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

 

RELIEF REQUESTED: Defendant Fay Servicing, LLC on behalf of Civic Financial Services LLC 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. 

 

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.