Judge: James C. Chalfant, Case: 23STCV24593, Date: 2024-01-04 Tentative Ruling
Case Number: 23STCV24593 Hearing Date: January 23, 2024 Dept: 85
Kevin Coronado v. Marvin
Rodriguez and Yireh Holdings, 23STCV24593
Tentative decision on the application
for a right to attach order: granted after supplementary analysis
Plaintiff
Kevin Coronado (“Coronado”) applies for a right to attach order against Defendant
Yireh Holdings (“Yireh”) for $180,435.
The
court has read and considered the moving papers (no opposition was filed)[1] and
renders the following tentative decision.
A. Statement of the Case
1.
Complaint
Plaintiff Coronado commenced this
action against Defendants Yireh and Marvin Rodriguez (“Rodriguez”) on October
10, 2023, alleging (1) breach of note, (2) money lent, (3) two counts of
account stated, (4) two counts of open book account, (5) two counts of unjust
enrichment, (6) fraud, (7) breach of oral agreement, (8) money had and
received, (9) conversion, and (10) violations of Business and Professions Code
section 17200. The unverified Complaint
alleges in pertinent part as follows.
Rodriguez is Yireh’s owner, President,
Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), Secretary,
and sole director. He would often commingle
its funds and divert them for his personal use.
On December 1, 2021, Coronado loaned
Rodriguez and Yireh $180,000. The note
for this loan (“December 2021 Note”) required the borrower to make monthly
payments of $1,800. The December 2021 Note
was due and payable upon completion of a construction project (“Project”) on two
parcels of property at 4970 Gambier Street (“Gambier Property”) and 3100 Pueblo
Avenue, Los Angeles, CA 90032 (“Pueblo Property”) (collectively, “Project Properties”). Coronado was also entitled to recover
reasonable attorney’s fees incurred in enforcing the December 2021 Note.
In May 2023, Defendants sold one of
the Project Properties. Coronado would
not have signed the December 2021 Note if he had known Defendants would sell
the Project Properties without finishing the Project or paying off the December
2021 Note. Defendants defaulted for
failure to make the required monthly payments and pay off the December 2021 Note
after they abandoned the Project. As of
October 2, 2023, Defendants owe the $180,000 principal, $33,000 in interest,
and $3,300 in unpaid late fees.
Rodriguez also agreed to sell
Coronado 60 unlocked mobile phones for $37,200.
Coronado paid the $37,200, but Rodriguez has not delivered the unlocked
phones.
As to both Defendants, Coronado
seeks (1) initial damages of $216,300, an additional $49.3150 per day from
October 2, 2023, and attorneys’ fees and costs incurred in enforcing the December
2021 Note in this action; (2) $180,000 plus 10% annual interest from December
1, 2021; (3) punitive and exemplary damages; (4) restitution and disgorgement
of all monies Coronado paid; and (5) a permanent injunction enjoining
Defendants from engaging in unlawful business practices. As to Rodriguez, Coronado also seeks $37,200,
10% annual interest thereon from August 15, 2023, and punitive and exemplary
damages. Coronado also seeks recovery of
costs of suit.
2.
Course of Proceedings
On November 7, 2023, Coronado
personally served Yireh and Rodriguez with the Complaint, Summons, and moving
papers.
B.
Applicable Law
Attachment
is a prejudgment remedy providing for the seizure of one or more of the
defendant’s assets to aid in the collection of a money demand pending the
outcome of the trial of the action. See
Whitehouse v. Six Corporation, (1995) 40 Cal.App.4th 527, 533. In 1972, and in a 1977 comprehensive
revision, the Legislature enacted attachment legislation (CCP §481.010 et
seq.) that meets the due process requirements set forth in Randone v.
Appellate Department, (1971) 5 Cal.3d 536.
See Western Steel & Ship Repair v. RMI, (12986) 176
Cal.App.3d 1108, 1115. As the attachment
statutes are purely the creation of the Legislature, they are strictly
construed. Vershbow v. Reiner,
(1991) 231 Cal.App.3d 879, 882.
A
writ of attachment may be issued only in an action on a claim or claims for
money, each of which is based upon a contract, express or implied, where the
total amount of the claim or claims is a fixed or readily ascertainable amount
not less than five hundred dollars ($500).
