Thompson v. Ioane CA6

CourtCalifornia Court of Appeal
DecidedFebruary 8, 2021
DocketH046111
StatusUnpublished

This text of Thompson v. Ioane CA6 (Thompson v. Ioane CA6) 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
Thompson v. Ioane CA6, (Cal. Ct. App. 2021).

Opinion

Filed 2/8/21 Thompson v. Ioane CA6 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SIXTH APPELLATE DISTRICT

RICHARD L. THOMPSON, H046111 (Santa Cruz County Plaintiff and Respondent, Super. Ct. No. CV179290)

v.

MICHAEL IOANE, SR. et al.,

Defendants and Appellants.

This appeal involves a decades-long dispute over real property located on Blue Gum Avenue in Capitola (the Blue Gum property). Plaintiff Richard L. Thompson, as Successor in Interest to James J. Thompson, successfully moved for summary judgment on causes of action for quiet title and declaratory relief, and the trial court entered judgment in Thompson’s favor. Defendants Michael S. Ioane, Sr., Shelly J. Ioane, and their adult children, Briana C. Ioane, Ashley M. Ioane, and Michael S. Ioane, Jr. (collectively, the Ioanes), proceeding in propria persona, appeal.1 We shall affirm. I. BACKGROUND A. Factual Background2 In late 1992, Arthur Michael Alvarez obtained a $260,000 loan from Commerce Security Bank. The note evidencing Alvarez’s loan was secured by a deed of trust (the

1 We refer to the Ioanes by their first names for purposes of clarity. We refer to Michael S. Ioane, Sr. as “Michael” and to Michael S. Ioane, Jr. as “Michael, Jr.” 2 We base our factual summary in part on the appellate records in Thompson v. Ioane (2017) 11 Cal. App. 5th 1180 (Thompson), case Nos. H043112 and H042104, Deed of Trust) on the Blue Gum property. The Deed of Trust identified First American Title Insurance Company as the trustee. Commerce Security Bank was the beneficiary or lender and Alvarez was the trustor or borrower.3 Commerce Security Bank transferred its interest in the Deed of Trust to The Prudential Home Mortgage Company, Inc. in January 1993. In June 1994, The Prudential Home Mortgage Company, Inc. transferred its interest in the Deed of Trust to First Trust National Association, as trustee, Series # 1993-6. In October 1997, First Trust National Association, as trustee, Series # 1993-6, by attorney in fact Norwest Mortgage, Inc., substituted Lonestar Mortgagee Services, LLC (Lonestar) as trustee under the Deed of Trust. Alvarez defaulted on his loan. Lonestar, through its attorney in fact, recorded a Notice of Default and Election to Sell Under Deed of Trust on October 22, 1997.

two prior appeals in this case; we previously granted Michael’s request for judicial notice of those appellate records. On November 4, 2019, the Ioanes requested that this court take judicial notice of (1) various recorded documents pertaining to the Blue Gum property (items 1-18, 23, 27, 32); (2) court records from Michael’s bankruptcy cases (items 19, 20, 24-26); (3) other court documents (items 22, 28, 29, 31); (4) institution history for First Trust National Association maintained by the National Information Center of the Federal Reserve System (item 21); and (5) an email exchange with the individual who signed the deed granting the Blue Gum property to the Thompsons (item 30). Many of these documents are filings in this case or were admitted as evidence below such that they already are part of the appellate record and judicial notice is not necessary. The remaining documents purportedly establish Briana’s chain of title to the Blue Gum property or demonstrate the invalidity of the 1998 foreclosure sale. As discussed below, the doctrine of issue preclusion bars the Ioanes from relitigating either of those issues, making those documents irrelevant (Jordache Enterprises, Inc. v. Brobeck, Phleger & Harrison (1998) 18 Cal.4th 739, 748, fn. 6 [declining to take judicial notice of materials not “necessary, helpful, or relevant”]). Therefore, the request for judicial notice is denied. 3 “In California, the financing or refinancing of real property generally is accomplished by the use of a deed of trust. [Citation.] Under a deed of trust, ‘the borrower, or “trustor,” conveys nominal title to property to an intermediary, the “trustee,” who holds that title as security for repayment of the loan to the lender, or “beneficiary.” ’ [Citation.]” (Orcilla v. Big Sur, Inc. (2016) 244 Cal.App.4th 982, 994-995.)

2 The Ioanes contend that Alvarez had executed a second deed of trust, which was foreclosed before the first Deed of Trust. They trace their claim of title to that second deed of trust. Michael filed for bankruptcy in the United States Bankruptcy Court for the Northern District of California on February 26, 1998 (case No. 98-51454-JRG-13). The Ioanes contend that the Blue Gum property was an asset of the bankruptcy estate. On July 15, 1998, the bankruptcy court found “that the case [had been] filed in bad faith” and ordered the automatic stay “terminated with respect to the interests of Bank United, it’s [sic] agents, successors and assigns,” in the Blue Gum property.4 The court further ordered “that Bank United may proceed to exercise its rights under its Note and Deed of Trust, and to conduct and complete a non-judicial foreclosure sale of the Property in any manner permitted by law” and that “the relief granted in this order shall be effective in any other bankruptcy case . . . subsequently by this debtor filed with regard to the Property within one hundred eighty days from the date of entry of this order.” Also on July 15, 1998, the bankruptcy court dismissed the case with prejudice “because it was filed in bad faith and is an abuse of the bankruptcy process” and ordered that Michael was “barred for a period of 180 days from July 8, 1998, from being a debtor in any case under this title pursuant to 11 U.S.C. §109(g),(1).”

4 Evidence establishing Bank United’s role and connection to the Deed of Trust has not been submitted in this matter. Thompson asserts that Bank United acted as “loan servicer and as agent on behalf of [First Trust National Association].” For that assertion, he relies on allegations in an unlawful detainer complaint involving the Blue Gum property and a statement in a court order dismissing a federal civil action brought by Michael and Shelly regarding the Blue Gum property. However, we cannot judicially notice the truth of those statements. (Lockley v. Law Office of Cantrell, Green, Pekich, Cruz & McCort (2001) 91 Cal.App.4th 875, 882 [“while courts are free to take judicial notice of the existence of each document in a court file, including the truth of results reached, they may not take judicial notice of the truth of hearsay statements in decisions and court files”].)

3 Despite that order, Michael filed another Chapter 13 bankruptcy case on July 24, 1998. The Ioanes contend that the Blue Gum property was an asset of the bankruptcy estate. On August 26, 1998, Lonestar executed a Trustee’s Deed Upon Sale granting title to the Blue Gum property to Norwest Mortgage, Inc., “the highest bidder” on the property at the August 19, 1998 public auction. That Trustee’s Deed Upon Sale erroneously identified Norwest Mortgage, Inc. as grantee. Accordingly, a corrective Trustee’s Deed Upon Sale was recorded in October 1998 correctly identifying the grantee as First Trust National Association, as trustee, Series # 1993-6, by Norwest Mortgage, Inc., attorney in fact. Michael’s second bankruptcy case was dismissed on September 11, 1998. On October 19, 1998, Bank United filed an unlawful detainer action against Michael in Santa Cruz County Superior Court case number MS981411.

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