Judge: Armen Tamzarian, Case: 21STCV19845, Date: 2023-12-08 Tentative Ruling

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Case Number: 21STCV19845    Hearing Date: April 8, 2024    Dept: 52

Defendants Kalousd Pandazos and Dalila Pandazos’s Motion for Summary Judgment or, in the Alternative, Summary Adjudication

Defendants/cross-complainants Kalousd Pandazos and Dalila Pandazos move for summary judgment or summary adjudication of plaintiffs Perry Lazar and Plone Trust’s first cause of action against the Pandazoses for quiet title and cancellation of instrument.  The Pandazoses further move for summary judgment or adjudication of their second amended cross-complaint’s first cause of action for quiet title and fourth cause of action for cancellation of instruments against Perry Lazar, Plone Trust, Bruce R. Cook, and William E. Devin, III.

Requests for Judicial Notice

Various parties request judicial notice of numerous documents.  All documents are subject to judicial notice for their existence and legal effects.  The court grants all requests for judicial notice.

The Pandazoses Do Not Present Grounds for Summary Judgment

As to summary judgment, the motion is not proper because it would not resolve any entire pleading or result in any judgment.  “A party may move for summary judgment in an action or proceeding if it is contended that the action has no merit or that there is no defense to the action or proceeding.”  (CCP § 437c(a)(1).)  In contrast, “[a] party may move for summary adjudication as to one or more causes of action within an action.”  (Id., subd. (f)(1).)  “Unlike a summary judgment, which terminates the entire action and results in an immediate, appealable judgment [citations], summary adjudication orders do not terminate the action but merely eliminate the need to prove or disprove at the subsequent trial the particular claim or defense that has been adjudicated.”  (6 Witkin, Cal. Procedure (6th ed. 2023) Proceedings Without Trial, § 313.)

The Pandazoses only move to adjudicate the causes of action specified above.  Granting this motion would not dispose of any entire pleading and would not result in any judgment.  This is only a motion for summary adjudication.    

Legal Standard

A defendant moving for summary judgment or adjudication must show “that one or more elements of the cause of action… cannot be established, or that there is a complete defense to the cause of action.”  (Code Civ. Proc., § 437c, subd. (p)(2).)  Once the defendant does so, the burden shifts to the plaintiff to show a triable issue of at least one material fact.  (Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th 826, 849.) 

A plaintiff moving for summary judgment or adjudication “must prove each element of the cause of action on which he seeks judgment.  Once the plaintiff meets this burden, the burden shifts to the defendant to show there is a triable issue of material fact as to that cause of action or a defense thereto.”  (Harris v. Rudin, Richman & Appel (2002) 95 Cal.App.4th 1332, 1337; Code Civ. Proc., § 437c, subd. (p)(1).)  The court must deny a plaintiff’s motion for summary adjudication if the defendant meets its “burden of showing the existence of a triable issue of material fact as to any available affirmative defense.”  (Oldcastle Precast, Inc. v. Lumbermens Mutual Casualty Co. (2009) 170 Cal.App.4th 554, 568.)

Summary of Facts

            The Pandazoses seek summary adjudication of causes of action regarding a dispute over two parcels of real property: assessor’s parcel numbers 5867-011-035 (parcel 35) and 5867-011-036 (parcel 36).  (Comp., ¶ 6.)  Parcel 36 is a strip of land along the north side of Ridgepine Drive.  (Ibid.)  Parcel 35 is two non-contiguous portions of land: 3.0 acres north of parcel 36 and 4.34 acres south of Ridgepine Drive.  (Ibid.)  The claims at issue in this motion arise from three grant deeds purporting to convey title to the parcels. 

First, a grant deed conveyed property from Bruce R. Cook and William E. Devin III to the Pandazoses, recorded on December 9, 2003, as instrument No. 03 3707014.  (Comp., ¶ 7, Ex. 3.)  This deed identifies the real property conveyed as “APN 5867-011-035” (id., Ex. 3-A), but the “legal description attached to the Deed as Exhibit A includes the metes and bounds of both parcel 35 and parcel 36.”  (M. RJN, Ex. I, Sandstrom Decl., ¶ 9, Ex. E.)