CCP §483.010(a). A claim is
“readily ascertainable” where the amount due may be clearly ascertained from
the contract and calculated by evidence; the fact that damages are unliquidated
is not determinative. CIT
Group/Equipment Financing, Inc. v. Super DVD, Inc., (2004) 115 Cal.App.4th
537, 540-41 (attachment appropriate for claim based on rent calculation for
lease of commercial equipment).
All
property within California of a corporation, association, or partnership is
subject to attachment if there is a method of levy for the property. CCP §487.010(a), (b). While a trustee is a natural person, a trust
is not. Therefore, a trust’s property is
subject to attachment on the same basis as a corporation or partnership. Kadison, Pfaelzer, Woodard, Quinn &
Rossi v. Wilson, supra, 197 Cal.App.3d at 4.
The
plaintiff may apply for a right to attach order by noticing a hearing for the
order and serving the defendant with summons and complaint, notice of the
application, and supporting papers any time after filing the complaint. CCP §484.010.
Notice of the application must be given pursuant to CCP section 1005,
sixteen court days before the hearing. See
ibid.
The
notice of the application and the application may be made on Judicial Council
forms (Optional Forms AT-105, 115). The
application must be supported by an affidavit showing that the plaintiff on the
facts presented would be entitled to a judgment on the claim upon which the
attachment is based. CCP §484.030.
Where the defendant is a corporation, a
general reference to “all corporate property which is subject to attachment
pursuant to subdivision (a) of Code of Civil Procedure Section 487.010” is
sufficient. CCP §484.020(e). Where the defendant is a partnership or other
unincorporated association, a reference to “all property of the partnership or
other unincorporated association which is subject to attachment pursuant to
subdivision (b) of Code of Civil Procedure Section 487.010” is sufficient. CCP §484.020(e). A specific description of property is not
required for corporations and partnerships as they generally have no exempt
property. Bank of America v. Salinas
Nissan, Inc., (“Bank of America”) (1989) 207 Cal.App.3d 260, 268.
A
defendant who opposes issuance of the order must file and serve a notice of
opposition and supporting affidavit as required by CCP section 484.060 not
later than five court days prior to the date set for hearing. CCP §484.050(e). The notice of opposition may be made on a
Judicial Council form (Optional Form AT-155).
The
plaintiff may file and serve a reply two court days prior to the date set for
the hearing. CCP §484.060(c).
At
the hearing, the court determines whether the plaintiff should receive a right
to attach order and whether any property which the plaintiff seeks to attach is
exempt from attachment. The defendant
may appear the hearing. CCP
§484.050(h). The court generally will
evaluate the attachment application based solely on the pleadings and
supporting affidavits without taking additional evidence. Bank of America, supra, 207
Cal.App.3d at 273. A verified complaint may be used in lieu of or in addition
to an affidavit if it states evidentiary facts.
CCP §482.040. The plaintiff has
the burden of proof, and the court is not required to accept as true any
affidavit even if it is undisputed. See
Bank of America, supra, at 271, 273.
The
court may issue a right to attach order (Optional Form AT-120) if the plaintiff
shows all of the following: (1) the claim on which the attachment is based is
one on which an attachment may be issued (CCP §484.090(a)(1)); (2) the
plaintiff has established the probable validity of the claim (CCP
§484.090(a)(2)); (3) attachment is sought for no purpose other than the
recovery on the subject claim (CCP §484.090(a)(3); and (4) the amount to be
secured by the attachment is greater than zero (CCP §484.090(a)(4)).
A
claim has “probable validity” where it is more likely than not that the
plaintiff will recover on that claim.
CCP §481.190. In determining this
issue, the court must consider the relative merits of the positions of the
respective parties. Kemp Bros.
Construction, Inc. v. Titan Electric Corp., (2007) 146 Cal.App.4th 1474,
1484. The court does not determine
whether the claim is actually valid; that determination will be made at trial
and is not affected by the decision on the application for the order. CCP §484.050(b).
