Testimonial Cathedral etc. v. EquityKey Real Estate Option CA2/8

CourtCalifornia Court of Appeal
DecidedNovember 18, 2025
DocketB331522
StatusUnpublished

This text of Testimonial Cathedral etc. v. EquityKey Real Estate Option CA2/8 (Testimonial Cathedral etc. v. EquityKey Real Estate Option CA2/8) 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
Testimonial Cathedral etc. v. EquityKey Real Estate Option CA2/8, (Cal. Ct. App. 2025).

Opinion

Filed 11/18/25 Testimonial Cathedral etc. v. EquityKey Real Estate Option CA2/8 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SECOND APPELLATE DISTRICT

DIVISION EIGHT

TESTIMONIAL CATHEDRAL B331522 LOCAL CHURCH OF GOD IN CHRIST, Los Angeles County Super. Ct. No. Plaintiff and Respondent, 19STCV37123

v.

EQUITYKEY REAL ESTATE OPTION, LLC et al.,

Defendants and Appellants.

APPEAL from a judgment of the Superior Court of Los Angeles County, Timothy Patrick Dillon, Judge. Affirmed. Much Shelist and Ryan N. Burns for Defendants and Appellants. Richard Hofman for Plaintiff and Respondent. ____________________ Two sides came away from a 2008 deal with vastly different views of the deal. One side viewed it as life insurance for an elderly pastor of a small church in South Central Los Angeles. The other side maintained it had contracted to participate in the appreciation of the church property, albeit with a life insurance component to the deal. More than a decade after the deal documents were signed, the church sued the company to end the company’s interest in the church property. After a bench trial, the court agreed the company’s lien was the product of fraud and cancelled it. The company challenges the court’s statute of limitation ruling and its monetary award. We affirm. I We provide some background in a light favoring the judgment. We focus on facts relevant to the main issue of statute of limitations. (See Gomez v. Smith (2020) 54 Cal.App.5th 1016, 1026–1027, 1031 [in bench trials with a statement of decision, appellate courts resolve evidentiary conflicts in support of the trial court’s decision and give the evidence most favorable to the respondent the benefit of every reasonable inference].) A The plaintiff is Testimonial Cathedral Local Church of God in Christ, which we call the Church. The Church describes itself as a small South Central church that serves the poor and homeless and barely generates enough income to pay its debt. Bishop Jimmy B. Hackworth is the founder and longtime pastor of the Church. At the time of the challenged transaction, he was in his seventies and disabled. By 2008, Hackworth had developed tremors in his hand and could not sign his name. As a result, he had granted powers of attorney to family members to sign documents for him.

2 Hackworth has four daughters, all of whom worked for the Church at some point. One daughter, Angela Hackworth Wilson, was a Church administrator in 2008. She eventually took over as pastor. Wilson assisted her father at the time of the transaction. A Special Power of Attorney from 2007 granted Wilson the power to, among other things, convey property commonly known as 5707 to 5717 and 5615 South Western Avenue, Los Angeles, California 90062 for Hackworth. This is some of the Church’s property. The defendants are EquityKey Real Estate Option, LLC and EK Trust Services, LLC, which together we call EquityKey. EquityKey’s broker Steven Sharpe and a man named Frank Wheaton were the individuals who approached Hackworth about the transaction. Wheaton had been a legal advisor to Hackworth. He also was a friend and a churchgoer. As the Church frames it, Wheaton and Sharpe, who were both representatives of EquityKey, teamed up to trick the elderly Hackworth to convey an interest in the Church’s property and make an end run around its board, knowing he lacked this authority, while falsely representing the deal was just a personal deal about life insurance. After the Wheaton-Sharpe team presented the deal to Hackworth, Wilson joined her father at meetings about the deal. At one meeting, she was presented with voluminous documents and was pressured to sign them. She did not read everything. She did not understand the documents and told Wheaton and Sharpe this. She said she was uncomfortable and had concerns. They purported to explain the documents to her and assured her there was nothing to worry about: the deal was just about life

