Multani v. Witkin & Neal
155 Cal. Rptr. 3d 892
Cal. Ct. App.2013Background
- Multani and Rahim Multani challenged a nonjudicial foreclosure by the Castle Green HOA for delinquent assessments on their condominium unit.
- HOA and its trustee Witkin & Neal conducted a sale after allegedly improper notices and post-sale actions.
- IndyMac Bank’s prior rescission of a January 2009 foreclosure was argued to extinguish the HOA lien and require restart of foreclosure.
- Plaintiffs alleged multiple procedural defects and torts stemming from the foreclosure process.
- The trial court granted summary judgment dismissing foreclosure claims, finding lack of prejudice and proper tender; court denied other claims.
- The California Court of Appeal reversed, holding the 90-day post-sale redemption notice under Civ. Code 1367.4 and Civ. Code 729.050 was not shown, thus triable issues remained on foreclosure claims, and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 729.050/post-sale redemption notice was properly provided | Multani argued notice was not provided | Witkin & Neal argued notice not required or properly evidenced | Reversed; insufficient evidence of 729.050 notice to negate triable issues |
| Whether defendants complied with 729.050 to negate prejudice | Plaintiffs suffered prejudice from lack of notice | Defendants claim sufficient information existed to determine redemption window | Reversed; prima facie showing of prejudice not established |
| Tender rule applicability to CID redemptions | Tender not required when redemption rights exist and notice failed | Tender required regardless | Reversed; tender rule excused where statutory redemption notice failed and CID rights apply |
| Whether the post-sale notice and postings invalidated the foreclosure claims | Post-sale notices deficient; sale invalid | Pre-sale notices and other compliance argued adequate | Remanded; issues of notice remain triable |
Key Cases Cited
- Lona v. Citibank, N.A., 202 Cal.App.4th 89 (Cal. Ct. App. 2011) (tender and prejudice standards for setting aside nonjudicial foreclosures)
- Residential Capital v. Cal-Western Reconveyance Corp., 108 Cal.App.4th 807 (Cal. Ct. App. 2003) (prejudice inquiry in redemption-related foreclosures)
- Knapp v. Doherty, 123 Cal.App.4th 76 (Cal. Ct. App. 2004) (slight deviations in notice may not void sale if substantial compliance otherwise)
- Ung v. Koehler, 135 Cal.App.4th 186 (Cal. Ct. App. 2005) (foreclosure notice strict compliance required)
- Hypertouch, Inc. v. ValueClick, Inc., 192 Cal.App.4th 805 (Cal. Ct. App. 2011) (summary judgment standard and burden shifting)