Second, a grant deed conveyed property from Cook and Devin to the Pandazoses, recorded on March 1, 2004, as instrument No. 04 0472488 (the correction deed).  (Comp., Ex. 4.)  The page titled “grant deed” is identical to the corresponding page of the prior deed, except for changes to the date, instrument number, and pagination, and the following text above the grantors’ signatures: “This grant deed is being re recorded to correct the legal description.”  (Ibid.)  This deed again identifies the real property conveyed as “APN: 5867-011-035” (id., Ex. 4-A), but the “legal description attached to the ‘correction deed’ … as Exhibit A includes the entire Parcel 35 and the northern portion of Parcel 36.”  (RJN, Ex. I, Sandstrom Decl., ¶ 10, Ex. F.)

Third, a grant deed conveyed property from Cook and Devin to plaintiff Perry Lazar, recorded on March 8, 2004, as instrument No. 04 0540309.  (Comp., Ex. 5.)  This deed identifies the real property conveyed as “APN: 5867-011-036” (id., Ex. 5-A), but while “the deed indicates it is a transfer of Parcel 36, the legal description as part of the deed … includes a metes and bounds of only the Southern portion of Parcel 36.”  (RJN Ex. I, Sandstrom Decl., ¶ 11.) 

The Correction Deed Is Invalid

            The Pandazoses contend the correction deed recorded on March 1, 2004, is invalid.  The Pandazoses meet their initial burden of proving that.  “An estate in real property … can be transferred only by operation of law, or by an instrument in writing, subscribed by the party disposing of the same, or by his agent thereunto authorized by writing.”  (Civ. Code, § 1091.)  “No estate or interest in real property … can be created, granted, assigned, surrendered, or declared, otherwise than by operation of law, or a conveyance or other instrument in writing, subscribed by the party creating, granting, assigning, surrendering, or declaring the same, or by the party’s lawful agent thereunto authorized by writing.”  (Code Civ. Proc., § 1971.)  Government Code section 27201(c)(1) provides, “Each instrument, paper, or notice that is rerecorded shall be executed and acknowledged or verified as a new document, in addition to any previous execution and acknowledgment or verification, unless” an exception applies.  “If a document is rerecorded, it shall comply with subdivision (c) of Section 27201.”  (Gov. Code, § 27288.1(d).) 

The undisputed facts show the correction deed was rerecorded—but grantors Cook and Devin never signed it.  The document itself shows it only bears signatures by grantors Cook and Devin on the page titled “grant deed,” both dated “November 26, 2003.”  (Comp., Ex. 4, p. 4.)  That is the same date as on the first deed.  (Id., Ex. 3, p. 2.)  The correction deed was not executed and acknowledged or verified as a new document, in addition to any previous execution and acknowledgment or verification.  The signatures dated November 26, 2003, are not an execution and acknowledgement or verification of the deed “as a new document, in addition to [the] previous execution and acknowledgment” as required under Government Code section 27201(c)(1).  Those signatures are the same execution and acknowledgment or verification as the first deed. 

            The Pandazoses also present supporting testimony by Cook.  At his deposition, Cook testified he believed the notary public, Gail P. Zimerman “lied when she said that [he] appeared before her on February 23rd of 2004.”  (M. Sep. Statement, Ex. 1, Cook Depo., 195:8-16.)  He explained, “I think this is not a truthful document” because “I don’t appear to have signed it.”  (Id., 197:3-5.)  Cook further testified, “I've never seen a paper like this before that didn’t have the signature of the person who was supposed to be involved.”  (Id., 197:16-18.) 

The record shows Cook and Devin never signed the correction deed.  It was not “subscribed by the” grantors as required under Civil Code section 1901 and Code of Civil Procedure section 1971.  The correction deed therefore did not constitute a valid conveyance of real property. 

Legal Effects of the First and Third Deeds

            The Pandazoses meet their initial burden of proving they own the entirety of parcels 35 and 36.  As discussed above, the correction deed is invalid.  Who owns the property therefore depends on the legal effects of the first and third deeds. 

