Le Beau v. Bank of America
Plaintiffs and appellants Charles P. Le Beau and Victoria J. Le Beau (Plaintiffs) appeal a summary judgment granted in favor of defendant and respondent Bank of America, N.A. (the Bank) and its substituted trustee, defendant and respondent Northwest Trustee Services, Inc. (Northwest; sometimes together, Defendants), in this action alleging various claims arising out of nonjudicial foreclosure. In 1988, Plaintiffs refinanced their La Jolla home with Gibraltar Savings (Gibraltar or the lender), obtaining a mortgage loan secured by a deed of trust recorded against the home. By 1991, the Gibraltar note and trust deed had been transferred to Security Pacific Bank (Security Pacific), through savings and loan insolvency procedures involving the Resolution Trust Corporation (RTC). In 1992, Security Pacific was merged into the Bank, and Plaintiffs made payments to the Bank until 2007. Plaintiffs then experienced financial difficulties and stopped making regular mortgage payments, as well as related insurance policy payments.
In 2008, based on Plaintiffs' defaults, nonjudicial foreclosure proceedings were commenced by the Bank, in its capacity as the successor in interest to the lender, acting through its newly substituted trustee Northwest. In February 2009, Plaintiffs brought suit against the Bank and Northwest, alleging causes of action for quiet title, tort and contract theories, all claiming Defendants lacked authority to proceed with the foreclosure. After extensive motion practice, the trial court granted a joint motion for summary judgment by Defendants on the first amended complaint, and denied Plaintiffs' cross-motion for summary judgment. (Code Civ. Proc., § 437c; all further statutory references are to this code unless noted.)
On appeal, Plaintiffs contend there were procedural irregularities in the manner in which the foreclosure proceedings were conducted, because of the complicated history of the transfer of the loan, its note and trust deed among the various financial institutions involved. Plaintiffs also contend the trial court committed several evidentiary, procedural, and substantive legal errors in ruling on Defendants' summary judgment motion and their cross-motion, or abused its discretion. Plaintiffs contend they raised meritorious objections that must have been inadequately considered.
We reject Plaintiffs' challenges to the court's granting of the joint Bank/Northwest motion for summary judgment. Because we conclude the Bank demonstrated as a matter of law that it was a proper party to initiate the nonjudicial foreclosure action, and it appropriately appointed the successor trustee and followed statutory procedures, no legal, evidentiary, or procedural error is apparent on this record. (Civ. Code, § 2924, subd. (a)(1).) We grant Defendants' request for judicial notice on appeal regarding documentation of the bank merger (part III.A, post), and affirm the summary judgment.
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