Slintak v. Buckeye Retirement Co., LLC

43 Cal. Rptr. 3d 131, 139 Cal. App. 4th 575, 2006 Cal. Daily Op. Serv. 4002, 2006 Daily Journal DAR 5863, 2006 Cal. App. LEXIS 723
CourtCalifornia Court of Appeal
DecidedMay 16, 2006
DocketB182875
StatusPublished
Cited by17 cases

This text of 43 Cal. Rptr. 3d 131 (Slintak v. Buckeye Retirement Co., LLC) 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
Slintak v. Buckeye Retirement Co., LLC, 43 Cal. Rptr. 3d 131, 139 Cal. App. 4th 575, 2006 Cal. Daily Op. Serv. 4002, 2006 Daily Journal DAR 5863, 2006 Cal. App. LEXIS 723 (Cal. Ct. App. 2006).

Opinion

*578 Opinion

ZELON, J.

Appellant Buckeye Retirement Co., L.L.C., Ltd. (Buckeye), appeals from summary judgment entered on the cross-complaint of Anna Slintak and Bohumir Marik (collectively Marik) for quiet title and cancellation of a deed of trust held on property owned by Marik. The trial court held that Buckeye’s right to foreclose on a deed of trust encumbering Marik’s property had expired under the statute of limitations of the Marketable Record Title Act (MRTA) (Civ. Code, § 880.020 et seq.), 1 and that no exceptions or equitable tolling applied to the statute of limitations of the MRTA. We reverse on the ground the statute of limitations has not run due to the filing of lis pendens in separate, but related, litigation.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

1. Background Facts.

On October 23, 1989, Redondo Blacksmith, Inc. (RBI), 2 as part of a plan to develop property in Fontana, California, gave Metro Bank (Metro) a trust deed (Metro Trust Deed) on real property located at 350 North Pacific Coast Highway in Redondo Beach, California (Redondo property). The Metro Trust Deed was intended to partially collateralize a loan (Juniper Note) Metro was making to Juniper Park Villa Investment, L.L.P. (Juniper), to purchase property in Fontana (Fontana property), and was additional collateral for the Juniper Note. The Metro Trust Deed was recorded on October 27, 1989, in the records of Los Angeles County. The Juniper Note was also secured by a trust deed on the Fontana property (Fontana Trust Deed). Juniper purchased the land in Fontana with the proceeds of the loan, but the property was not developed.

In 1992, RBI executed three promissory notes payable to Martin Slintak, Anna Slintak, and Jacobs Investments, and gave each of them trust deeds on the Redondo property. These notes are junior to the Juniper Note.

On May 15, 1992, Metro recorded a notice of default and election to sell on the Fontana property under the Fontana Trust Deed. 3 On October 21, 1992, Metro assigned the Juniper Note to MNSB Properties, Inc. (MNSB), a *579 wholly owned subsidiary of Metro, and the assignment of the Fontana Trust Deed was recorded on October 29, 1992. On October 22, 1992, MNSB submitted a credit bid at Metro’s tmstee’s sale, and acquired title to the Fontana property.

On October 28, 1992, after the foreclosure of the Fontana Tmst Deed, Metro recorded a notice of default on the Redondo property under the Metro Tmst Deed (October 1992 Notice of Default). The October 1992 Notice of Default stated that the Juniper Note was “due on January 23, 1992.” On October 21, 1992, Metro assigned the Metro Tmst Deed to its wholly owned subsidiary, MNSB Properties, Inc. 4 On November 13, 1992, the Federal Deposit Insurance Corporation (FDIC) became Metro’s receiver, and the scheduled tmstee’s sale of the Redondo property was not conducted.

In 1993, RBI conveyed the Redondo property to Bohumir Marik.

On July 16, 1993, Bohumir Marik commenced an action in the United States District Court in Missouri against the FDIC as receiver for Metro for cancellation of the Metro Tmst Deed to halt the foreclosure of the Redondo property. Marik’s complaint alleged that the $1.5 million Metro Tmst Deed was invalid and it did not encumber the Redondo property. On November 21, 1995, Marik filed a lis pendens based on the Missouri federal action with the Los Angeles County Recorder. This action was later terminated.

In January 1996, Marik filed an action to quiet title in the Los Angeles County Superior Court against the FDIC. Marik alleged that the assignment of the Juniper Note to MNSB also transferred the Metro Tmst Deed to MNSB; because MNSB was not in receivership, the FDIC never acquired any interest in either the Metro Tmst Deed or the Juniper Note. The FDIC removed the action to the United States District Court for the Central District of California. In 1997, the district court agreed and found that the Metro Tmst Deed was not an asset of the FDIC because the Juniper Note had been assigned to MNSB prior to Metro’s receivership. The court dismissed the FDIC action, and because federal jurisdiction no longer existed, remanded the matter to state court. The state court refused to enter judgment because a final judgment had been entered in the district court, a mling that was upheld on appeal.

On September 21, 1999, MNSB assigned its interest in the Juniper Note and Metro Tmst Deed to the FDIC. In 1999, Marik commenced another quiet title action in the California state court against the FDIC and Juniper, and filed a lis pendens giving notice of the action with the Los Angeles County *580 Recorder. The action was removed to Missouri federal court, where it was dismissed for failure to exhaust administrative remedies in September 2000. That ruling was upheld on appeal in July 2001.

In May 2001, the FDIC sold the Juniper Note to Cadle Company (Cadle) and assigned the Metro Trust Deed to Cadle. On May 15, 2001, Cadle assigned the Juniper Note to Buckeye, and recorded the notice of assignment of the Metro Trust Deed on September 23, 2002.

On January 14, 2003, Buckeye commenced this action for judicial foreclosure and breach of contract. The record does not indicate a lis pendens was recorded. On April 30, 2003, Anna Slintak and her son Martin Slintak and Jacobs Investments filed a cross-complaint for quiet title and cancellation of deed of trust, naming Buckeye, RBI, and Marik, among others, as cross-defendants. On October 2, 2003, after defendants demurred to the complaint and two amended complaints, Buckeye dismissed the second amended complaint without prejudice. The cross-complaint remained pending.

On October 10, 2003, Buckeye recorded another notice of default and election to sell the Redondo property. On February 27, 2004, the trial court issued a preliminary injunction enjoining Buckeye’s trustee’s sale.

On April 14, 2004, pursuant to stipulation of the parties, cross-complainants amended their cross-complaint to change the parties to Marik and his wife Anna Slintak as cross-complainants, and Buckeye and Les Zieve as cross-defendants. Marik added claims for declaratory relief and injunctive relief and eliminated the claim for quiet title. In particular, the first amended cross-complaint alleged that any action to enforce the Metro Trust Deed was barred by the MRTA because the October 1992 Notice of Default stated the note was due and payable on January 23, 1992.

2. Cross-complainants’ Summary Judgment Motion and Buckeye’s Motion for Reconsideration.

Marik moved for summary judgment on the cross-complaint, contending the power of sale of the Metro Trust Deed had expired under section 882.020, part of the MRTA, because more than 10 years had elapsed from the due date of the Juniper Note as evidenced by the October 1992 Notice of Default in the record. 5

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43 Cal. Rptr. 3d 131, 139 Cal. App. 4th 575, 2006 Cal. Daily Op. Serv. 4002, 2006 Daily Journal DAR 5863, 2006 Cal. App. LEXIS 723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slintak-v-buckeye-retirement-co-llc-calctapp-2006.