The first deed’s legal description identifies the real property conveyed as “APN 5867-011-035” (Comp., Ex. 3-A), but the “legal description attached to the Deed as Exhibit A includes the metes and bounds of both parcel 35 and parcel 36.”  (M. RJN, Ex. I, Sandstrom Decl., ¶ 9, Ex. E.)

The legal description by metes and bounds takes precedence over the APN.  “An assessor’s parcel number, also referred to as an ‘ “APN” ... is a numerical identifier associated with a particular piece of property for property tax assessment purposes.’ ”  (MTC Financial Inc. v. California Dept. of Tax & Fee Administration (2019) 41 Cal.App.5th 742, 745, fn. 4 (MTC).)  “Generally, such a number corresponds to an assessor’s map [citation], which is a type of map that does not have to necessarily correspond with the actual physical location of a property.”  (Id. at pp. 749-750.)  

Revenue and Taxation Code section 11911.1 provides that an assessor’s parcel “number will be used only for administrative and procedural purposes and will not be proof of title and in the event of any conflicts, the stated legal description noted upon the document shall govern.”  The Court of Appeal has applied this statute to hold that a description by metes and bounds controlled over a reference to APN:

In determining whether the property description in the [deed’s] legal description is reasonably susceptible to the inclusion of acreage beyond the metes and bounds description, Revenue and Taxation Code sections 327 and 11911.1, read together, preclude basing any such interpretation on the mere presence of the APN notations.  If a deed is recorded in a county with an APN-notation requirement, and the deed bears APN notations referring to an unrecorded assessor’s map, those APN notations may not be treated as part of the deed’s legal description of the parcel conveyed unless the face of the deed clearly indicates such an intention.  [Fn.]  While an APN reference might be considered in resolving an ambiguity that otherwise appears in a deed, the inclusion of the APN reference does not itself create an ambiguity.  Otherwise, potentially every deed recorded in a county with an APN-notation requirement would be rendered ambiguous.            

(XPO Logistics Freight, Inc. v. Hayward Property, LLC (2022) 79 Cal.App.5th 1166, 1177 (XPO).)  In XPO, the court held that the metes and bounds description prevailed over the APN stated on the same page.

            The present case has analogous facts.  By the first deed recorded on December 9, 2003, Cook and Devin transferred to the Pandazoses all property included in the legal description by metes and bounds: both parcels 35 and 36.  The legal description prevails over any conflicting APN.

The third deed did not constitute a valid conveyance of any property to Lazar.  It identifies the real property conveyed as “APN: 5867-011-036” (Comp., Ex. 5-A), but “[a]lthough the deed indicates it is a transfer of Parcel 36, the legal description as part of the deed … includes a metes and bounds of only the Southern portion of Parcel 36.”  (RJN Ex. I, Sandstrom Decl., ¶ 11.)  Cook and Devin already transferred that property to the Pandazoses by the first deed.  They could not transfer it again. 

Lazar and Plone Trust Show No Dispute of Material Fact

            The opposition by Lazar and Plone Trust does not establish any triable issue of fact material to the legal effects of the three grant deeds.  In their opposing separate statement, they state they dispute fact Nos. 2, 3, and 7.

Fact No. 2 states the Pandazoses entered escrow to purchase property from Cook and Devin with a specified legal description.  Plaintiffs attempt to dispute this fact on the basis that, “The legal [description] for parcel 35 is not as stated.”  That is not a dispute of fact.  Rather, it restates one of this motion’s premises: that the first deed recorded in November 2003 includes a legal description that does not match parcel 35. 

Fact No. 3 states that Cook and Devin conveyed title to property as described in the first grant deed recorded on December 9, 2003.  Plaintiffs attempt to dispute this fact “[t]o the extent that Cook and Devin conveyed Parcel 36.”  That is not a dispute of fact.  That is a dispute about the deed’s legal effect.  The evidence plaintiffs cite for this purported dispute does not support their position regarding the deed’s legal effect.

Fact No. 7 states the correction deed “is a forged deed.”  Plaintiffs’ separate statement states, “Unknown if the deed is ‘forged.’  However, it is undisputed as to the credibility of the correction deed and its content.”  Any dispute over whether the deed is “forged” does not preclude summary adjudication.  Defendants may not have established the deed is “forged,” per se.  But they have established that it is invalid.    

