Judge: Joseph Lipner, Case: 23STCV13213, Date: 2023-12-14 Tentative Ruling

Case Number: 23STCV13213    Hearing Date: December 14, 2023    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

Plaintiff Newrez LLC (“Plaintiff”) moves for an order authorizing service on Defendant Aetna Finance Company (“Aetna”) by delivery of the Summons and First Amended Complaint (“FAC”) to the Secretary of State of the State of California.

The Court GRANTS Plaintiff’s motion and GRANTS LEAVE for Plaintiff to serve Defendant Aetna with the Summons and FAC by the method set forth in California Corporations Code, section 2114, subd. (b).

Background

This is an action for cancellation of two older deeds of trust which encumber title to residential real property located at 1912 Las Flores Dr., Los Angeles, CA 90041 (the “Property”). Plaintiff contends that the loans secured by each of the two deeds have been satisfied, but that reconveyances were never recorded.

One deed is over 50 years old, and the second one is over 40 years old.

Aetna is the beneficiary of the deed which is over 40 years old. On February 19, 1982, Bruce B. Boles and Caroline J. Boles executed a Short Form Deed of Trust (the “Deed”) and Assignment of Rents to secure a debt in the amount of $8,317.15, naming Aetna as the beneficiary. The deed was filed as instrument number 82-206196 with Los Angeles County, California. (Lewin Decl., Exh. 1.)

On July 7, 2023, Plaintiff served the Summons and FAC on Aetna by serving the Office of the Secretary of State for the State of California. (Lewin Decl., Exh. 3.) Aetna failed to respond to the FAC. Plaintiff filed a Request for Entry of Default on August 17, 2023. The request was rejected in the absence of a court order permitting service on the Secretary of State.

Plaintiff filed this motion on October 9, 2023 seeking leave to serve Aetna by serving the Secretary of State of the State of California. No party filed an opposition.

Legal Standard

California Corporations Code, section 2114 provides:

“(a) A foreign corporation that has transacted intrastate business and has thereafter withdrawn from business in this state may be served with process in the manner provided in this chapter in any action brought in this state arising out of that business, whether or not it has ever complied with the requirements of this chapter.

(b) A foreign corporation that has surrendered its right to transact intrastate business pursuant to Section 2112 or 2113 may be served with process in any action upon a liability or obligation incurred within this state prior to that surrender by delivery of the process to the Secretary of State, or an assistant or a deputy to the Secretary of State pursuant to this chapter and no court order authorizing this service shall be required. The process shall be mailed in the manner prescribed in this chapter except that it shall be sent to the address to which process is authorized to be sent in the certificate of surrender or to the address of the surviving domestic corporation in the case of a surrender under Section 2113.

(c) If a foreign corporation that is qualified to transact intrastate business has its right to transact such business forfeited by the Franchise Tax Board pursuant to the Bank and Corporation Tax Law (Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code), service of process on that corporation may be effected in the manner set forth in Sections 2110 and 2111, as if the right to transact intrastate business had not been forfeited.

(d) The fact that a corporation ceases to transact intrastate business without filing a certificate of surrender does not revoke the appointment of any agent for the service of process.”

(Ibid.)

Discussion

Here, Aetna transacted business in California when it loaned the money which was secured by the Deed which encumbers California real property.

In 1996, Aetna filed a Certificate of Surrender of Right to Transact Intrastate Business with the Office of the Secretary of State of California. (Lewin Decl. Exh. 2.)

Thus, Aetna has transacted business in the State of California, and subsequently surrendered its right to do so. Therefore, service on Aetna by the method set forth in California Corporations Code, section 2114, subd. (b) is proper.