This text of Moreira v. New Rez CA4/1 (Moreira v. New Rez CA4/1) 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
Moreira v. New Rez CA4/1, (Cal. Ct. App. 2023).

Opinion

Filed 11/20/23 Moreira v. New Rez CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

ISRAEL MOREIRA et al., D081023

Plaintiffs and Appellants,

v. (Super. Ct. No. 37-2020- 00045432-CU-OR-CTL) NEW REZ, LLC et al.

Defendants and Respondents.

APPEAL from a judgment and an order of the Superior Court of San Diego County, Kenneth J. Medel, Judge. Appeal dismissed; order affirmed. Law Offices of Ronald H. Freshman and Ronald H. Freshman for Appellants Israel Moreira and Margarita Garcia Moreira. Steele and John C. Steele for Respondent MTC Financial Inc. Klinedinst, Ian A. Rambarran, Robert M. Shaughnessy, Jonathan C. Cahill, and Bryan R. Delgado for Respondents Newrez, LLC and Mortgage Electronic Registration System, Inc. No appearance for Respondent New Residential Mortgage, LLC. I INTRODUCTION Borrowers Israel Moreira and Margarita Garcia Moreira appeal from an order sustaining a demurrer to their civil complaint, without leave to amend, and dismissing their case against Mortgage Electronic Registration Systems, Inc. (MERS), New Residential Mortgage, LLC (New Residential), NewRez, LLC dba Shellpoint Mortgage Servicing (Shellpoint), and MTC Financial Inc. dba Trustee Corps (Trustee Corps)—entities that have at times claimed an interest in the Moreiras’ debt. The Moreiras also appeal from an order denying their motion to vacate the dismissal order under Code of Civil Procedure section 473. Our court does not have appellate jurisdiction to review the dismissal order because the Moreiras did not file a timely notice of appeal from that order. Thus, the Moreiras’ appeal from the dismissal order is dismissed as untimely. As for the order denying the motion to vacate, the trial court properly exercised its discretion in denying vacatur after finding that the dismissal order was not caused by any mistake or inadvertence of the Moreiras’ legal counsel, Ronald H. Freshman. Therefore, we affirm the order denying the motion to vacate. II BACKGROUND A. Factual Background The following background is taken from the allegations of the operative complaint and the exhibits attached thereto, which we assume are true under the standard of review applicable to our review of a ruling on a demurrer. (LeBrun v. CBS Television Studios, Inc. (2021) 68 Cal.App.5th 199, 202.)

2 On November 7, 2006, the Moreiras took out a loan from Countrywide Home Loans, Inc. (Countrywide) in the amount of $410,000.00. The promissory note for the loan was secured by a lien on the Moreiras’ residence pursuant to a deed of trust. The deed of trust identified Countrywide as the lender, Recontrust Company, N.A. as the trustee, and MERS as the beneficiary, “solely as a nominee for [the] [l]ender and [the] [l]ender’s

successors and assigns.”1 According to the complaint, Countrywide sold the note to Federal National Mortgage Association (Fannie Mae) on or about December 15, 2006. Thereafter, Fannie Mae allegedly resold the note to “investors” whose identities were “concealed” from the Moreiras. Notwithstanding the supposed sale of the note to Fannie Mae, MERS executed an assignment of deed of trust, dated May 3, 2012, and recorded on May 9, 2012, which stated that MERS was assigning its interest in the deed of trust to Bank of America, N.A. (BANA). BANA executed an assignment of deed of trust, dated June 5, 2013, and recorded on September 6, 2013, which ostensibly assigned its interest in the deed of trust to Green Tree Servicing, LLC, an entity that merged with, or was purchased by, Ditech Financial, LLC (hereafter, we will refer to both Green Tree Servicing, LLC and Ditech Financial, LLC as Ditech). Ditech executed a substitution of trustee, dated July 17, 2014, and recorded on July 24, 2014, which claimed to substitute Trustee Corps as the trustee under the deed of trust. Trustee Corps then executed a notice of default, dated July 22, 2014, and recorded on July 24, 2014. The notice of

1 “A ‘nominee’ is a person or entity designated to act for another in a limited role—in effect, an agent.” (Fontenot v. Wells Fargo Bank, N.A. (2011) 198 Cal.App.4th 256, 270, disapproved on another point of law by Yvanova v. New Century Mortgage Corp. (2016) 62 Cal.4th 919, 939, fn. 13 (Yvanova).) 3 default stated the Moreiras were past due in their loan payments in the amount of $50,231.65. At some point thereafter, the notice of default was rescinded. Ditech executed another assignment of deed of trust, dated and recorded on January 17, 2020, which purported to assign Ditech’s interest in the deed of trust to New Residential. Finally, we take notice of an assignment of deed of trust, dated and recorded on June 17, 2021, and included in the record, which replaces New

Residential with Shellpoint as the deed of trust beneficiary.2 (Evid. Code, § 459, subd. (a); Yvanova, supra, 62 Cal.4th at p. 924, fn. 1.) B. Procedural Background 1. The Complaint On December 10, 2020, the Moreiras filed the present lawsuit against MERS, Shellpoint, Trustee Corps, New Residential, and unnamed Doe defendants. They filed the operative verified first amended complaint on June 28, 2021. The operative complaint alleged that Countrywide sold the Moreiras’ promissory note to Fannie Mae in December 2006, which rendered void all of the deed of trust assignments described above. The complaint alleged the substitution of trustee and the notice of default were void due to the sale of the note to Fannie Mae as well. Further, the complaint argued the notices of deed of trust assignments, the substitution of trustee, and the notice of default contained false or misleading representations insofar as they stated

2 The trial court took judicial notice of the assignment of trust substituting Shellpoint as the beneficiary under the deed of trust. It also took judicial notice of the rescission of the notice of default, which was dated August 15, 2019, and recorded on August 19, 2019. 4 the alleged assignees had beneficial or transferable interests in the Moreiras’ debt (since that debt was sold to Fannie Mae and then resold to “investors”). Based on these allegations, the complaint asserted causes of action for: (1) declaratory relief (all defendants); (2) intentional misrepresentation (MERS, BANA, and New Residential); (3) cancellation of instruments (New Residential, Shellpoint, and BANA); (4) violations of Civil Code section 2924.17 (New Residential, Shellpoint, and BANA); (5) violations of Civil Code section 2924 (Shellpoint, Trustee Corps, and New Residential); (6) slander of title (New Residential); (7) violation of the Unfair Competition Law (all defendants); and (8) quiet title (New Residential and BANA). It sought a declaration the defendants had no interest in the Moreiras’ loan, the promissory note, or the deed of trust; an order cancelling the deed of trust assignments and the substitution of trustee; an order quieting title in favor of the Moreiras; an injunction against future nonjudicial foreclosures; and damages. 2. The Demurrer Proceedings On July 22, 2021, MERS, Shellpoint, and New Residential demurred to the operative complaint. They argued the collateral estoppel doctrine barred the complaint in its entirety. According to the defendants, the Moreiras petitioned for Chapter 13 bankruptcy in 2017 (In re Israel R. Moreira, Bankruptcy No. 17-04352-LT13), and Ditech (the claimed beneficiary under the deed of trust at the time) filed a proof of claim alleging $159,549.62 in

5 prepetition arrearages.3 The Moreiras objected to the claim of interest.

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Moreira v. New Rez CA4/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moreira-v-new-rez-ca41-calctapp-2023.