The additional facts asserted in the opposing separate statement also do not establish a triable issue of material fact.  Additional fact No. 1 asserts, “Neither Pandazos nor Lazar every [sic] received notice of the The [sic] ‘Correction Grant Deed’ recorded with County Recorder’s Office of the County of Los Angeles, State of California on March 1, 2004, with [sic].” 

That the Pandazoses never received notice of the correction deed does not establish a triable issue of material fact.  This evidence supports the Pandazoses, not plaintiffs.  “If a correction instrument ‘purports to diminish the original grantee’s rights in some ways’ it ‘should not be accepted, unless the original grantee first reconveyed to the grantor or, at least, evidence in the record reveals her consent.’ ”  (XPO, supra, 79 Cal.App.5th at p. 1180.)  The correction deed purports to diminish the Pandazoses’ rights.  If the Pandazoses never received notice of it, they could not have consented to it.  Moreover, if the Pandazoses never received notice of it, that also means it was never delivered.  “ ‘[A]n undelivered deed’ ” is “ ‘wholly void.’ ”  (OC Interior Services, LLC v. Nationstar Mortgage, LLC (2017) 7 Cal.App.5th 1318, 1332.)  The court, however, declines to reach these issues because the Pandazoses did not make any arguments regarding them.

Additional fact Nos. 2-3 assert Lazar has maintained parcel 36 and paid the property taxes for the parcel “consisting of 7.34 acres” since 2004.  No. 4 asserts the Pandazoses have paid taxes on Parcel 35 “consisting of 2.19 acres” since 2003.  Plaintiffs provide no authority supporting the proposition that their alleged payment of property taxes is relevant to the validity of the grant deeds and their claim of ownership of the disputed property.    

            Finally, additional fact Nos. 5 and 6 concern how much Lazar and the Pandazoses, respectively, paid Cook and Devin in each purchase agreement.  Again, plaintiffs present no authority that the payments constitute a basis for modifying the legal effect of these real property instruments.

Reformation

            Plaintiffs’ opposition refers to the doctrine of reformation.  (Opp., p. 5.)  “When, through fraud or a mutual mistake of the parties, or a mistake of one party, which the other at the time knew or suspected, a written contract does not truly express the intention of the parties, it may be revised on the application of a party aggrieved, so as to express that intention, so far as it can be done without prejudice to rights acquired by third persons, in good faith and for value.”  (Civ. Code, § 3399.)  The opposition cites authority about reformation but does not make any specific argument or cite any evidence.  Assuming plaintiffs presented evidence that the first grant deed to the Pandazoses did not express the intention of the grantors, plaintiffs present no evidence of either (a) fraud, (b) mutual mistake in that the Pandazoses intended only to purchase parcel 35, or (c) that the Pandazoses knew or suspected Cook and Devin made a mistake in the deed’s legal description.          

Plaintiffs’ 1st Cause of Action Against the Pandazoses

            The Pandazoses establish they are entitled to summary adjudication of plaintiffs’ first cause of action for quiet title and cancellation of instrument.  Plaintiffs’ first cause of action is labeled “quiet title and cancellation of instrument.”  For the reasons discussed above, only the first of the three grant deeds constituted a valid conveyance of real property.  It conveyed parcels 35 and 36 to the Pandazoses.  The third deed did not convey any property to Lazar because Cook and Devin had nothing left to convey.  The Pandazoses are therefore entitled to summary adjudication of this cause of action.

The Pandazoses’ 1st Cause of Action for Quiet Title Against Lazar and Plone Trust

            The Pandazoses are entitled to summary adjudication of this cause of action against Lazar and Plone Trust for the same reasons as plaintiffs’ cause of action for quiet title against the Pandazoses.  Cook and Devin did not cause a valid transfer of the subject property to Lazar or Plone Trust.

The Pandazoses’ 1st Cause of Action for Quiet Title Against Cook and Devin

            The Pandazoses do not meet their initial burden on summary adjudication of this cause of action as against Cook and Devin.  “An element of a cause of action for quiet title is ‘[t]he adverse claims to the title of the plaintiff against which a determination is sought.’ ”  (West v. JPMorgan Chase Bank, N.A. (2013) 214 Cal.App.4th 780, 802.) 

