Orozco v. JP Morgan Chase Bank CA4/1

CourtCalifornia Court of Appeal
DecidedJune 11, 2013
DocketD059878
StatusUnpublished

This text of Orozco v. JP Morgan Chase Bank CA4/1 (Orozco v. JP Morgan Chase Bank 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
Orozco v. JP Morgan Chase Bank CA4/1, (Cal. Ct. App. 2013).

Opinion

Filed 6/11/13 Orozco v. JP Morgan Chase Bank CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

LEONARDO OROZCO, D059878

Plaintiff and Appellant,

v. (Super. Ct. No. 37-2008-00057744- CU-OR-NC) JPMORGAN CHASE BANK, N.A. et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of San Diego County, Thomas P.

Nugent, Judge. Affirmed.

Hallstrom Klein & Ward, Grant J. Hallstrom; and Oscar Ruiz de Chavez, for

Plaintiff and Appellant.

AlvaradoSmith, Sung-Min Christopher Yoo, John M. Sorich, and Katherine S.

Agbayani, for Defendants and Respondents. INTRODUCTION

In this appeal, plaintiff Leonardo Orozco seeks reversal of trial court orders

granting the defendants' motion for nonsuit, denying his motion for leave to amend his

prayer for relief to seek an equitable remedy, denying his motion for a new trial, and

sustaining defendants' demurrer to one of the causes of action alleged in his original

complaint. We discern no prejudicial errors in these orders and affirm the judgment.

BACKGROUND1

In June 2005 Orozco obtained a $1 million loan secured by a trust deed

encumbering his home in Carlsbad. The trust deed identified Metrocities Mortgage LLC

doing business as No Red Tape Mortgage as the lender, Fidelity National Loan Portfolio

Solutions as the trustee, Mortgage Electronic Registration Systems, Inc. (MERS) the

nominee beneficiary, and Orozco as the borrower.

In July 2007 a default notice was recorded indicating Orozco's loan payments were

almost $27,000 in arrears. The notice also indicated Orozco had to contact defendant

Chase Home Finance, LLC (Chase) to arrange for payment to stop the foreclosure.

1 Defendants have requested we take judicial notice of 11 documents providing background information. Orozco did not oppose the request. The first 10 documents were either issued by, filed with and considered by, or otherwise before the trial court. We grant the request as to these documents. (Evid. Code, § 459, subd. (a).) The last document does not appear to have been before the trial court in any manner and we do not need to consider it to resolve the issues presented on appeal. We, therefore, deny the request as to this document. (Vons Companies, Inc. v. Seabest Foods, Inc. (1996) 14 Cal.4th 434, 444, fn. 3.)

2 In August 2007 an assignment of deed of trust was recorded indicating MERS

transferred all beneficial interest in the trust deed to defendant Deutsche Bank National

Trust Company (Deutsche). In October 2007 a substitution of trustee was recorded

stating Deutsche substituted NDEx West, LLC (NDEx) as the new trustee of the trust

deed.

In November 2007 a notice of trustee's sale was recorded indicating NDEx was

going to sell Orozco's home at a public auction. In June 2008 a trustee's deed upon sale

was recorded indicating NDEx sold Orozco's home to Deutsche at a public auction on

May 16, 2008, for $796,000. The deed upon sale also indicated the amount of unpaid

debt and costs at the time of the sale was $1,088,222.52.

In August 2008 Orozco filed a complaint against JPMorgan Chase Bank, N.A.,

Chase, and Deutsche (collectively defendants) "to set aside foreclosure sale and trustee's

deed upon sale and for damages." (Capitalization omitted.) The complaint alleged

causes of action for wrongful foreclosure, fraud, and improper foreclosure.

Defendants demurred to the complaint, arguing Orozco had not stated any viable

causes of action. The trial court overruled the demurrer as to the fraud cause of action

and sustained the demurrer to the wrongful foreclosure and improper foreclosure causes

of action with leave to amend. Orozco subsequently filed a first amended complaint

alleging causes of action for wrongful foreclosure and fraud, but not for improper

foreclosure.

Defendants demurred to the first amended complaint, arguing Orozco had not

stated a viable wrongful foreclosure cause of action. The trial court sustained the

3 demurrer without leave to amend, leaving Orozco with just the fraud claim for which the

only relief he sought was punitive damages.

Trial commenced in January 2011. After Orozco's opening statement, but before

he concluded his presentation of evidence, the trial court granted defendants' motion for

nonsuit based on Orozco's inability to establish monetary damages. The trial court

additionally denied Orozco's request for leave to amend his prayer for relief to seek the

equitable remedy of vacating the foreclosure sale.2 Orozco subsequently moved for a

new trial, which the trial court also denied.

DISCUSSION

I

Granting of Nonsuit

A

Before trial, the parties submitted a "Joint Trial Readiness Conference Statement"

and proposed jury instructions to the trial court. Defendants also submitted a trial brief.3

One of the proposed jury instructions disputed by the parties related to whether Orozco's

economic damages were limited to the value of the property at the time of the foreclosure

sale. At a conference before jury selection commenced, the trial court deferred ruling on

2 Besides requesting leave to amend his prayer for relief, Orozco apparently moved in limine for leave to amend his complaint to add new causes of action and remedies. The trial court denied the motion both because it was in improper form and because it was untimely. Orozco has not appealed this decision and did not include a copy of the motion in the appellate record.

3 These documents are not included in the appellate record.

4 the instruction and requested additional briefing from the parties. After jury selection and

just before opening statements, both parties submitted the additional briefing.4 Although

defendants requested the trial court immediately rule on the matter, the trial court

declined to do so indicating it would revisit the matter later in the day.

The trial court initially revisited the matter after releasing the jury for lunch, which

was after Orozco's first two witnesses had testified and before he concluded his

presentation of evidence with his own testimony. The trial court explained to the parties

that in reviewing the proposed jury instructions on damages it began to question whether

Orozco could obtain noneconomic damages for a fraud claim where he suffered no

economic damages because he had no equity in his property. The trial court asked the

parties to research the issue over the lunch break and to return from the break early to

discuss the matter further.

When the trial court and the parties revisited the issue again, Orozco's counsel

clarified Orozco was not seeking emotional distress damages. Orozco was, however,

seeking damages for the loss of his home and potential future profits he would have made

from it. Essentially, he was seeking to vacate the foreclosure sale.

The trial court noted this relief was available for wrongful foreclosure. However,

because defendants had successfully demurred to the wrongful foreclosure causes of

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