Except
in unlawful detainer actions, the amount to be secured by the attachment is the
sum of (1) the amount of the defendant’s indebtedness claimed by the plaintiff,
and (2) any additional amount included by the court for estimate of costs and
any allowable attorneys’ fees under CCP section 482.110. CCP §483.015(a); Goldstein v. Barak
Construction, (2008) 164 Cal.App.4th 845, 852. This amount must be reduced by the sum of (1)
the amount of indebtedness that the defendant has in a money judgment against
plaintiff, (2) the amount claimed in a cross-complaint or affirmative defense
and shown would be subject to attachment against the plaintiff, and (3) the
value of any security interest held by the plaintiff in the defendant’s
property, together with the amount by which the acts of the plaintiff (or a
prior holder of the security interest) have decreased that security interest’s
value. CCP §483.015(b); see also
CCP §483.010(b) (“an attachment may not be issued on a claim which is secured
by any interest in real property arising from agreement, statute, or other rule
of law…However, an attachment may be issued where the claim was originally so
secured but, without any act of the plaintiff or the person to whom the
security was given, the security has become valueless or has decreased in value
to less than the amount then owing on the claim). A defendant claiming that the amount to be
secured should be reduced because of a cross-claim or affirmative defense must
make a prima facie showing that the claim would result in an attachment
against the plaintiff.
Before
the issuance of a writ of attachment, the plaintiff is required to file an
undertaking to pay the defendant any amount the defendant may recover for any
wrongful attachment by the plaintiff in the action. CCP §489.210.
The undertaking ordinarily is $10,000. CCP §489.220. If the defendant objects, the court may
increase the amount of undertaking to the amount determined as the probable
recovery for wrongful attachment. CCP
§489.220. The court also has inherent
authority to increase the amount of the undertaking sua sponte. North Hollywood Marble Co. v. Superior
Court, (1984) 157 Cal.App.3d 683, 691.
C. Statement of Facts
1. Background
Yireh’s sole business is to hold
properties for resale. Coronado Decl.,
¶9. Yireh’s Statement of Information
lists Rodriguez as its CEO, CFO, Secretary, sole director, and agent for
service of process. Coronado Decl., ¶2,
Ex. 1. He is also its owner and President. Coronado Decl., ¶2.
Aside from the Pueblo Property,
Yireh currently holds two parcels of property in Barstow, one in Victorville,
and one in Pico Rivera. Coronado Decl.,
¶9, Exs. 6-8, 10-11. It also owned
property at 3265 Story St., Los Angeles, CA 90063 until Rodriguez sold it in
October 2023. Coronado Decl., ¶10, Ex.
9.
2. Pre-Project Loans
Coronado first loaned Rodriguez
$30,000 in 2019. Coronado Decl.,
¶3. He requested the loan be handled
through escrow and secured by the property Rodriguez wanted to purchase with the
money. Coronado Decl., ¶3. He later learned Rodriguez never recorded a
deed of trust for the property, and Coronado insisted that he do so. Coronado Decl., ¶3. Rodriguez was angry about the request but
eventually complied. Coronado Decl., ¶3. He repaid the loan two months later when he
sold the property. Coronado Decl.,
¶3.
In 2020, Rodriguez requested
Coronado to loan $50,000 so Yireh could purchase property at 3810 Locke Avenue
(“Locke Property”) for investment purposes.
Coronado Decl., ¶4. Rodriguez
told Coronado this loan would be secured by a deed of trust on the Locke
Property. Coronado Decl., ¶4. Rodriguez showed Coronado a deed of trust executed
for the Locke Property, with Coronado named as beneficiary. Coronado Decl., ¶4, Ex. 2. Rodriguez said an escrow would be opened with
Penn Escrow to record the deed of trust to secure the loan. Coronado Decl., ¶4.
Based on Rodriguez’s
representations, on January 17, 2020, Coronado loaned the money and Rodriguez executed
a note for $50,000 (“2020 Note”).
Coronado Decl., ¶4, Ex. 2. Rodriguez
agreed to repay only $500 in interest monthly from February 17, 2020 through
January 17, 2021, at which point the loan would mature and the balance of principal
and unpaid interest would become due.
Coronado Decl., ¶4, Ex. 2.
Rodriguez never opened an escrow or recorded
the deed of trust for the Locke Property.
Coronado Decl., ¶4. Defendants
sold the Locke Property in 2021 without repaying the 2020 Note. Coronado Decl., ¶4.
