Tricoast Builders v. Lakeview Loan Servicing CA2/2

CourtCalifornia Court of Appeal
DecidedJanuary 26, 2021
DocketB297960
StatusUnpublished

This text of Tricoast Builders v. Lakeview Loan Servicing CA2/2 (Tricoast Builders v. Lakeview Loan Servicing CA2/2) 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
Tricoast Builders v. Lakeview Loan Servicing CA2/2, (Cal. Ct. App. 2021).

Opinion

Filed 1/26/21 Tricoast Builders v. Lakeview Loan Servicing CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 TWO

TRICOAST BUILDERS, INC., B297960

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. PC056615) v.

LAKEVIEW LOAN SERVICING, LLC et al.,

Defendants and Respondents.

APPEAL from a judgment and order of the Superior Court of Los Angeles County, Melvin D. Sandvig, Judge. Affirmed.

Connette Law Office and Michael T. Connette for Plaintiff and Appellant.

Houser, Robert W. Norman, Jr., and Timothy A. Schneider for Defendants and Respondents. ______________________________ Plaintiff and appellant TriCoast Builders, Inc. (TriCoast) appeals from a judgment entered in favor of defendants and respondents Lakeview Loan Servicing, LLC (Lakeview) and Cenlar FSB (Cenlar) (collectively defendants) following the trial court’s order sustaining a demurrer without leave to amend as to two causes of action and order granting summary judgment on the remaining two causes of action. TriCoast also appeals from a postjudgment order in which the court declined to set aside the order granting summary judgment. TriCoast contends that the court erred by (1) sustaining defendants’ demurrer without leave to amend; (2) not ordering a continuance of the hearing on defendants’ motion for summary judgment or, in the alternative, summary adjudication; and (3) not setting aside the order granting summary judgment. We affirm. FACTUAL BACKGROUND1 Nathaniel Fonnegra (Fonnegra) was the owner of a residential property located in Santa Clarita (property). On December 20, 2013, Fonnegra executed a promisory note for $372,000 in favor of Bankers Xpress, LLC. The note was secured by a deed of trust for the property, which was executed on December 20, 2013, and recorded on December 27, 2013.

1 The underlying facts summarized in this section are taken from the pleadings, evidence submitted in support of defendants’ motion for summary judgment/adjudication, and points of agreement in the parties’ appellate briefs. The summary is provided for context only. We resolve the specific issues raised by TriCoast on appeal based on the allegations in the second amended complaint and relevant procedural matters that are summarized in the procedural background section, infra.

2 In May 2014, the property was damaged by a fire. The insurer of the property issued a check for repairs, which was endorsed over to the servicer or subservicer of Fonnegra’s loan, Pacific Union Financial, LLC (Pacific Union). In June 2014, Fonnegra entered into a contract with TriCoast, a general building contractor, for the provision of construction services, labor, and materials to repair the property. When the job was 65 percent complete, Pacific Union inspected TriCoast’s work and, in early July 2015, issued a check for $43,641.50 payable to TriCoast and Fonnegra. Because Fonnegra did not endorse the check over to TriCoast, the check eventually went stale. According to TriCoast, it received “assurances of payment” by Fonnegra and G.D. Baca, Inc. (public adjuster) and continued its work on the property until it was about 85 percent complete. The contract between Fonnegra and TriCoast was terminated by Fonnegra on or about July 17, 2015. On September 3, 2015, TriCoast recorded a mechanic’s lien against the property in the amount of $99,805.05. The lien was recorded after TriCoast had ceased its work under the contract. Meanwhile, on or about July 16, 2015, Pacific Union transferred Fonnegra’s loan and $27,343.54 in insurance proceeds to defendants, with Lakeview as the servicer and Cenlar as the subservicer.2 Pacific Union held back $43,641.50 of the insurance proceeds to cover the check it had issued to Fonnegra and TriCoast. After that check went stale, Pacific Union transferred the $43,641.50 to defendants.

2 According to TriCoast, Lakeview was also the servicer of the loan prior to July 16, 2015, with Pacific Union as the subservicer.

3 In January and March 2016, Cenlar issued checks in the amounts of $40,000 and $30,985.04 to Fonnegra and his new contractor, Whitehouse Construction, Inc. (Whitehouse). PROCEDURAL BACKGROUND I. The Operative Complaint In the operative second amended complaint, TriCoast asserted four causes of action against defendants: foreclosure of mechanic’s lien, tortious interference with contractual relations, intentional interference with prospective economic advantage, and negligent interference with prospective economic advantage.3 The foreclosure of mechanic’s lien cause of action was based on allegations that defendants “may” have had “some right, title, or interest” in the property, but that such claims were “subject and subordinate to” TriCoast’s lien. The basis for the interference causes of action was that defendants disrupted Fonnegra’s performance of his contract with TriCoast by knowingly issuing a check to Fonnegra’s new

3 In addition to these causes of action against defendants, TriCoast asserted the cause of action for foreclosure of mechanic’s lien against Fonnegra; the causes of action for tortious interference with contractual relations and intentional interference with prospective economic advantage against the public adjuster, Whitehouse, and Pacific Union; and the cause of action for negligent interference with prospective economic advantage against the public adjuster and Pacific Union. TriCoast also asserted causes of action for breach of contract and for reasonable value of services rendered and goods provided against Fonnegra. Fonnegra, Pacific Union, Whitehouse, and the public adjuster are not parties to this appeal.

4 contractor, Whitehouse, for work completed by TriCoast, instead of reissuing the check that had gone stale to TriCoast.4 II. Demurrer Defendants demurred under Code of Civil Procedure section 430.10, subdivision (e),5 to the causes of action for intentional and negligent interference with prospective economic advantage. They argued that TriCoast failed to allege the existence of a future economic benefit, wrongful conduct by defendants, or that defendants owed a duty to TriCoast. The trial court sustained defendants’ demurrer to both causes of action, reasoning that TriCoast failed to allege that it “was likely to derive some future, rather than past, economic benefit or advantage from its relationship with . . . Fonnegra.” TriCoast had alleged that “the relationship between [TriCoast] and Fonnegra terminated on [July 17, 2015]” but did not allege that defendants caused the termination. The court concluded that TriCoast also failed to allege that defendants’ conduct “was wrongful in some way other than the interference itself” and noted that “[t]he allegation that [defendants] acted wrongfully is . . . belied by the allegation that [defendants] were deceived by . . . Whitehouse . . . into paying funds to Whitehouse for work completed by [TriCoast].” According to the court, the cause of action for negligent interference with prospective economic advantage was deficient for the additional reason that TriCoast

4 TriCoast also alleged, however, that the public adjuster and Whitehouse conspired to create false estimates to deceive defendants. 5 All further statutory references are to the Code of Civil Procedure unless otherwise indicated.

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Tricoast Builders v. Lakeview Loan Servicing CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tricoast-builders-v-lakeview-loan-servicing-ca22-calctapp-2021.