Judge: Melvin D. Sandvig, Case: 24CHCV01421, Date: 2024-10-16 Tentative Ruling
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Case Number: 24CHCV01421 Hearing Date: October 16, 2024 Dept: F47
Dept. F47
Date: 10/16/24
Case #24CHCV01421
MOTION TO
EXPUNGE LIS PENDENS
Motion filed on 7/25/24.
MOVING PARTY: Defendant Civic Financial Services, LLC and
Fay Servicing, LLC
RESPONDING PARTY: Plaintiff Darlene Freeland
NOTICE: ok
If the Court does
not grant the motion to expunge, Fay requests that the Court require Plaintiff
to post an undertaking in the amount of at least $350,000.00 to protect
Defendants against the loss and diminution in the value of the Property and for
accruing fees and costs and lost interest that Civic must pay while this action
is resolved.
RULING: The hearing on the motion is continued to
11/6/24.
This action arises out of Plaintiff Darlene Freeland’s (Plaintiff)
default on a loan secured by real property located at 8449 Melvin Avenue,
Northridge, California 91324 (the Property).
Plaintiff alleges that she acquired the Property after her mother died. (FAC ¶15).
At the time Plaintiff acquired the Property, it had a loan attached to
it in the amount of approximately $668,000.00.
(FAC ¶16). Plaintiff alleges that
at the time the Property was valued at $1,400,000.00. Id.
Plaintiff alleges that she fell behind on the mortgage
due to the collapse of her industry and the failure of tenants on the Property
to pay rent. (FAC ¶17). As a result, Plaintiff obtained a loan from
Defendant Civic Financial Services, LLC (Civic) in the amount of $805,000.00
secured by a Deed of Trust on the Property.
(FAC ¶¶19-21). Defendant Fay
Servicing, LLC (Fay) serviced the loan for Civic. Plaintiff contends that Defendants should
have known she could not afford the monthly payments on the loan. (FAC ¶22).
On 7/6/23, after Plaintiff defaulted on the loan from
Civic secured by the Property, Defendants recorded a Notice of Default. (FAC ¶26).
On 3/20/24, Defendants conducted a Trustee Sale and purchased the
Property for $901,907.00. (FAC ¶27).
On 4/17/24, Plaintiff filed this action against Civic and
Fay (collectively, Defendants) for: (1) Wrongful Foreclosure, (2) Violation of
Civil Code 2924.17, (3) Negligence, (4) Breach of the Covenant of Good Faith
and Fair Dealing and (5) Violation of California Business & Professions
Code 17200, et seq. and 17500, et seq. In
response to Defendants’ demurrer to the original complaint, on 7/5/24,
Plaintiff filed the operative First Amended Complaint which alleges causes of
action for: (1) Quiet Title, (2) Violation of Business & Professions Code
17200, et seq. and 17500, et seq., (3) Breach of the Covenant of Good Faith and
Fair Dealing, (4) Misrepresentation and (5) Violation of California Homeowner
Bill of Rights (HBOR) and Truth In Lending Act (TILA).
On 7/25/24, Defendants filed and served the instant
Motion to Expunge Lis Pendens whereby Fay on behalf of Civic seeks an order
expunging the notice of pendency of action (lis pendens) recorded on or about
4/18/24, Instrument Number 202402767l4, against the real property commonly described
as 8449 Melvin Avenue, Northridge, California 91324. Additionally, Fay requests that the Court
award Civic its attorney’s fees incurred in filing this motion in the amount of
$9,565.00. If the Court does not grant
the motion to expunge, Fay requests that the Court require Plaintiff to post an
undertaking in the amount of at least $350,000.00 to protect Defendants against
the loss and diminution in the value of the Property and for accruing fees and
costs and lost interest that Civic must pay while this action is resolved.
Plaintiff failed to file an opposition to the motion with
the Court. However, on 10/7/24,
Defendants filed a reply to Plaintiff’s opposition to the motion which
establishes that an opposition to the motion was served on Defendants.
Plaintiff is ordered to file the opposition papers by the
end of the day (10/16/24) and the hearing will be continued so that the Court
can review all papers relevant to the matter before making a ruling on the
merits.
The Court notes that Plaintiff also failed to file an opposition
to the demurrer which is scheduled for hearing on 10/17/24. Again, Defendants have filed a reply which
establishes that an opposition was served on Defendants. Therefore, Plaintiff is also ordered to file
the opposition to the demurrer by the end of the day (10/16/24). The 10/17/24 hearing on the demurrer is advanced to
10/16/24 and also continued to 11/6/24.