3 insurance, the Church was not involved, and the papers documented the insurance transaction. Specifically, EquityKey would obtain a $4 million life insurance policy on Hackworth’s life and be named beneficiary. A doctor came to Hackworth’s home to examine him in connection with the deal. EquityKey paid Hackworth $400,000, although it promised to pay more. Hackworth gave half of it to his daughters and $40,000 to the Church to repair its roof. Wilson used her share to pay for schooling. The Church entered the picture only as part of Hackworth’s assets. To boost Hackworth’s net worth and thus the value of the insurance, Hackworth was supposed to list the Church’s property as one of his properties. As Wilson explained it, Hackworth would need to transfer the Church property temporarily to himself and then transfer it back “as soon as the deal closed[.]” These actions are reflected in a partly handwritten grant deed from 2008 and a printed grant deed from 2009. A handwritten note on the latter deed says, “This conveyance changes the manner in which title is held, grantor(s) and grantee(s) remain the same and continue to hold the same proportionate interest.” Both deeds were recorded, and both purport to be signed by Hackworth. Robert Wheaton, who is Frank Wheaton’s nephew, notarized the 2008 deed. According to Wilson, they would not have gone through with the deal if they knew it affected the Church. The deal was presented as a personal deal concerning only Hackworth. There was no mention of EquityKey placing a lien against the Church. From EquityKey’s perspective, the deal was about investing in real property. EquityKey’s principal and founder Jeffrey Nash explained the company’s product was an alternative to a reverse

4 mortgage intended for “older homeowners.” Back in 2008, EquityKey could not do a deal with entities because the product was tied to a person’s life. The parties here had many months for due diligence. The contract documents clearly spelled out EquityKey’s right to participate in the potential future appreciation of specified property, and its option to acquire this property upon either Hackworth’s death or his breach of contract. EquityKey also would take out a life insurance policy on Hackworth to mitigate the risk of him passing away before the property appreciated and to provide funds to acquire the property. The key documents are the Real Estate Investment Agreement; the Performance Deed of Trust (which the parties call the PDOT); and the Important Terms to Your Real Estate Investment Agreement, which we call the Terms. The trial court aptly characterized the first two documents as densely written documents in small and very small print. Nash testified clients could not change the documents. The investment agreement is between “Qualified Homeowner” Hackworth and “Investor” EquityKey. It lists the Qualified Homeowner’s address as 5701-5721 S. Western Avenue, Los Angeles, CA 90062—which encompasses the Church’s address—and provides a “Property Description” (“APN No. 5005- 031-041; 5005-032-037; 5005-032-038; 5005-032-039”). The agreement refers to “Homeowner” throughout and reads like a contract with an individual homeowner concerning a residence. The agreement provides, among many other things, that in exchange for an Investment Fee, “we” are entitled to share in the appreciation of the property and acquire it at the end of the Investment Term. It defines the Performance Deed of Trust as

5 the “special lien we record against the Property to secure the performance” of the agreement.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rosenthal v. Great Western Financial Securities Corp.
926 P.2d 1061 (California Supreme Court, 1996)
Hobart v. Hobart Estate Co.
159 P.2d 958 (California Supreme Court, 1945)
Eisenbaum v. Western Energy Resources, Inc.
218 Cal. App. 3d 314 (California Court of Appeal, 1990)
Broberg v. Guardian Life Insurance Co. of America
171 Cal. App. 4th 912 (California Court of Appeal, 2009)
Federal Deposit Insurance Corp. v. Dintino
167 Cal. App. 4th 333 (California Court of Appeal, 2008)
Williams v. Hilb, Rogal & Hobbs Insurance Services of California Inc.
177 Cal. App. 4th 624 (California Court of Appeal, 2009)
Ferguson v. Yaspan CA2/2
233 Cal. App. 4th 676 (California Court of Appeal, 2014)
Jameson v. Desta
420 P.3d 746 (California Supreme Court, 2018)
Wilcox v. Wilcox
124 Cal. App. 4th 492 (California Court of Appeal, 2004)
Krolikowski v. San Diego City Employees' Ret. Sys.
234 Cal. Rptr. 3d 499 (California Court of Appeals, 5th District, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Testimonial Cathedral etc. v. EquityKey Real Estate Option CA2/8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/testimonial-cathedral-etc-v-equitykey-real-estate-option-ca28-calctapp-2025.