Judge: Malcolm Mackey, Case: 22STCV10313, Date: 2023-05-11 Tentative Ruling
Case Number: 22STCV10313 Hearing Date: May 11, 2023 Dept: 55
WADE
v. WYNSTAR INVESTMENTS, LLC, 22STCV10313
Hearing Date: 5/11/23,
Dept. 55.
#9: MOTION FOR ORDER OF DISCHARGE AND DISMISSAL AS
STAKEHOLDER AND AWARD OF COSTS.
Notice: Okay
No Opposition
MP:
Defendant and Cross-Complainant FIDELITY NATIONAL TITLE COMPANY.
RP:
Summary
On 3/24/22, Plaintiff LARRY WADE filed a Complaint alleging
that he purchased Malibu residential property from Defendant WYNSTAR INVESTMENTS,
LLC, but that he now wants to rescind the sale and to get amounts for damages,
including because defendants intentionally concealed that the property was red-tagged,
and that no other improvement could be made on the property without resolving
the issues of the permits and the work done by Defendant WYNSTAR.
The causes of action are:
1. RECISSION;
2. FRAUD;
3. NEGLIGENT
MISREPRESENTATION;
4. BREACH OF CONTRACT - COUNT
I;
5. UNJUST ENRICHMENT;
6. NEGLIGENCE - COUNT I;
7. NEGLIGENCE - COUNT II;
8. BREACH OF CONTRACT - COUNT
II; and
9. DECLARATORY RELIEF.
On 6/2/22, Defendant FIDELITY NATIONAL TITLE COMPANY filed
a Cross-Complaint in Interpleader against Plaintiff and Defendant WYNSTAR, as the
alleged real property buyer and seller, regarding $150,000 of withheld escrow
funds per an addendum to Escrow Instructions and Standard Residential Purchase
Agreement.
MP
Positions
Moving party requests an Order that it be discharged
from liability involving the rights and obligations of the parties to this
action arising out of the $150,000 deposited with it as escrow agent; that it
be dismissed from this action upon its deposit of such funds with the Clerk;
and that it be awarded its filing fee of $435, plus $5,092.50 in attorney fees,
for a total of $5,527.50, on grounds including the following:
·
Moving Defendant holds money without
claiming any right or interest thereto and would deposit the money with the Court
Clerk, to be delivered to whichever party may establish their right to said
funds. CCP §§
386 et seq.
·
Mutual instructions by both the buyer and
seller of residential property are required in order for Defendant to release withheld
funds to the Buyer (Blair Decl, ¶ 8, Exhibit 7).
·
There now remains $150,000 in FNTC’s
escrow account.
Tentative
Ruling
The unopposed motion is granted, as prayed.
After a stakeholder’s right to interplead is shown,
and the money over which conflicting claims have been made, is deposited with
the court, the stakeholder may be discharged from liability. E.g., City of Morgan Hill v. Brown
(1999) 71 Cal.App.4th 1114, 1122. Parties who do not want to participate as
claimants in an interpleader action may file a disclaimer relinquishing claims
to the stake. Cantu v. Resolution
Trust Corp. (1992) 4 Cal.App.4th
857, 875.
In an interpleader proceeding, when discharging a
stakeholder, judges have discretion to award them their costs and reasonable
attorney fees out of an amount that has been deposited with the court. Wells Fargo Bank, N.A. v. Zinnel
(2004) 125 Cal. App. 4th 393, 400; Canal
Ins. Co. v. Tackett (2004) 117 Cal. App. 4th 239, 244; UAP-Columbus JV 236132 v. Nesbitt (1991)
234 Cal.App.3d 1028, 1036. The amount
of attorney fees and costs must be restricted to those incurred as to the
interpleader remedy. Sweeney v.
McClaran (1976) 58 Cal.App.3d 824, 830.
“‘When the right of interpleader and discharge has
been established ..., the trial of the issues between the conflicting
claimants proceeds on the original and any additional pleadings deemed
necessary.’” In re Peterson (2007) 156 Cal.App.4th 676, 682-683.
*IF PARTIES WOULD LIKE TO SUBMIT ON THE COURT’S
TENTATIVE RULING, PLEASE CALL 213-633-0655*