Ratliff v. EMC Mortgage CA1/3

CourtCalifornia Court of Appeal
DecidedDecember 5, 2013
DocketA132886
StatusUnpublished

This text of Ratliff v. EMC Mortgage CA1/3 (Ratliff v. EMC Mortgage CA1/3) 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
Ratliff v. EMC Mortgage CA1/3, (Cal. Ct. App. 2013).

Opinion

Filed 12/5/13 Ratliff v. EMC Mortgage CA1/3 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIRST APPELLATE DISTRICT

DIVISION THREE

LONNIE RATLIFF, JR., Plaintiff and Appellant, A132886 v. (Alameda County EMC MORTGAGE, LLC, et al., Super. Ct. No. RG10511310) Defendants and Respondents.

Lonnie Ratliff, Jr., (appellant), in propria persona, appeals from judgments entered after the trial court sustained EMC Mortgage’s (EMC) demurrer without leave to amend, sustained Robert J. Jackson, Esq., and Robert J. Jackson and Associates’s (together, the Jacksons) demurrer without leave to amend, and granted the Jacksons’s special motion to strike under Code of Civil Procedure section 425.16. Appellant contends the trial court erred in ruling that: (1) the doctrine of res judicata barred his claims against EMC; and (2) he failed to state a valid cause of action against the Jacksons. We reject the contentions and affirm the judgments. FACTUAL AND PROCEDURAL BACKGROUND1 Appellant, the owner of a real property located in Oakland, California, (the Property) obtained a $630,000 residential loan (the Loan) against the Property from

1 Because this case is on appeal from the sustaining of demurrers, our statement of facts is based on the allegations of appellant’s first amended complaint filed in this action and matters of which the trial court took judicial notice. (See Crowley v. Katleman (1994) 8 Cal.4th 666, 672; Saks v. Damon Raike & Co. (1992) 7 Cal.App.4th 419, 422.)

1 Mortgage Store Financial, Inc. (Mortgage Store), and a Deed of Trust was recorded on October 24, 2003. The Deed of Trust identified Mortgage Electronic Registration Systems, Inc. (MERS) as the beneficiary and First American Title Insurance Company as the Trustee. A Substitution of Trustee was recorded on July 22, 2005, substituting Executive Trustee Services, Inc. (ETS), as the Trustee. Thereafter, appellant defaulted on the Loan and a Notice of Default was recorded on February 7, 2006, providing that appellant was in arrears in the amount of $26,222.37. A Notice of Trustee’s Sale in connection with the Deed of Trust was recorded on August 20, 2007, setting a non-judicial foreclosure sale for September 11, 2007. In a letter dated August 20, 2007, GMAC Mortgage, the servicing agent for the mortgage, notified appellant that EMC was going to be the new servicing agent effective September 4, 2007. Appellant attended the foreclosure sale of the Property, which took place on October 2, 2007. Appellant told the auctioneer agent that he wished to buy back the Property, and the agent said he was willing to sell it back to appellant for $620,000 if appellant could procure a loan within a certain period of time. Based on that representation, appellant worked on procuring a loan, only to find out a few weeks later that a Trustee’s Deed Upon Sale had recorded on October 12, 2007, providing that EMC was the high bidder at the October 2, 2007 foreclosure sale and had purchased the Property for $620,000. While attempting to take possession of the Property, and in an effort to evict appellant, EMC initiated an unlawful detainer action on November 19, 2007. EMC thereafter voluntarily dismissed the action. EMC filed a second unlawful detainer action on February 8, 2008, and the Jacksons were substituted in as counsel for EMC in the action. The trial court dismissed the action without prejudice on August 6, 2008. EMC, still represented by the Jacksons, filed an unlawful detainer action against an individual named Steve Jones “even though,” according to appellant, “no [such person] lived on the [P]roperty.” The Jacksons voluntarily dismissed this action on August 14, 2008. The

2 trial court found that EMC’s action against Jones was a “ ‘fraudulent filing,’ ” and sanctioned the Jacksons $1,500. The Prior Action After two opportunities to amend his original complaint to state a cognizable cause of action, appellant filed a second amended complaint on May 5, 2009, asserting claims against Mortgage Store, MERS, EMC, and ETS. He alleged that the foreclosure sale that took place on October 2, 2007 was void or voidable because the auctioneer agent made a false promise to him, and because ETS, as the trustee that oversaw the sale, failed to comply with laws requiring notice to the mortgagor prior to foreclosure sale, and also violated its duties and obligations as trustee. He alleged the following five causes of action against all defendants: (1) setting aside foreclosure; (2) cancellation of deed; (3) civil conspiracy; (4) fraudulent, illegal, and unfair business practices; and (5) quiet title. EMC filed a demurrer to the second amended complaint, and on July 30, 2009, the trial court, Judge Ronni MacLaren, sustained the demurrer without leave to amend. The trial court ruled, “All of [appellant’s] claims are based on the allegation that there was irregularity in the foreclosure sale that resulted in EMC obtaining title to the [P]roperty. [Appellant] claims that if EMC had not acquired title to the [P]roperty, it would have gone to an unidentified bank, and [appellant] might have been able to repurchase it from the bank. [Appellant] claims he was told by the auctioneer that he would be able to repurchase the property, but he does not allege that the auctioneer had authority to speak for the bank or EMC. The facts do not show that [appellant] has any enforceable right to reaquire the [P]roperty . . . [Appellant] cannot establish the element of causation, which is fatal to all of his claims based on loss of the [P]roperty.” The trial court further found that it was not reasonably likely appellant would be able to state a viable claim against EMC if leave to amend was granted. The trial court dismissed the second amended complaint with prejudice, and appellant did not appeal the trial court’s decision. Instant Action On April 23, 2010, appellant filed a new complaint (the Instant Action) against EMC and MERS, seeking to undo the October 2, 2007 foreclosure sale. On June 9, 2010,

3 appellant voluntarily dismissed MERS from the action. Appellant then filed the operative first amended complaint (FAC) on March 14, 2011, naming EMC and the Jacksons as defendants. Appellant alleged in his FAC that EMC conducted an illegal trustee’s sale and sold the Property back to itself without providing proper notice to appellant. He alleged that EMC made “promises and representations” “that they would abide by the laws of the State of California,” “with the intent to induce [appellant] to (1) enter the Note and Deed of Trust and (2) refrain from taking legal action to prevent [EMC] from selling his home at any future trustee’s sale.” He alleged as to the Jacksons that they “conspir[ed] among[] themselves and out of frustration and a desire to quickly obtain the eviction of [appellant] from the [Property], filed an Unlawful Detainer against a party named ‘Steve Jones,’ . . . [knowing] . . . there was no ‘Steve Jones’ in the [Property]. They intentionally filed a bogus case and actually succeeded in the process as far as having a Writ of Possession issued.” Appellant alleged nine causes of action against EMC: (1) breach of contract; (2) breach of implied covenant of good faith and fair dealing; (3) fraud and deceit; (4) wrongful foreclosure; (5) abuse of process; (6) unfair business practices; (7) declaratory relief; (8) injunctive relief; and (9) quiet title. He alleged three of those causes of action — abuse of process, unfair business practices, and injunctive relief — also against the Jacksons.

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Bluebook (online)
Ratliff v. EMC Mortgage CA1/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ratliff-v-emc-mortgage-ca13-calctapp-2013.