Zakharia v. Krzemuski CA2/2

CourtCalifornia Court of Appeal
DecidedAugust 28, 2025
DocketB331231
StatusUnpublished

This text of Zakharia v. Krzemuski CA2/2 (Zakharia v. Krzemuski 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
Zakharia v. Krzemuski CA2/2, (Cal. Ct. App. 2025).

Opinion

Filed 8/28/25 Zakharia v. Krzemuski CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

GEORGE ZAKHARIA et al., B331231 Cross-complainants and (Los Angeles County Appellants, Super. Ct. No. v. BC597883) PAUL KRZEMUSKI, as Trustee, etc., Cross-complainant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Theresa M. Traber, Judge. Affirmed. Fernald & Zaffos, Brandon C. Fernald, Gina McCoy and Clay R. Wilkinson for Cross-complainants and Appellants. Law Offices of Robert Scott Shtofman, Robert S. Shtofman; Marcus, Watanabe & Enowitz and Daniel J. Enowitz for Cross- complainant and Respondent.

__________________________________________ George and Hoda Zakharia (the Zakharias)1 faced foreclosure after defaulting on two home loans secured by deeds of trust on their Los Angeles residence. In 1992, after moving abroad, the Zakharias entered into a contract with their neighbor, Violette Adamian (Adamian). Adamian loaned the Zakharias $35,000 with an option to purchase the property and assume the existing mortgages for forgiveness of the loan. The Zakharias did not repay the loan, and their representative executed and recorded a deed transferring ownership of the property to Adamian. Adamian made payments on the mortgages and property taxes until her death in 2013. Since 2015, both the Zakharias and Adamian’s son, Paul Krzemuski (Krzemuski), have been engaged in protracted litigation over ownership of the residence. Ultimately, the trial court granted Krzemuski’s renewed summary judgment motion. The judgment awarded Krzemuski title to the residence based on adverse possession. The Zakharias appeal, contending that the judgment was based on inadmissible evidence, and that triable issues of fact exist whether (1) Krzemuski proved title by adverse possession, and (2) the applicable statutes of limitations barred the Zakharias’ cross-complaint. We affirm the judgment. FACTUAL AND PROCEDURAL BACKGROUND I. The Zakharias’ Financial Problems In 1988, the Zakharias purchased a house located at 1817 Rial Road in Los Angeles, California (the Property) for $640,000. The Zakharias made a downpayment of $160,000 and took out a first mortgage from Glendale Federal Bank in the amount of

1 We use the Zakharias’ first names alone when necessary for clarity and simplicity.

2 $480,000. The Zakharias later took out a second mortgage from Transamerica Financial Services in the amount of $254,577.88. The Zakharias defaulted on the first mortgage in 1991, which had grown to $536,408.84 by March 1992. Around this time period, the second mortgage was in arrears, because George “had cash flow problems.” George testified in deposition that he did not make any money in the United States, and that his wife did not work. On February 24, 1992, a “Notice of Default” was recorded in the amount of $254,577.88 pursuant to the power of sale provision in the second deed of trust. On March 4, 1992, Glendale Federal Bank recorded a “Notice of Trustee’s sale Under Deed of Trust” and provided notice that the Property would be sold at a Trustee’s Sale on April 1, 1992. The Zakharias did not make any payments to rescind the default. II. The Transaction for the Property During this time period, Adamian told George’s father, Fouad Zakharia (Fouad), that she wanted to purchase the Property. Fouad informed the Zakharias. On March 24, 1992, Adamian’s husband, an attorney, sent a letter to Glendale Federal Bank requesting that it postpone the Trustee’s Sale so Adamian could explore purchasing the Property and assuming the mortgage payments. As a result, the Trustee’s Sale was postponed. By May 1992, the Zakharias were residing in France. On May 7, 1992, Adamian gave $35,000 to Fouad, who accepted the payment on the Zakharias’ behalf. On May 13, 1992, Hoda executed a general power of attorney at the United States Embassy in France. The power of attorney authorized George to “ ‘sell or hypothecate or transfer any real property’ ” on Hoda’s

3 behalf. George then traveled to Los Angeles and met with Adamian to sign documents related to the sale of the Property. On May 20, 1992, Adamian paid Transamerica Financial Services $88,013.52 to clear the Zakharias’ default. On May 21, 1992, George met with Adamian to sign documents on his own and Hoda’s behalf: (1) A notarized “Grant Deed” transferring the Property to Adamian as her separate property; (2) the sale contract, entitled, “Agreement to Loan Money and Option to Purchase Property” (Agreement);2 (3) a “ ‘Promissory Note Secured by Deed of Trust’ ’’; (4) an “Abstract of Option to Purchase” that was recorded, granting Adamian or her assignee the exclusive right to purchase the Property; and (5) a “Deed of Trust and Assignment of Rents.” Before leaving the United States, George executed a general and durable power of attorney on May 21, 1992, that was recorded. It authorized Fouad, who remained in Los Angeles, to act on the Zakharias’ behalf concerning the sale of the Property. The Zakharias have been living outside the United States since the summer of 1992. III. Adamian’s Mortgage and Property Tax Payments Between May 1992 and her death in 2013, Adamian made “numerous” payments for the mortgages and property taxes.

2 In the Agreement, the Zakharias acknowledged: (1) The loans secured by the first and second deeds of trust were in arrears; (2) “As further consideration” for Adamian’s $35,000 loan, the Zakharias “agree to sell to [Adamian] and grants [Adamian] the exclusive Option to purchase” the Property subject to the existing encumbrances; and (3) the purchase price of the Property would be “forgiveness” of the $35,000 loan or the sum of $35,000 less the unpaid balance of the loan.

4 Adamian also paid the Zakharias’ 1991 property tax arrearages. Conversely, the Zakharias were unable to demonstrate that they, Fouad, or anyone on their behalf, made any mortgage or property tax payments on the Property after May 1992. The Zakharias never investigated whether the mortgage was being paid. The Zakharias failed to repay the $35,000 loan. On May 21, 1993, Fouad, again acting under his general power of attorney, executed a “Deed In Lieu of Foreclosure” that was recorded. This document conveyed the Property to Adamian. IV. The Litigation Following Adamian’s death in 2013, Krzemuski became the successor trustee of the Violette Krzemuski, aka Violette Adamian 2013 Family Trust. On October 14, 2015, Krzemuski sued the Zakharias to quiet title. On November 16, 2015, the Zakharias filed a cross-complaint against Krzemuski for slander of title and to quiet title. In January 2017, the trial court denied Krzemuski’s motions for leave to file a first amended complaint and for summary judgment. The court granted the Zakharias’ motion to strike Krzemuski’s complaint. In April 2018, the trial court granted Krzemuski leave to file a “compulsory cross-complaint.”3 Krzemuski’s cross- complaint was for declaratory relief, to quiet title, and imposition and foreclosure of equitable lien against the Zakharias.4

3 The order granting Krzemuski’s motion for leave to file a compulsory cross-complaint is not contained in the record, but its existence is uncontested. 4 This case is unusual in that the operative pleadings consist of two cross-complaints. The record reflects Krzemuski and the Zakharias are improperly and consistently referred to as

5 On February 3, 2023, Krzemuski filed a renewed motion for summary judgment, or in the alternative, summary adjudication.

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