Tabrizi v. JP Morgan Chase CA4/1

CourtCalifornia Court of Appeal
DecidedApril 29, 2014
DocketD062847
StatusUnpublished

This text of Tabrizi v. JP Morgan Chase CA4/1 (Tabrizi v. JP Morgan Chase 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
Tabrizi v. JP Morgan Chase CA4/1, (Cal. Ct. App. 2014).

Opinion

Filed 4/29/14 Tabrizi v. JP Morgan Chase CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

BEHNAM TABRIZI, D062847

Plaintiff and Appellant,

v. (Super. Ct. No. 37-2012-00090805- CU-OR-CTL) JP MORGAN CHASE BANK et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of San Diego County, Timothy

Taylor, Judge. Affirmed.

Law Offices of Dennis Moore and Dennis Howard Moore for Plaintiff and

Appellant

Alvarado Smith, Theodore E. Bacon and David J. Masutani for Defendants and

Respondents.

Behnam Tabrizi appeals from an adverse judgment on grounds of res judicata in

his lawsuit against JP Morgan Chase Bank (Chase) and California Reconveyance Company (CRC) arising out of the foreclosure on two properties that Tabrizi owns. The

trial court's conclusion that res judicata applied was based on the judgments in two prior

lawsuits that Tabrizi filed to challenge Chase's foreclosure on the two properties. We

conclude that the trial court properly sustained the demurrer on the ground of res judicata,

and we accordingly affirm the judgment.

I

FACTUAL AND PROCEDURAL BACKGROUND

A. Tabrizi's Default on Two Deeds of Trust

This lawsuit challenged Chase's attempt to foreclose on two properties owned by

Tabrizi.

1. The Northern Lights Property

The first property is located at 7571 Northern Lights in San Diego (the Northern

Lights property). In October 2007 Tabrizi obtained a loan in the amount of $2,430,000

from Washington Mutual Bank (WaMu) secured by a deed of trust encumbering the

Northern Lights property, with CRC as the trustee.

The Federal Deposit Insurance Corporation (the FDIC) was appointed as receiver

of WaMu in September 2008. Pursuant to an agreement between Chase and the FDIC,

Chase purchased certain assets of WaMu, pursuant to which Chase allegedly became the

beneficiary of the deed of trust on the Northern Lights property.1

1 Tabrizi alleges in the operative complaint in this action that the agreement between WaMu and the FDIC has not been finalized.

2 Tabrizi became delinquent on his loan payments on the Northern Lights property,

and CRC and Chase took steps to foreclose. Specifically, on April 13, 2010, CRC

recorded a notice of default on the deed of trust secured by the Northern Lights property,

stating that Tabrizi was in default on his loan payments in the amount of $55,448. A

notice of trustee sale was recorded on September 1, 2011, for the Northern Lights

property.

2. The Encendido Property

Tabrizi's second property is located at 14911 Encendido in San Diego (the

Encendido property). Tabrizi obtained a loan from WaMu in January 2008 in the amount

of $2,000,000 secured by a deed of trust encumbering the Encendido property. In 2010,

CRC was substituted as the trustee for the deed of trust on the Encendido property. As a

result of Chase's purchase of certain assets of WaMu, Chase also allegedly became the

beneficiary of the deed of trust on the Encendido property.

Tabrizi became delinquent on his loan payments on the Encendido property.

Specifically, on February 8, 2010, CRC recorded a notice of default on the deed of trust

secured by the Encendido property, stating that Tabrizi owed $92,894.81 in loan

payments. A notice of trustee sale was recorded on October 14, 2010, for the Encendido

B. The Lawsuits

Tabrizi filed two separate lawsuits in San Diego County Superior Court to

challenge the foreclosures on the Northern Lights property and the Encendido property.

3 1. The Northern Lights Lawsuit

With respect to the foreclosure on the Northern Lights property, in May 2010

Tabrizi filed suit against Chase in San Diego County Superior Court (Tabrizi v. Chase

Home Finance, LLC, No. 37-2010-00091526-CU-OR-CTL) (the Northern Lights

lawsuit).2 The initial complaint alleged several causes of action asserting various

theories of fraud and concealment, as well as negligence. A second amended complaint

alleged causes of action for fraud, wrongful foreclosure, and violation of Business and

Professions Code section 17200. In the Northern Lights lawsuit, Tabrizi alleged (1) that

Chase was improperly foreclosing on the Northern Lights property because WaMu had

fraudulently induced Tabrizi to obtain a loan he could not afford; (2) that Chase had

unreasonably denied Tabrizi the right to modify the terms of his loan; and (3) that Chase

did not follow the required statutory procedures governing foreclosures, which

purportedly included "[f]ailure to serve upon [Tabrizi] notice of assignment of the Note

pursuant to California Civil Code § 2932 et [s]eq." Tabrizi sought an order restraining

Chase from proceeding with the foreclosure, and an order rescinding any sale or transfer

of title.

2 As far as the appellate record reflects, CRC was not named as a defendant in the Northern Lights lawsuit. Instead, the original complaint and the second amended complaint alleged that Quality Loan Services Corp. was the trustee to the deed of trust secured by the Northern Lights property. We note that in supplemental briefing we requested from the parties, CRC stated that although not reflected in the appellate record, it was briefly sued as a defendant in one version of the complaint in the Northern Lights lawsuit (which is not contained in the appellate record), but was effectively dismissed without prejudice when an amended complaint was filed that did not name CRC as a defendant.

4 As relevant here, the initial complaint in the Northern Lights lawsuit specifically

alleged that Chase "claims that it is the current holder of the mortgage and/or other

security interests taken in the . . . loan transaction, despite the fact that public records do

not reflect any assignments from W[a]M[u] to [Chase] as required by law . . . ."

Chase prevailed in the Northern Lights lawsuit by obtaining summary judgment.

The trial court ruled that Chase had not assumed liability for WaMu's alleged misconduct

and that Chase submitted undisputed evidence that it complied with all of the statutory

requirements for foreclosure.

2. The Encendido Lawsuit

With respect to the Encendido property, in October 2010 Tabrizi filed suit against

Chase and CRC in San Diego County Superior Court (Tabrizi v. Chase Home Finance,

LLC, No. 37-2010-00103336-CU-OR-CTL) (the Encendido lawsuit). The initial

complaint alleged claims for fraud, failure to comply with the statutory requirement for

foreclosure, and violation of Business and Professions Code section 17200. Later

versions of the complaint added claims for unjust enrichment based on improper

foreclosure and breach of an alleged contract to allow Tabrizi to short-sell the Encendido

property. As in the Northern Lights lawsuit, Tabrizi alleged that WaMu had fraudulently

induced Tabrizi to obtain a loan he could not afford, that Chase unreasonably refused to

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