Sanchez v. El Monte Investments, LLC CA2/5
A dispute arose between a former property owner and her secured lender that purchased the property at a foreclosure sale following the owner’s default. The dispute centered on which of them was entitled to certain insurance proceeds occasioned by fire damage to the property. The lender obtained a court order awarding it the disputed proceeds, and the former owner sued the lender for conversion. The former owner eventually assigned her conversion claim to her attorneys, who lost at trial and were ordered to pay the lender’s attorney fees pursuant to a provision in the foreclosed upon deed of trust for the property. We are asked to decide whether the conversion claim is within the scope of the trust deed’s attorney fee provision and, if so, whether that provision could be asserted against the attorneys that obtained the assigned conversion claim.
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