Stebley v. Litton Loan Servicing, LLP
202 Cal. App. 4th 522
| Cal. Ct. App. | 2011Background
- Plaintiffs borrowed to purchase their residence and later fell behind on payments.
- Defendants affiliated with the loan foreclosed after avowedly considering modification options but did not inform plaintiffs of a decision.
- Plaintiff Gina Stebley is a dependent adult; defendants had actual notice of this status.
- Trial court sustained demurrers to the complaints and denied leave to amend; the appellate record lacks a third amended complaint.
- Court identifies two coherent legal issues: 2923.5 compliance and dependent adult financial abuse; other claims are abandoned.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Civil Code §2923.5 supports relief after sale | Stebley argues 2923.5 requires consideration of options and harm from foreclosure. | Mabry holds 2923.5 does not provide post-sale relief and cannot mandate modification | No post-sale relief under 2923.5; only potential pre-sale delay. |
| Whether the dependent adult abuse claim is viable | Stebley asserts wrongful taking of property aided by foreclosure. | Foreclosure to recover debt does not constitute wrongful use of property; no loss of equity shown. | Dependent adult abuse claim fails; no wrongful use of property shown. |
Key Cases Cited
- Mabry v. Superior Court, 185 Cal.App.4th 208 (Cal. App. 2010) (2923.5 preemption and post-sale limitations; tender not required post-sale)
- Blank v. Kirwan, 39 Cal.3d 311 (Cal. 1985) (pleading standards; reasonable opportunity to amend)
- Das v. Bank of America, N.A., 186 Cal.App.4th 727 (Cal. App. 2010) (analyze pleading sufficiency for UU and related claims)
- Nguyen v. Calhoun, 105 Cal.App.4th 428 (Cal. App. 2003) (tender in foreclosure disputes; equity considerations)
- Abdallah v. United Savings Bank, 43 Cal.App.4th 1101 (Cal. App. 1996) (tender necessary to attack foreclosure)
- Sierra-Bay Fed. Land Bank Assn. v. Superior Court, 227 Cal.App.3d 318 (Cal. App. 1991) (lender's privilege to pursue economic interests in foreclosure)