California Court of Appeals, Second District, Sixth Division
Superior Court of Ventura County, No.
56-2015-00471416-CU-OR-VTA Vincent J. O'Neill, Jr., Judge
Adleson, Hess & Kelly, Patric J. Kelly, Phillip M.
Adleson, Lisa J. Parrella; Law Offices of Kirk Rimmer and
Kirk Rimmer, for Plaintiff and Appellant Placer Foreclosure,
Klapach & Klapach, Joseph S. Klapach; Ivie, McNeil &
Wyatt, Rickey Ivie and Samuel E. Chilakaos, for Defendant and
Appellant Solomon Aflalo.
Foreclosure, Inc., acting as trustee, conducted a foreclosure
sale of property owned by Solomon Aflalo. The foreclosure
sale resulted in surplus proceeds. When Aflalo filed a
wrongful foreclosure action against Placer and the
third-party buyer, Pro Value Properties, Inc., Placer filed a
complaint in interpleader and deposited the surplus proceeds
with the court.
appeals judgment of dismissal after the trial court sustained
Aflalo's demurrer to the interpleader complaint without
leave to amend. In a cross-appeal, Aflalo contends: the trial
court erred when it did not direct the clerk of the court to
release the interpleaded funds to him. We affirm the judgment
of dismissal. We remand with directions to the trial court to
release the interpleaded funds to Aflalo.
and procedural history
borrowed funds to buy a home. The loan was secured by a deed
of trust. Placer was the trustee under the deed of trust.
Aflalo defaulted on the loan, and Placer conducted a
foreclosure sale. Pro Value bought the property. The sale
resulted in $974, 786.81 in surplus proceeds, after payment
of the fees and costs of sale and the obligations on the
filed a wrongful foreclosure action. He named Placer and Pro
Value as defendants. He sought to invalidate the foreclosure
sale and quiet title to the property.
responded with the interpleader complaint. Placer alleged the
wrongful foreclosure action gave rise to conflicting claims
to the surplus funds. It alleged it has “no interest in
the Surplus and is indifferent with respect to which
Defendant, or combination of Defendants, should receive the
the trial court sustained Aflalo's demurrer to the
interpleader complaint without leave, Aflalo filed an
application for a judgment of dismissal. He asked the court
to release the interpleaded surplus funds to him.
trial court entered a judgment of dismissal of the
interpleader complaint and ordered that Placer “may
apply to the court for a release of the [surplus] Funds
deposited with the court.” The trial court denied
Aflalo's request to release the interpleaded funds to