Judge Deirdre Hill, Case 18STCV00227 2023-05-18 Tentative Ruling

ALERT

Due to Coronavirus, please consider appearing by phone for Department M cases.

Department M strongly encourages the use of LA CourtConnect* for ALL hearings, without need for prior approval, unless live testimony by a witness is required.

The contact information for LA CourtConnect* is:

https://lacourt.portalscloud.com/VCourt/

*Parties with a fee waiver on file may be eligible to appear at no/reduced cost

The motion is GRANTED. The defaults against defendants are set aside and vacated. Plaintiff is ordered to file the supplemental complaint within five days. The clerk is to issue an amended or supplemental summons pursuant to CCP §412.10. Service of the supplemental summons and complaint shall be made in the manner provided for the initial service of a summons by this code.

On December 11, 2018, plaintiff Hank Hung-Quoc Mai filed a complaint against A.D.G. Investment Company, Francis T. Wallace and Sally A. Wallace, husband and wife as joint tenants and/or their respective estates for quiet title.

On March 23, 2023, a default was entered against Francis T. Wallace and Sally A. Wallace.

Plaintiff Hank Hung-Quoc Mai requests an order allowing plaintiff to file a supplemental complaint pursuant to CCP §368.5 and CCP §464 to substitute Wallsam LLC as plaintiff and facts that occurred after filing of the original complaint.

The complaint alleges that the real property that is the subject of the case is located at 13204 Crenshaw Blvd., Gardena. Complaint, ¶3. On August 8, 2006, plaintiff became indebted to defendants pursuant to a second trust deed in the amount of $336,000. Said defendants are no longer in business or are deceased and cannot therefore be located. Investigation, research, and title search have determined that defendants are no longer in business or are deceased. Thus, defendants’ lien should be released. Id., ¶8. Plaintiff is seeking to quiet title against the claims of defendants as follows: the claims of defendants are without any right whatsoever and such defendants have no right, title, estate, lien, or interest whatever in the above-described property or any part thereof. Id., ¶13.

CCP §368.5 states: “An action or proceeding does not abate by the transfer of an interest in the action or proceeding or by any other transfer of an interest. The action or proceeding may be continued in the name of the original party, or the court may allow the person to whom the transfer is made to be substituted in the action or proceeding.” “Where plaintiffs subsequent to instituting a quiet title action, convey their interest in the property in questions to other persons, the grantees may be substituted as plaintiffs or the action may be continued in the names of the original plaintiffs.” Zimberoff v. Bank of America Nat’l Trust & Sav. Asso. (1952) 112 Cal. App. 2d 555.

Under CCP §464, “(a) The plaintiff and defendant, respectively, may be allowed, on motion, to make a supplemental complaint or answer, alleging facts material to the case occurring after the former complaint or answer.

(c) Upon the filing of a supplemental complaint, the court clerk shall issue an amended or supplemental summons pursuant to Section 412.10. Service of the supplemental summons and complaint shall be made in the manner provided for the initial service of a summons by this code.”

“It is the general policy that courts should exercise liberality in permitting the filing of supplemental pleadings when the alleged ‘occurring-after’ facts are pertinent to the case.” Flood v. Simpson (1975) 45 Cal. App. 3d 644, 647. “Nonetheless, the motion to file a supplemental pleading is addressed to the sound legal discretion of the court. . . .” Id.

Plaintiff asserts that he duly assigned and transferred the real property that is the subject of the complaint for valuable consideration to Wallsam LLC, which occurred in February 2019 after filing the complaint.

Plaintiff Mai states in his declaration that the reasons for his delay in “bringing these facts to the attention” of the court is that at the time of transfer, he was represented by a different attorney and was not aware that transferring the property to Wallsam LLC meant that the quiet title claim was also transferred to Wallsam LLC “and that it would be appropriate for the name of the Plaintiff to be changed as well.” He states that he learned that “substituting the Plaintiff’s name would allow Wallsam LLC to obtain a judgment in its own name, which would be advantageous when dealing with title companies and lenders since it is now the owner of the property.”

Such procedure is allowed to substitute the name of plaintiff as the transfer of the property occurred after the complaint was filed.