Judge: Melvin D. Sandvig, Case: 21CHCV00316, Date: 2022-10-04 Tentative Ruling

Case Number: 21CHCV00316    Hearing Date: October 4, 2022    Dept: F47

Dept. F-47

Date: 10/4/22

Case #21CHCV00316

MOTION FOR JUDGMENT ON THE PLEADINGS

Motion filed on 6/30/22.

MOVING PARTY: Defendant Witkin & Associates, LLC

JOINING PARTY: Defendant Krupe Industries, Inc.

RESPONDING PARTY: Plaintiff Lucy Holdings, LLC

NOTICE: ok

RELIEF REQUESTED: An order granting judgment on the pleadings as to Plaintiff Lucy Holdings, LLC’s First Amended Complaint for Declaratory Relief/Quiet Title.

RULING: The joinder is denied.  The motion is granted with 30 days leave to amend.      

This action arises out of a dispute over property located at 28212 Kelly Johnson Parkway, Units 215 and 225, Santa Clarita, California 91355 (Property).  Title to the property is vested in Plaintiff Lucy Holdings, LLC (Plaintiff).  Defendant Krupe Industries, Inc. (Krupe) and Defendant Witkin and Associates, LLC (Witkin), the foreclosure trustee, were attempting to foreclose on a deed of trust encumbering the Property. 

On 4/23/21, Plaintiff filed its original complaint in this action alleging a cause of action for declaratory relief/quiet title against Krupe and Witkin (collectively, Defendants) and a cause of action for fraud against Krupe.  Defendants demurred to the original complaint and Plaintiff requested a preliminary injunction to stop the foreclosure.  On 8/2/21, this Court overruled the demurrer to the declaratory relief/quiet title cause of action and sustained the demurrer, with leave to amend, as to the fraud cause of action.  (See 8/2/21 Minute Order).  On the same date, this Court granted Plaintiff’s request for a preliminary injunction.  Id.  Plaintiff elected not to amend its fraud claim and on 8/23/21 filed its First Amended Complaint asserting a single cause of action for declaratory relief/quiet title.  On 11/5/21, this Court overruled Defendants’ demurrer  to the First Amended Complaint.  On 11/12/21, Witkin filed a Declaration of Non-Monetary Status.  On 11/15/21, Krupe filed an answer to the First Amended Complaint.  On 11/16/21, Plaintiff filed an Objection to Witkin’s Declaration of Non-Monetary Status.  On 12/17/21, Witkin filed an answer to the First Amended Complaint.  On 5/3/22, Witkin recorded a Notice of Rescission of Notice of Default thereby cancelling the subject foreclosure proceeding.  (See RJN, Ex.1).

After meet and confer efforts failed to resolve the issues presented by this motion, on 6/30/22, Witkin filed and served the instant motion for judgment on the pleadings as to Plaintiff’s First Amended Complaint.  On 9/8/22, Krupe filed a notice of joinder in the motion.    

Witkin’s Request for Judicial Notice (RJN) is granted.

In the opposition, Plaintiff concedes that the First Amended Complaint is moot as to Witkin.    However, Plaintiff requests leave to amend to adequately state claims as to Witkin based on new facts that have emerged to hold Witkin accountable for what Plaintiff claims to be reckless, wanton and malicious disregard of Plaintiff’s property rights and to seek damages that flowed therefrom.  In the reply, Witkin argues that Plaintiff has failed to adequately set forth how it can amend its pleading to state a viable claim against Witkin. 

The Court finds that there is a reasonable possibility that Plaintiff can state a good cause of action against Witkin.  Therefore, the motion is granted with leave to amend.  See Eckler (2015) 238 CA4th 433, 439; Lee (2021) 59 CA5th 719, 733.

The motion essentially admits that the First Amended Complaint adequately states a claim against Krupe when it argues that “[w]hile the declaratory relief claim regarding the Loan’s validity may proceed against Krupe Industries, Inc., it cannot against [Witkin].”  (See Motion, p.13:3-5).  As such, the joinder filed by Krupe is denied as Krupe is not in the same position as Witkin.