Judge: Stephen I. Goorvitch, Case: 22STCV33441, Date: 2023-03-01 Tentative Ruling

Case Number: 22STCV33441    Hearing Date: March 1, 2023    Dept: 39

Juan Ligutom, et al. v. Raymond Ligutom, et al.

Case No. 22STCV33441

Demurrer

            Plaintiffs Juan Ligutom and Anh My Ligutom (collectively, “Plaintiffs”) filed this action against Raymond Ligutom and Stella M. Ligutom (collectively, “Defendants”), among others.  Plaintiffs assert causes of action for: (1) breach of oral contract, (2) equitable estoppel, (3) quiet title, (4) slander of title, (5) adverse possession, and (6) declaratory relief.  Plaintiffs allege that Defendants, who are Plaintiff Juan Ligutom’s parents, agreed to help them purchase a house.  Plaintiffs allege that Defendants “orally agreed to help by qualifying for financing, temporarily holding title, and transferring title to [Plaintiffs] after they were able to qualify for financing on their own.”  (Complaint, ¶ 11.)  Plaintiffs allege that they “would locate the home, negotiate the purchase, and make all payments,” and that they “paid the entire down payment and closing costs.”  (Complaint, ¶¶ 11, 14.)  Plaintiffs allege that “Defendants did not pay anything toward the purchase price of the house” and that Defendants have refused to transfer title, per the agreement.  (Complaint, ¶¶ 16, 25.)  Previously, Defendants demurred to the complaint.  The Court ruled as follows:

            1.         Breach of Contract – Overruled

            2.         Equitable Estoppel – Sustained without leave to amend 

            3.         Quiet Title – Sustained with leave to amend

            4.         Slander of Title – Sustained without leave to amend

            5.         Adverse Possession – Sustained without leave to amend

            6.         Declaratory Relief – Overruled

Plaintiffs elected not to file a first amended complaint.  Therefore, the operative causes of action are breach of contract and declaratory relief.  Now, Defendants move to expunge the lis pendens on the property.

The party opposing a motion to expunge lis pendens has the burden of proof.  (Code Civ. Proc., § 405.30.)  The party opposing the motion to expunge lis pendens must demonstrate: (1) that the action affects title to or right of possession of the real property described in the notice; (2) that the party recorded the notice for a proper purpose and in good faith; and (3) that the real property claim is probably valid by a preponderance of the evidence.  (Hunting World, Inc. v. Superior Court (1994) 22 Cal.App.4th 67, 70.)

            Defendants argue that Plaintiffs’ claim is barred by the statute of frauds.  The Court denies the motion for the reasons discussed in its ruling on Defendants’ demurrer, which the Court incorporates by reference.  (See Court’s Minute Order, dated January 20, 2023.)  Plaintiffs’ possession of the property, as well as their payments toward the mortgage, property taxes, insurance, and maintenance, constitutes partial performance.  (See Calanchini v. Branstetter (1890) 84 Cal. 249, 252.)    

Defendants also argue that Plaintiff’s claim is invalid because the Department of Veteran Affairs holds title to the property until the loan is satisfied.  However, Plaintiffs allege Defendants agreed to transfer title for the property to Plaintiffs in the future, which is permissible if Defendants obtain permission from the Department of Veteran Affairs.  (Mil. & Vet. Code, § 987.73, subd. (a).)  The Court has considered Defendants’ remaining arguments and finds none to be persuasive.

Based upon the foregoing, the Court denies Defendants’ motion to expunge the lis pendens.  As the prevailing parties on this motion, Plaintiffs are entitled to recover their reasonably attorneys’ fees.  (Code Civ. Proc., § 405.38.)  The Court awards Plaintiffs their attorneys’ fees in the sum of $2,850, which represents six hours of attorney time to prepare the opposition and attend the hearing at $475 per hour.  The Court finds the billing rate and hours fair and reasonable.

CONCLUSION AND ORDER

            The Court orders as follows:

            1.         Defendants’ motion to expunge lis pendens is denied.

            2.         Defendants shall pay Plaintiffs, by and through counsel, attorney’s fees in the amount of $2,850 within thirty (30) days.

            3.         Plaintiffs’ counsel shall provide notice and file proof of such with the Court.