California Court of Appeals, Second District, Sixth Division
Superior Court of Santa Barbara County, No. 15CV04560, Thomas
Pearce Anderle, Judge.
[Copyrighted Material Omitted]
Gillies, pro. per., for Plaintiff and Appellant.
Cave, Richard C. Ochoa and Alfred Shaumyan for Defendant and
Respondent JPMorgan Chase Bank, N.A.
Williams & Sorensen, Richard J. Reynolds and Joseph P.
Buchman for Defendant and Respondent MTC Financial Inc.,
doing business as Trustee Corps.
Acting P. J., with Perren and Tangeman, JJ., concurring.
Cal.Rptr.3d 212] YEGAN, Acting P. J.
The purpose of the law of contracts is to protect the
reasonable expectations of the parties." ( Ben-Zvi
v. Edmar Co. (1995) 40 Cal.App.4th 468, 475 [47
Cal.Rptr.2d 12].) This principle applies to the law of "
mortgages." A person who borrows money from a bank to
purchase or refinance a home has a reasonable expectation
that the bank will fund the loan. The bank has a reasonable
expectation that monthly mortgage payments will be made.
Here, appellant's reasonable expectations were met. The
bank's were not. Nonpayment of the mortgage for
approximately eight years while the borrower remains in
possession is an egregious abuse. Respondent argued, and the
trial court agreed, that appellant is " gaming the
system." The game is over.
Gillies, an attorney, appeals a judgment of dismissal entered
after the trial court sustained the demurrer of JPMorgan
Chase Bank, N.A. (Chase), without leave to amend. We affirm.
AND PROCEDURAL HISTORY
lawsuit is the fourth in a series brought by Gillies since
2009 challenging Chase's efforts to foreclose upon his
real property. The four lawsuits concern similar allegations
of claimed wrongful foreclosure procedures and Chase's
standing to foreclose. They each sought to vindicate the same
primary right. ( Post, at p. 914 et seq.)
1992, Gillies acquired residential property at 3756 Torino
Drive in Santa [213 Cal.Rptr.3d 213] Barbara. On August 12,
2003, he obtained a $500,000 loan from Washington Mutual
Bank, FA (WaMu), and executed an adjustable interest rate
promissory note in favor of WaMu. A deed of trust was
recorded to secure the loan.
September 25, 2008, the Federal Deposit Insurance
Corporation, as receiver for WaMu, and Chase entered into a
purchase and assumption agreement (Agreement). Paragraph 3.1
of the Agreement provides that Chase purchased " all
right, title, and interest of the Receiver in and to all of
the assets" of WaMu. The Agreement also states that
Chase " specifically purchases all mortgage servicing
rights and obligations of [WaMu]."
2009, Gillies defaulted on the loan. California Reconveyance
Company (CRC), as trustee, recorded a notice of default on
August 13, 2009, and a notice of trustee's sale on
November 18, 2009. Prior to the scheduled foreclosure sale,
Gillies filed a complaint in the trial court against CRC and
Chase, alleging that the notice of default was not recorded,
that it was not filed in compliance with Civil Code section
2923.5, and that CRC and Chase did not properly record the
notice of sale. CRC and Chase demurred to the
complaint and the trial court sustained the demurrer without
leave to amend. ...