The motion fails to establish this cause of action because it does not present evidence Cook and Devin claim any adverse interest in the Pandazoses’ property.  The Pandazoses’ second amended cross-complaint alleges Cook and Devins “may have a claim of interest adverse to Cross-Complainants’ title in the Property.”  (SACC, ¶ 30, italics added.)  The basis of this motion is that the correction deed is invalid.  The Pandazoses are right about that, but that does not mean Cook and Devin claim any interest in either parcel 35 or 36.  Whether or not the correction deed is valid, the record shows Cook and Devin conveyed the entirety of both parcels to someone else.  The evidence presented concerns only the dispute over which real property is owned by the Pandazoses and which is owned by Lazar and Plone Trust.  Nothing in the record shows Cook and Devin claim title to any portion of the subject property.

The Pandazoses’ 4th Cause of Action for Cancellation of Instruments Against Lazar and Plone Trust

The Pandazoses are entitled to summary adjudication of this cause of action against Lazar and Plone Trust.  “A written instrument, in respect to which there is a reasonable apprehension that if left outstanding it may cause serious injury to a person against whom it is void or voidable, may, upon his application, be so adjudged, and ordered to be delivered up or canceled.”  (Civ. Code, § 3412.)  Cancellation requires: “(1) the instrument is void or voidable due to, for example, fraud; and (2) there is a reasonable apprehension of serious injury including pecuniary loss or the prejudicial alteration of one’s position.”  (U.S. Bank National Assn. v. Naifeh (2016) 1 Cal.App.5th 767, 778.)

The “correction” grant deed recorded on March 1, 2024, as instrument No. 04 0472488 (Comp., Ex. 4) is void or voidable because the grantors, Cook and Devin, did not execute it.  The instrument would prejudicially alter the Pandazoses’ rights in the subject real property.  They are therefore entitled to cancellation of the instrument under Civil Code section 3412.

The Pandazoses’ 4th Cause of Action for Cancellation of Instruments Against Cook and Devin

The Pandazoses are also entitled to summary adjudication of this cause of action against Cook and Devin.  In an action for quiet title, the judgment does not necessarily bind every person who had or may have some claim to the property.  (Code Civ. Proc., § 764.030 [“The judgment in the action is binding and conclusive on” certain persons]; § 764.045 [“the judgment does not affect a claim in the property or part thereof of any person who was not a party to the action” if certain conditions are satisfied]; § 764.070 [“the judgment in the action is not binding or conclusive on” the state or the United States unless they are parties to the action].)  In contrast, cancellation is all or nothing.  Cancellation results in a written instrument being “ordered to be delivered up or canceled.”  (Civ. Code, § 3412.)  It is not merely cancelled as between certain parties.  As the grantors named in the deed, Cook and Devin are proper parties to this cause of action for cancellation.    

The court exercises its discretion not to consider the untimely opposition by Cook and Devin.  “An opposition to the motion” for summary judgment or adjudication “shall be served and filed not less than 14 days preceding the noticed or continued date of hearing.”  (Code Civ. Proc., § 437c(b)(2).)  March 25 was 14 days before this hearing on April 8.  Cook and Devin filed their opposition on April 2, only six days before this hearing.

Disposition

The court hereby grants summary adjudication in favor of Kalousd Pandazos and Dalila Pandazos on the first cause of action alleged in the complaint by plaintiffs Perry Lazar and Plone Trust. 

The court hereby grants summary adjudication in favor of Kalousd Pandazos and Dalila Pandazoses on their second amended cross-complaint’s first cause of action for quiet title against Perry Lazar and Plone Trust.  The court hereby denies summary adjudication of the Pandazoses’ first cause of action for quiet title as against Bruce R. Cook and William E. Devin.  The court hereby grants summary adjudication in favor of Kalousd Pandazos and Dalila Pandazoses on their second amended cross-complaint’s fourth cause of action for cancellation of instruments against Perry Lazar, Plone Trust, Bruce R. Cook, and William E. Devin.