In April 2021, Rodriguez requested
another loan from Coronado to purchase 3657 Philadelphia Street, Chino, CA
91710 (“Philadelphia Property”). Coronado
Decl., ¶5. Defendants promised Coronado
a deed of trust on the Philadelphia Property to secure this loan. Coronado Decl., ¶5, Ex. 3. The parties agreed to combine this new loan
with the $50,000 principal and $5,000 interest Rodriguez owed under the 2020
Note, for a total loan of $125,000. Coronado
Decl., ¶5. Defendants also led Coronado
to believe Penn Escrow would handle the escrow.
Coronado Decl., ¶5.
On March 31, 2021, Coronado funded
this $125,000 loan. Coronado Decl.,
¶5. He did not receive a copy of the
note for this loan (“Spring 2021 Note”) until April 25, 2021. Coronado Decl., ¶5, Ex. 3. The deed of trust transferring Rodriguez’s interest
in the Philadelphia Property to Coronado is also dated April 25, 2021. Coronado Decl., ¶5, Ex. 3. Coronado did not receive the signature page for
the Spring 2021 Note until May 6, 2021. Coronado Decl., ¶5.
Penn Escrow did not handle the
transaction. Coronado Decl., ¶5. Coronado later learned the deed of trust for
the Philadelphia Property was never recorded.
Coronado Decl., ¶5. Defendants
sold the Philadelphia Property in October 2021 without Coronado’s knowledge or repayment
of the Spring 2021 Note. Coronado Decl.,
¶5.
3. December 2021 Note
In late 2021, Rodriguez asked
Coronado for a loan to purchase the two Project Properties. Coronado Decl., ¶6. Rodriguez told Coronado he would develop the
lots, sell them, and use the profits to repay the loan upon completion of the
Project. Coronado Decl., ¶6. Rodriguez asked Coronado to roll the $125,000
owed under the Spring 2021 Note into the new loan. Coronado Decl., ¶6. Coronado would lend additional amounts so that
the principal of the new loan totaled $180,000.
Coronado Decl., ¶6.
Coronado agreed to make this loan. Coronado Decl., ¶6. The $180,000 principal of the loan included
the $125,000 under the Spring 2021 Note and $55,000 delivered to Rodriguez on
November 14, 2021. Coronado Decl.,
¶6.
Coronado did not receive the signed
December 2021 Note until December 21, 2021.
Coronado Decl., ¶6, Ex. 4. The
signature page identified Yireh as the borrower. Coronado Decl., ¶6, Ex. 4. Rodriguez had not told Coronado beforehand that
Yireh would be the borrower under this loan.
Coronado Decl., ¶6.
Yireh promised to repay the $180,000
principal with interest at a 12% annual rate.
Coronado Decl., ¶6, Ex. 4. The December
2021 Note required monthly payments of $1,800.
Coronado Decl., ¶6, Ex. 4. The
balance of payments were due at the end of the Project, based on the greater of
20% of profits to be paid upon sale of the Project Properties and 12% of
monthly interest. Coronado Decl., ¶6,
Ex. 4.
If Yireh defaulted on the loan,
Coronado could send written notice of intent to accelerate the outstanding
principal and interest thereon if Yireh did not repay overdue amounts by a
certain date. Coronado Decl., ¶6, Ex.
4. The repayment deadline must be at
least 30 days after mailing or delivery of such notice. Coronado Decl., ¶6, Ex. 4. If Coronado exercised the option to accelerate
the amount owed, he may also recover reasonable attorney’s fees and costs
incurred in enforcing the December 2021 Note.
Coronado Decl., ¶6, Ex. 4.
The December 2021 Note provided for a
separate mortgage, deed of trust, or security deed (“Deed of Trust”) to protect
Coronado against any loss stemming from Yireh’s breach. Coronado Decl., ¶6, Ex. 4. This security instrument would list the
conditions under which Yireh would need to immediately repay all amounts
owed. Coronado Decl., ¶6, Ex. 4. These conditions included sale of any part of
or interest in the Project Properties without Coronado’s consent. Coronado Decl., ¶6, Ex. 4.
