Vivian v. California Condominium Assn. CA2/8

CourtCalifornia Court of Appeal
DecidedNovember 5, 2021
DocketB301696
StatusUnpublished

This text of Vivian v. California Condominium Assn. CA2/8 (Vivian v. California Condominium Assn. 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
Vivian v. California Condominium Assn. CA2/8, (Cal. Ct. App. 2021).

Opinion

Filed 11/5/21 Vivian v. California Condominium Assn. CA2/8 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

ARDINE VIVIAN, B301696

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC663072) v.

CALIFORNIA CONDOMINIUM ASSOCIATION, INC.,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County. Robert S. Draper, Judge. Affirmed in part, reversed in part and remanded. The Community Law Group and Mark S. Smith for Plaintiff and Appellant. Lewis Brisbois Bisgaard & Smith, Jeffry A. Miller, Ernest Slome and Natasha Covarrubias for Defendant and Respondent. _____________________________ This is the fourth lawsuit Ardine Vivian has filed against the California Condominium Association, Inc. (the Association) involving the foreclosure of her condo based on a lien for delinquent association fees. The first three cases attempted to prevent foreclosure. She lost each of them, and her condo has since been sold via foreclosure sale. In the current case, Vivian seeks damages for wrongful foreclosure and fraud. The trial court sustained a demurrer based on the claim preclusion aspect of res judicata. On appeal, Vivian argues the trial court should have overruled the demurrer to her second amended complaint (SAC) because the court had already overruled a demurrer to the first amended complaint (FAC) on claim preclusion grounds and the SAC made only “typographical changes” to the FAC. She also argues the SAC was based on “new events” not involved in the prior cases. We affirm in part and reverse in part. We reject Vivian’s argument the trial court should not have considered the demurrer to the SAC. We conclude claim preclusion bars Vivian from asserting any claims based on the validity of the underlying lien, which was finally decided against her in 2008. However, claim preclusion does not bar her claims based on the most recent allegedly faulty notice of the foreclosure sale. For other reasons, her fraud claim fails. Because the Association did not brief the merits of Vivian’s wrongful foreclosure claim based on faulty notice, we leave it to the parties and trial court on remand. BACKGROUND We take the facts from the operative SAC, which we assume are true. (Cansino v. Bank of America (2014) 224 Cal.App.4th 1462, 1468 (Cansino).) The trial court granted

2 judicial notice of a host of complaints, rulings, and judgments in the prior cases, as well as recorded documents related to the property. We may consider those documents in evaluating the demurrer based on claim preclusion. (Boyd v. Freeman (2017) 18 Cal.App.5th 847, 855, fn. 3 (Boyd); Evid. Code, § 459, subd. (a).) We must accept the facts set forth in the judicially noticed material if they contradict allegations in the body of the complaint. (Cansino, at p. 1468.) 1. Allegations in the SAC Since 2007, Vivian owned a unit in a condominium complex in Long Beach. In late July or early August 2016, she had appraisers and potential buyers knocking at her door, asking to inspect the unit because it was in foreclosure. Vivian hired counsel to investigate. She discovered a notice of default had been recorded against her condo for delinquent condominium association dues, even though she was current on her dues and the condo was paid for. The notice of default was in the name of the prior owner, Robert Wilday, and Vivian had not been mailed a copy. A notice of trustee’s sale had also been recorded under Wilday’s name. Despite appealing to the Association to stop foreclosure activities, a foreclosure sale took place on August 5, 2016. Vivian found out about the sale from a letter she received on August 11, 2016, from the buyer of the property, inquiring whether she wanted to rent the home from him. Due to the foreclosure sale, Vivian lost $131,000 in equity 1 in her condo. She asserted damages claims for wrongful

1 We understand from appellate counsel for both sides at oral argument that the Association has yet to return the proceeds

3 foreclosure and fraud, alleging the Association did not have a valid security interest in the condo, and she was not given notice of the sale or the right to redeem, nor was she given the chance to meet and confer to mediate the dispute, in violation of various Civil Code provisions. Procedural History of the Current Case Vivian filed the original complaint in this case against the Association in May 2017, alleging claims for quiet title, wrongful 2 foreclosure, breach of contract, fraud, and an accounting. The Association demurred, arguing the claim preclusion aspect of res judicata barred her claims because Vivian had filed three prior actions to stave off foreclosure. The trial court agreed, sustaining the demurrer and granting Vivian leave to amend her wrongful foreclosure and fraud claims. Vivian withdrew the other claims. Vivian filed the FAC, alleging claims for wrongful foreclosure, fraud, and unjust enrichment, based on the same basic set of facts set forth above. However, in the FAC, she alleged the foreclosure sale took place on August 5, 2017, not on August 5, 2016, and she received the letter from the new owner on August 11, 2017. The Association again demurred, arguing the claims were barred by claim preclusion. The trial court overruled this demurrer. In rejecting claim preclusion, it relied on the 2017 dates alleged in the FAC: “Whether Vivian was served with proper notice of her foreclosure is [a] matter that has not been adjudicated on the merits.

from the foreclosure sale belonging to Vivian but instead has placed the proceeds into an escrow account. 2 Vivian also named Nationwide Reconveyance Co. as a defendant, but it is not a party to this appeal.

4 Vivian’s Complaint by its terms only references foreclosure notices and sales that were issued in 2017. Although similar allegations were made in Vivian’s complaint in her last action, her case was dismissed for failure to pay fees before any adjudication of the issue could take place.” (Internal citations omitted and italics added.) Vivian then filed an unopposed ex parte application to file the SAC to correct the 2017 foreclosure sale and discovery dates to 2016, characterizing the 2017 dates as the result of a “clerical error.” The court granted the request and allowed the SAC to be filed with the 2016 dates. The SAC alleged claims for fraud and wrongful foreclosure, dropping the unjust enrichment claim. The claims rested upon the Association’s alleged invalid interest in the condo and defects in the foreclosure notice. The Association once again demurred to the SAC, arguing claim preclusion. In opposition, Vivian argued the Association was barred from raising the same argument rejected in the demurrer to the FAC. In any case, Vivian argued the SAC was based on different notices of foreclosure than the prior cases. The trial court sustained the demurrer without leave to amend, 3 finding claim preclusion barred the SAC. 2. Prior Lawsuits Vivian’s SAC omits her lengthy history of battling the foreclosure on her condo due to delinquent association fees. The documents judicially noticed by the trial court show the following.

3 The court denied a motion to strike the SAC’s request for punitive damages as moot. That ruling is not at issue on appeal.

5 The 2008 Case Vivian filed her first lawsuit to prevent foreclosure in 2008. It alleged she purchased the condo from Robert Wilday in 2002, who already had delinquent association fees.

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Bluebook (online)
Vivian v. California Condominium Assn. CA2/8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vivian-v-california-condominium-assn-ca28-calctapp-2021.