SLINTAK v. RETIREMENT CO
Filed 5/16/06
CERTIFIED FOR PUBLICATION
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION SEVEN
| ANNA SLINTAK et al., Cross-complainants and Respondents, v. BUCKEYE RETIREMENT CO., L.L.C., LTD., Cross-defendant and Appellant. | B182875 (Los Angeles County Super. Ct. No. YC 045610) |
APPEAL from a judgment of the Superior Court of Los Angeles County. Bob T. Hight, Judge. Reversed.
Brewer & Brewer and James R. Knoles for Cross-defendant and Appellant.
Gregory Grantham for Cross-complainants and Respondents.
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Appellant Buckeye Retirement Co., L.L.C., Ltd. (Buckeye) appeals from summary judgment entered on the cross-complaint of Anna Slintak and Bohumir Marik (collectively Marik) for quiet title and cancellation of a deed of trust held on property owned by Marik. The trial court held that Buckeye's right to foreclose on a deed of trust encumbering Marik's property had expired under the statute of limitations of the Marketable Record Title Act (MRTA) (Civil Code §§ 880.020, et seq.),[1] and that no exceptions or equitable tolling applied to the statute of limitations of the MRTA. We reverse on the ground the statute of limitations has not run due to the filing of lis pendens in separate, but related, litigation.
FACTUAL BACKGROUND AND PROCEDURAL HISTORY
1. Background Facts.
On October 23, 1989, Redondo Blacksmith, Inc. (RBI),[2] as part of a plan to develop property in Fontana, California, gave Metro Bank (Metro) a trust deed (Metro Trust Deed) on real property located at 350 North Pacific Coast Highway in Redondo Beach, California (Redondo property). The Metro Trust Deed was intended to partially collateralize a loan (Juniper Note) Metro was making to Juniper Park Villa Investment, L.L.P. (Juniper) to purchase property in Fontana (Fontana property), and was additional collateral for the Juniper Note. The Metro Trust Deed was recorded on October 27, 1989, in the records of Los Angeles County. The Juniper Note was also secured by a trust deed on the Fontana property (Fontana Trust Deed). Juniper purchased the land in Fontana with the proceeds of the loan, but the property was not developed.
In 1992, RBI executed three promissory notes payable to Martin Slintak, Anna Slintak, and Jacobs Investments, and gave each of them trust deeds on the Redondo property. These notes are junior to the Juniper Note.
On May 15, 1992, Metro recorded a Notice of Default and Election to Sell on the Fontana property under the Fontana Trust Deed. [3] On October 21, 1992, Metro assigned the Juniper Note to MNSB Properties, Inc. (MNSB), a wholly-owned subsidiary of Metro, and the assignment of the Fontana Trust Deed was recorded on October 29, 1992. On October 22, 1992, MNSB submitted a credit bid at Metro's trustee's sale, and acquired title to the Fontana property.
On October 28, 1992, after the foreclosure of the Fontana Trust Deed, Metro recorded a Notice of Default on the Redondo property under the Metro Trust Deed (October 1992 Notice of Default). The October 1992 Notice of Default stated that the Juniper Note was â€
