Judge: William A. Crowfoot, Case: 23AHCV00912, Date: 2023-12-15 Tentative Ruling

Case Number: 23AHCV00912    Hearing Date: December 15, 2023    Dept: 3

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES - NORTHEAST DISTRICT

 

U.S. BANK TRUST NATIONAL ASSOCIATION,

                   Plaintiff(s),

          vs.

 

S&H HOSPITAL PHARMACIES, INC., et al.,

 

                   Defendant(s).

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     CASE NO.:  23AHCV00912

 

ORDER RE: DEFAULT PROVE-UP HEARING

 

Dept. 3

8:30 a.m.

December 15, 2023

 

 

 

 

          Plaintiff U.S. Bank Trust National Association (“Plaintiff”), in its capacity as owner trustee for RCF 2 Acquisition Trust c/o U.S. Bank Trust National Association, filed this action against defendants S & H Hospital Pharmacies, Inc., Pension Funds, and S & H Hospital Pharmacies Incorporated Pension and Profit Sharing Fund (collectively, “Defendants”) for: (1) cancellation of instrument and (2) declaratory relief.

"A written instrument, in respect to which there is a reasonable apprehension that if left outstanding it may cause serious injury to a person against whom it is void or voidable, may, upon his application, be so adjudged, and ordered to be delivered up or canceled." (Civ. Code, § 3412.) An action for cancellation cannot be pleaded generally. Plaintiff must specifically allege the facts demonstrating the invalidity of the instrument under attack. (Wolfe v. Lipsy (1985) 163 Cal.App.3d 633, 638.) An instrument may be cancelled on the grounds that it has been paid. (Tosi v. Northern California Building & Loan Ass'n (1937) 23 Cal.App.2d 416, 419.)

Here, Plaintiff alleges that the loans secured by the Prior Deeds of Trust were fully paid and/or satisfied but the lien was not reconveyed or released by a title insurance company. (Complaint, ¶ 16.) Given the chain of title concerning the property at issue, Plaintiff’s evidence supports the allegation that the loans secured by the Prior Deeds of Trust have been paid off and the Prior Deeds of Trust should be cancelled as they otherwise cloud title to the property. The same evidence also supports Plaintiff’s right to declaratory relief.

Accordingly, because the Prior Deeds of Trust remain a cloud on title, Plaintiff has established that the Prior Deeds of Trust should be cancelled to place Plaintiff in the first priority lien position. Plaintiff is also entitled to a declaration that the Prior Deeds of Trust are of no further force and effect and any interest held by Defendants and/or their successors and assigns or any subsequent lienholder, encumbrancer, or creditor who purports to take from Defendants are subject to Plaintiff’s beneficial interest.

Plaintiff’s application for default judgment is GRANTED.

Dated this 15th day of December, 2023

 

 

 

 

       William A. Crowfoot

Judge of the Superior Court