Turner v. Center Street Lending Services CA2/5

CourtCalifornia Court of Appeal
DecidedDecember 16, 2021
DocketB305895
StatusUnpublished

This text of Turner v. Center Street Lending Services CA2/5 (Turner v. Center Street Lending Services CA2/5) 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
Turner v. Center Street Lending Services CA2/5, (Cal. Ct. App. 2021).

Opinion

Filed 12/16/21 Turner v. Center Street Lending Services CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FIVE

LAWRENCE TURNER, B305895

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. v. BC648429)

CENTER STREET LENDING SERVICES et al.,

Defendants and Respondents.

APPEAL from an order of the Superior Court of Los Angeles County, Patricia Nieto, Judge. Affirmed. TamerLawCorp, Steven Michael Tamer, for Plaintiff and Appellant. Fidelity National Law Group, Kevin R. Broersma, for Defendant and Respondent Center Street Lending Services, MP IV, LLC. Wedgewood, Elaine Yang, for Defendant and Respondent Duke Partners II, LLC. We consider whether a trial court’s resolution of a forgery defense at an unlawful detainer trial was properly given preclusive effect in a later civil action seeking relief on the same forgery theory.

I. BACKGROUND1 A. Pertinent Transactions Involving the Real Property in Question In November 1993, plaintiff and appellant Lawrence Turner (Turner) acquired property located at 1459 E. 121st Street, Los Angeles, CA 90059 (the Property). Turner later executed a grant deed conveying his interest in the Property to the Lawrence Nathaniel Turner Revocable Living Trust (the Trust). In his capacity as trustee, Turner then signed a deed of trust using the Property as security for a $275,000 loan from Wells Fargo. Subsequently, in October 2013, a grant deed conveyed the Trust’s ownership interest in the Property to Diversified Realty and Financial Services (Diversified). This document, which we shall refer to as the Diversified Deed, is central to this appeal. On its face, it appears to be signed on October 9, 2013, by Turner in his capacity as Trustee of the Trust. (As we will soon discuss,

1 Our recitation of the pertinent background is drawn from the allegations in the operative complaint, exhibits attached to the complaint, and documents judicially noticed by the trial court. (Angelucci v. Century Supper Club (2007) 41 Cal.4th 160, 166 [“‘A motion for judgment on the pleadings, like a general demurrer, tests the allegations of the complaint or cross- complaint, supplemented by any matter of which the trial court takes judicial notice . . . .’”].)

2 Turner claims he never signed the Diversified Deed and his signature on it is a forgery.) The following month, Turner executed another grant deed conveying his interest in the Property to himself in his capacity as Trustee of the Trust. Both the Diversified Deed and the later- signed November 2013 grant deed were notarized on November 18, 2013, and recorded on January 30, 2014. Diversified executed a deed of trust pledging the Property as collateral to secure a $108,000 loan from defendant and respondent Center Street Lending Services, MP IV, LLC (Center Street). Rashid K. Khalfani (Khalfani), also known as Christopher Lee (as Turner would later discover), signed on behalf of Diversified as its managing member. The following day, Diversified executed a grant deed conveying its ownership interest in the Property to Capital Cove Asset Management (Capital Cove).2 Khalfani again signed the grant deed on behalf of Diversified as managing member.

B. The Capital Cove Unlawful Detainer Action In October 2014, Capital Cove filed an unlawful detainer lawsuit against Turner. The unlawful detainer complaint alleged the Property was sold to Capital Cove in January 2014 and title had been duly perfected. One of the exhibits attached to the complaint and incorporated by reference was the Diversified Deed. In May 2015, the trial court resolved the unlawful detainer case via a statement of decision following a bench trial. The

2 Turner understood Khalfani was also Capital Cove’s principal.

3 statement of decision indicates trial began on May 21, 2015, and concluded on May 26, 2015; both parties were represented by counsel. The statement of decision further reports the court ruled on motions, heard testimony from witnesses for both sides, considered objections to evidence, and admitted exhibits in evidence.3 According to the statement of decision, Turner sought to defend against the unlawful detainer by arguing Capital Cove had not perfected title to the Property. The court permitted Turner to mount such a defense and present evidence within the framework of the unlawful detainer action. As pertinent for our purposes, the trial court’s statement of decision explains Turner’s defense included his denial that the signature on the Diversified Deed, as well as other documents relating to the Property, was actually his. A witness for Capital Cove (one Mr. Clarke) rebutted the assertion by testifying he spoke with Turner about a short sale on behalf of Diversified in the last quarter of 2013, managed the short sale, and personally met with Turner in 2014. The witness testified Turner was “upside down” on the Property via a home equity loan debt to Wells Fargo and wanted to get out of the debt. The trial court also admitted documents Capital Cove and Diversified relied on in purchasing the Property, including a January 2014 letter from Wells Fargo approving a short sale to Diversified that would fully resolve Turner’s home equity loan and a May 2013 letter from Turner stating he needed a short sale to save him from foreclosure. Considering this and other evidence, the trial court acknowledged “Turner denied signing these documents” but

3 No reporter’s transcript of the unlawful detainer trial was lodged with the court below or with this court on appeal.

4 concluded “Turner’s testimony in this respect lacked credibility” and found, after “reviewing the signatures as well as the exhibits, the certified notarizations, and Mr. Clarke’s testimony” that “all these documents were in fact signed by Turner as indicated.” Turner appealed the trial court’s unlawful detainer judgment. The appellate division of the superior court affirmed. The appellate division recognized Turner had contended and continued to maintain his signature on the Diversified Deed was a forgery, but the appellate division concluded there was “overwhelming” evidence supporting the trial court’s decision to reject the contention as not credible. The appellate division specifically rejected Turner’s argument that expert testimony was required to authenticate his signature and held (consistent with established law (Evid. Code, § 1417)) that the trial court was entitled to make its own determination regarding the genuineness of handwriting based on the evidence presented.

C. Subsequent Events and This Lawsuit Although the unlawful detainer matter proceeded to judgment and subsequent affirmance, it appears Turner was not at that time ejected from the property. Instead, Prestige Default Services would record a Notice of Default years later, in September 2016, asserting Diversified was in arrears on the previously executed deed of trust. Prestige recorded a Notice of Trustee’s Sale in January 2017. Defendant and respondent Duke Partners II, LLC (Duke Partners) was the successful bidder at the trustee’s sale. Turner asserts that Duke Partners then commenced its own unlawful detainer proceedings and ultimately had Turner evicted from the Property.

5 Turner then filed a civil complaint against Center Street, Capital Cove, Diversified, and others. Several amended complaints ensued, ultimately resulting in the operative fourth amended complaint (the operative complaint), filed in April 2018, that named Duke Partners as an additional defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
Turner v. Center Street Lending Services CA2/5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-v-center-street-lending-services-ca25-calctapp-2021.