If Coronado exercised this option, he
was required to provide Yireh written notice of the loan acceleration. Coronado Decl., ¶6, Ex. 4. The notice would give Yireh at least 30 days
after such notice to pay all amounts secured under the Deed of Trust. Coronado Decl., ¶6, Ex. 4. If Yireh failed to comply, Coronado could
exercise his right to accelerate the amount owed without further notice. Coronado Decl., ¶6, Ex. 4.
4. Breach
In May 2023, Rodriguez and Yireh
sold the Gambier Property for $225,000.
Coronado Decl., ¶7, Ex. 5. Defendants
had not completed any construction on either of the Project Properties. Coronado Decl., ¶7. Yireh has also listed the Pueblo Property for
sale. Coronado Decl., ¶¶ 8, 13, Ex. 13.[2]
To
date, Coronado has not received any of the payments required under the December
2021 Note. Coronado Decl., ¶¶ 7-8. Coronado would not have loaned Defendants
$180,000 thereunder if he had known they would not undertake the Project and
would sell the Project Properties without paying off the loan. Coronado Decl., ¶8.
D. Analysis
Plaintiff
Coronado applies for a right to attach order against Defendant Yireh in the
amount of $180,435, which includes $435 in costs.
1.
A Claim Based on a Contract and on Which Attachment May Be Based
A
writ of attachment may be issued only in an action on a claim or claims for
money, each of which is based upon a contract, express or implied, where the
total amount of the claim or claims is a fixed or readily ascertainable amount
not less than five hundred dollars ($500). CCP §483.010(a).
Coronado’s
application is based on the December 2021 Note, whose principal is $180,000. Coronado Decl., ¶6, Ex. 4. Attachment may be based on this contract
claim.
2.
An Amount Due That is Fixed and Readily Ascertainable
A
claim is “readily ascertainable” where the damages may be readily ascertained
by reference to the contract and the basis of the calculation appears to be
reasonable and definite. CIT Group/Equipment Financing, Inc. v. Super
DVD, Inc., (2004) 115 Cal.App.4th 537, 540-41. The fact that the
damages are unliquidated is not determinative. Id. But the
contract must furnish a standard by which the amount may be ascertained and
there must be a basis by which the damages can be determined by proof. Id.
(citations omitted).
Under
the December 2021 Note, Yireh promised to pay $180,000 plus interest at a 12%
annual rate. Coronado Decl., ¶6, Ex.
4. Coronado seeks attachment based on
the unpaid $180,000 principal without interest. Coronado Decl., ¶6, Ex. 4. These damages are ascertainable.
Under
the December 2021 Note, if Coronado exercised his right to accelerate the
amount owed after Yireh defaulted on the Loan, he could recover reasonable
attorney’s fees and costs he incurs through enforcement. Coronado Decl., ¶6, Ex. 4. A plaintiff’s application for a right to
attach order may include an estimate of the costs and allowable attorney’s
fees. CCP §482.110(a).
Coronado
seeks attachment of $435 in costs related to filing this action. Mem. at 6.
Coronado does not provide an attorney declaration to support his estimate of
costs. However, this Complaint was subject to statutory fees. The uniform fee for filing the
first paper in an unlimited civil action is $355. Government Code (“Govt. Code”) §70611. Two $40 supplemental fees shall be collected
for any first paper subject to this fee.
Govt. Code §§ 70602.5, 70602.6(a)-(b).
The $435 in costs are ascertainable.
c.
Conclusion
$180,435
in damages are ascertainable.
3.
Probability of Success
A
claim has “probable validity” where it is more likely than not that the
plaintiff will recover on that claim. CCP §481.190. In determining
this issue, the court must consider the relative merits of the positions of the
respective parties. Kemp Bros. Construction, Inc. v. Titan Electric
Corp., (2007) 146 Cal.App.4th 1474, 1484. The court does not
determine whether the claim is actually valid; that determination will be made
at trial and is not affected by the decision on the application for the
order. CCP §484.050(b).
a.
Merits of Yireh’s Breach
In
late 2021, Rodriguez asked Coronado for a loan to purchase the Project Properties. Coronado Decl., ¶6. The $180,000 principal of the December 2021
Note reflected a $55,000 loan for this purchase plus $125,000 Defendants owed
under the Spring 2021 Note. Coronado
Decl., ¶¶ 5-6, Exs. 3-4.
