Haynes v. Emc Mortgage Corp.
205 Cal. App. 4th 329
| Cal. Ct. App. | 2012Background
- Haynes bought a house in Oakland on May 4, 2006 and executed a deed of trust naming EquiFirst as lender, Placer Title as trustee, and MERS as beneficiary securing a $437,750 note.
- Foreclosure proceedings were initiated by Quality Loan Service Corp. in April 2008; QLSC substituted as trustee in May 2008 and recorded a notice of trustee's sale in August 2008.
- Property was sold at public auction on November 24, 2008; a trustee's deed upon sale was recorded in favor of EMC Mortgage on December 4, 2008.
- Haynes filed a first amended complaint on December 21, 2009 alleging unlawful foreclosures and multiple statutory claims on behalf of himself and a putative class.
- EMC, Bear Stearns, and QLSC demurred in April 2010, with the court sustaining various demurrers and granting leave to amend only as to some claims; final judgments were entered in favor of EMC, Bear Stearns, and QLSC.
- Appellant Haynes appeals the demurrer ruling, challenging whether Civil Code 2932.5 applies to deeds of trust as it does to mortgages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 2932.5 applies to deeds of trust | Haynes: stockwell distinction abrogated | Defendants: 2932.5 applies only to mortgages | 2932.5 does not apply to deeds of trust. |
Key Cases Cited
- Stockwell v. Barnum, 7 Cal.App.413 (1908) (holding 2932.5 does not apply to deeds of trust; foreclosure under deed of trust unaffected by unrecorded assignment)
- Calvo v. HSBC Bank USA, N.A., 199 Cal.App.4th 118 (2011) (section 2932.5 does not apply to deeds of trust; follows Stockwell)
- Bank of Italy etc. Assn. v. Bentley, 217 Cal. 644 (1933) (discusses lien vs. title theories and limits of section 2932.5's scope)