Payment
under the December 2021 Note was due upon completion of the Project. Coronado Decl., ¶6, Ex. 4. If Yireh defaulted on the loan, Coronado
could send written notice of intent to accelerate the outstanding principal and
interest thereon if Yireh did not repay overdue amounts by a certain date. Coronado Decl., ¶6, Ex. 4. The acceleration date must be at least 30
days after mailing or delivery of such notice.
Coronado Decl., ¶6, Ex. 4.
The
December 2021 Note also required Yireh to provide a Deed of Trust which would list
the conditions under which Yireh may need to repay all amounts owed. Coronado Decl., ¶6, Ex. 4. This included sale of any part of or interest
in the Project Properties without Coronado’s consent. Coronado Decl., ¶6, Ex. 4. If Coronado exercised the right to accelerate
amounts owed, he was required to provide Yireh with written notice. Coronado Decl., ¶6, Ex. 4. This notice must give Yireh 30 days to pay
all amounts secured by the Deed of Trust.
Coronado Decl., ¶6, Ex. 4.
Coronado
presents evidence that Rodriguez and Yireh sold the Gambier Property in May
2023 and asserts without documentary evidence that Defendants did not finish
the Project before they sold the Gambier Property. Coronado Decl., ¶7. Coronado fails to demonstrate he sent Yireh
written notice of his intent to accelerate amounts owed under the December 2021
Note unless it cured the default within 30 days. Coronado Decl., Ex. 4.
Because
Yireh does not oppose this application, these defects are waived.
b.
Secured by Deed of Trust
An
attachment may not be issued on a claim which is secured by any interest in
real property arising from agreement, statute, or other rule of law. CCP §483.010(b). However, an attachment may be issued where
the claim was originally so secured but, without any act of the plaintiff or
the person to whom the security was given, the security has become valueless or
has decreased in value to less than the amount then owing on the claim, in
which event the amount to be secured by the attachment shall not exceed the
lesser of the amount of the decrease or the difference between the value of the
security and the amount then owing on the claim. Id.
Coronado
provides the deeds of trusts securing the 2020 and Spring 2021 Notes. Coronado Decl., Exs. 2-3. Although Coronado asserts Defendants never
recorded these deeds of trust (Coronado Decl., ¶¶ 4-5), they did not need to do
so for attachment to be unavailable for these loans. Recordation of a trust deed is not usually
required for its validity. RNT
Holdings, LLC v United Gen. Title Ins. Co. (2014) 230 Cal.App.4th 1289,
1295.
Yireh
borrowed money under the December 2021 Note to purchase the Project
Properties. Coronado Decl., ¶6. As with the prior Notes, the December 2021
Note provided for a separate Deed of Trust to protect Coronado against any loss
stemming from Yireh’s breach. Coronado
Decl., ¶6, Ex. 4. Coronado does not
provide any evidence that Yireh failed to sign a Deed of Trust for the Project
Properties. The failure to record such a
Deed of Trust is not required. If one
was signed to secure the December 2021 Note, that is sufficient to prevent
Coronado from obtaining an attachment.
Yireh
has sold the Gambier Property for $225,000 and listed the Pueblo Property for
sale. Coronado Decl., ¶¶ 7-8, 13, Exs. 5,
13. The sale of the Gambier Property decreased
the value of Coronado’s security interest in any Deed of Trust. But Coronado’s security interest in such a
Deed of Trust remains because Yireh has not sold the Pueblo Property. Coronado fails to demonstrate the value of
the Pueblo Property is less than the $180,000 owed under the December 2021
Note. See CCP §483.010(b).
Coronado’s
claim against Yireh under the December 2021 Note is secured by the interest in
the Pueblo Property. Because its value
may exceed the amount owed, no right to attach order may issue on this claim.
c.
Conclusion
Coronado
has not shown that Yireh did not sign a Deed of Trust as the 2021 Note
requires. Nor has he shown that such a
Deed of Trust would not sufficiently secure the loan. See CCP §483.010(b). As a result, he has not demonstrated a
probability of success on the merits.
4.
Attachment Sought for a Proper Purpose¿
Attachment
must not be sought for a purpose other than the recovery on the claim upon
which attachment is based.¿ CCP §484.090(a)(3).
Coronado seeks attachment for a proper purpose.
E. Conclusion
The
application for a right to attach order is denied.
F.
Supplemental Analysis
The
hearing was continued for Coronado to provide a supplemental declaration showing
that he never received a deed of trust, was never informed that Yireh had
signed one, and the Los Angeles County Recorder’s office did not record one.
1.
Statement of Facts
Coronado
never received a mortgage, deed of trust, or a security deed on any real
property, including the Project Properties, to secure the December 2021
Note. Coronado Supp. Decl., ¶4. Coronado never heard that Defendants had
signed a mortgage, deed of trust, or security deed on such real property to
secure the December 2021 Note. Coronado
Supp. Decl., ¶4.
Defendants
sold the Gambier Property without ever contacting Coronado to pay off the December
2021 Note. Coronado Supp. Decl., ¶6.
There
is no mortgage, deed of trust, or security deed recorded against either Project
Property to secure the December 2021 Note.
Coronado Supp. Decl., ¶7. On
January 5, 2024, Coronado received an ALTA Commitment For Title Insurance from
Fidelity National Title Insurance Company for the Pueblo Property. Coronado Supp. Decl., ¶7, Ex. 18. It lists one deed of trust in 2017 to secure
$200,000 owed to Anne Messenger. Coronado
Supp. Decl., ¶7, Ex. 18. It also lists two
deeds of trust in 2019 to secure a collective $301,500 owed to Danco, Inc. Coronado Supp. Decl., ¶7, Ex. 18. Neither company has anything to do with
Coronado or the December 2021 Note.
Coronado Supp. Decl., ¶7.
The
transaction history on First American Title’s property reports for the Project
Properties (Coronado Decl., ¶¶ 7, 9, Exs. 5, 8) also show deeds of trust in
favor of companies Danco, Inc. and Anne Messenger, but not Coronado. Coronado Supp. Decl., ¶7.
The
claim at issue in this application and Complaint is not secured by any
mortgage, deed of trust or lien on real property. Coronado Supp. Decl., ¶5.
Coronado
gave the required notice of default to both Defendants in September 2023. Coronado Supp. Decl., ¶8.
2.
Analysis
The
court previously continued Coronado’s application for a right to attach order against
Yireh to show that the claim was not secured by a deed of trust on the Project
Properties. Coronado properly noticed
this continuance.
Coronado
asserts that he never received a mortgage, deed of trust, or a security deed on
any real property, including the Project Properties, to secure the December
2021 Note. Coronado Supp. Decl.,
¶4. He submits the ALTA title policy commitment
as evidence that no mortgage, deed of trust, or security deed has been recorded
against the Pueblo Property to secure the amount owed under the December 2021 Note. Coronado Supp. Decl., ¶7, Ex. 18. He also notes that the First American Title
property reports submitted with the moving papers (Coronado Decl., ¶¶ 7, 9,
Exs. 5, 8) do not show deeds of trust in his favor recorded against either
Project Property. Coronado Supp.
Decl., ¶7.
Coronado
has demonstrated that no deed of trust secures the claim underlying this
application for a right to attach order.
The application for a right to attach order is granted in the amount of
$180,435. Coronado has not filed a
proposed right to attach order and must do so in two court days or it will be
waived. No right to attach order shall
issue until Coronado files a $10,000 undertaking.
[1] Coronado
failed to provide courtesy copies of the application for a right to attach
order and notice of the application, in violation of the Presiding Judge’s
First Amended General Order Re:
Mandatory Electronic Filing.
His counsel is admonished to provide courtesy copies in all future
filings.
[2]
Coronado also presents evidence that Defendants currently list Yireh’s other
properties for sale and have listed Rodriguez’s home in the past. Coronado Decl., ¶¶ 11-12, 14-16, Exs. 12,
14-17. He asserts Defendants intend to put
the proceeds of these sales beyond creditors’ reach. Coronado Decl., ¶¶ 11, 16-17. The court need not discuss this in detail; Coronado
does not need to demonstrate a likelihood of harm for a noticed application for
a right to attach order.