What Types of “Damages Claims” Survive a Trustee’s Sale?
February 28, 2018 —
Ben Reeves – Real Estate Litigation blog / Snell & WilmerIntroduction
Arizona’s trustee’s sale statutory scheme provides for the waiver of all defenses and objections to a trustee’s sale that: (i) are not raised prior to the sale, and (ii) do not result in an injunction against the sale going forward.
See A.R.S. § 33-811(C). In other words, if you have an objection to a trustee’s sale, you must seek and obtain an injunction prior to the sale or your objection will be waived.
Arizona’s Court of Appeals previously held that notwithstanding this statutory waiver, “common law” defenses to repayment of the debt survive a non-judicial foreclosure even in the absence of an injunction prior to the sale.
See Morgan AZ Financial, L.L.C. v. Gotses, 235 Ariz. 21, 326 P.3d 288 (Ct. App. 2014). Our analysis of the
Morgan decision can be found
here.
In
Zubia v. Shapiro, 243 Ariz. 412, 408 P.3d 1248 (2018), the Arizona Supreme Court revisited the issue of what claims survive a trustee’s sale, and clarified that if a person fails to enjoin a trustee’s sale prior to its occurrence, then that person waives any and all damages claims dependent upon a trustee’s sale. That person does not, however, waive damages claims that are independent of the sale. Thus, determining what types of claims are “dependent” versus “independent” of a trustee’s sale is of critical importance to lenders and borrowers alike.
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Ben Reeves, Snell & WilmerMr. Reeves may be contacted at
breeves@swlaw.com
What a Difference a Day Makes: Mississippi’s Discovery Rule
November 16, 2023 —
William L. Doerler - The Subrogation StrategistThe discovery rule applies to latent injuries, such that the statute of limitations does not begin to run until the plaintiff knows of or should have known of the injury. In Western World Ins. Group v. KC Welding, LLC, No. 2022-CA-00527-SCT, 2023 Miss. LEXIS 278 (KC Welding), a majority of the justices on the Supreme Court of Mississippi (Supreme Court) affirmed the trial court’s ruling that Western World Insurance Group (Insurer) filed its lawsuit one day late. Thus, the statute of limitations barred Insurer’s lawsuit.
In KC Welding, on July 12, 2018, KC Welding, LLC (KC Welding) sent an employee to Sunbelt Shavings, LLC (Sunbelt) to repair the door of a box containing wood chips. Sunbelt’s employees discovered that KC Welding employees were welding a storage bin that had not been emptied of wood chips and Sunbelt’s employees asked KC Welding’s employees to leave. After that, Sunbelt’s employees attempted to soak the area with water. Later than night, a fire started on Sunbelt’s property, apparently as the result of smoldering wood shavings, a fire that was extinguished on July 13, 2018.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com
CDC Issues Moratorium on Residential Evictions Through 2020
October 05, 2020 —
Steven E. Ostrow, C. Jason Kim, & Marissa Levy - White and Williams LLPOn September 1, 2020, the Centers for Disease Control and Prevention (CDC) announced that it was issuing an order (CDC Order) to temporarily halt residential evictions to prevent the further spread of COVID-19. The CDC Order became effective on September 4, 2020 and will remain in effect through December 31, 2020.
The purpose of the CDC Order is to keep tenants in their residences to reduce crowding in shelters or other shared housing and to reduce the number of unsheltered homeless, as those conditions have been shown to increase the spread of COVID-19.
APPLICABILITY & PROTECTIONS
The CDC Order is broader than the previous eviction moratorium under the Coronavirus Relief and Economic Security Act (CARES Act), which applied only to federally-funded housing and expired on July 24, 2020. Eligible renters include those who qualified for a stimulus check under the CARES Act and individuals who expect to make less than $99,000 this year or a joint-filing couple that expects to make less than $198,000.
Reprinted courtesy of
Steven E. Ostrow, White and Williams LLP,
C. Jason Kim, White and Williams LLP, and
Marissa Levy, White and Williams LLP
Mr. Ostrow may be contacted at ostrows@whiteandwilliams.com
Mr. Kim may be contacted at kimcj@whiteandwilliams.com
Ms. Levy may be contacted at levymp@whiteandwilliams.com
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Do Not Lose Your Mechanics Lien Right Through a Subordination Agreement
December 21, 2020 —
William L. Porter - Porter Law GroupIf you are a member of the California construction industry you might know that the right of a contractor, subcontractor or supplier to record a mechanics lien to protect the right to payment is well protected by state law. In fact, our California Constitution, article XIV, Sec. 3 specifically elevates the right to a mechanics lien to “Constitutional right”. The right to a mechanics lien is further protected by a statutory framework, including Civil Code sec. 8122 which states:
“An owner, direct contractor, or subcontractor may not, by contract or otherwise, waive, affect, or impair any other claimant’s rights under this part, whether with or without notice, and any term of a contract that purports to do so is void and unenforceable unless and until the claimant executes and delivers a waiver and release under this article.”
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Genuine Dispute Over Cause of Damage and Insureds’ Demolition Before Inspection Negate Bad Faith and Elder Abuse Claims
June 30, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Paslay v. State Farm General Ins. Co. (No. B265348, filed 6/27/16), a California appeals court found triable issues of fact regarding whether State Farm breached its contract in paying a water loss, but affirmed summary adjudication for the insurer on bad faith and elder abuse claims based on the genuine dispute doctrine.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Client Alert: Absence of a Court Reporter at a Civil Motion Hearing May Preclude Appellate Review
November 26, 2014 —
Angela S. Haskins & Blythe Golay - Haight Brown & Bonesteel LLPA California Court of Appeal expressed its concern over the due process implications of reviewing a trial court's decision that incorporated reasons that were not documented due to the absence of a court reporter. In Maxwell v. Dolezal (No. B254893, filed 11/4/14), the court cautioned that although the lack of a transcript did not preclude its review of an order sustaining a demurrer, the case was an exception because the operative complaint and demurrer were sufficient to permit effective appellate review.
The plaintiff in Maxwell, acting in pro per, had filed an action for invasion of privacy and breach of contract. The plaintiff alleged that the defendant had used his photograph and website without his consent and that he did not receive the money, food and housing in exchange for the intellectual property rights per their agreement. The defendant demurred on the grounds that the complaint was uncertain and it could not be ascertained from the pleading whether the contract was written, oral, or implied. At the hearing on the demurrer, no court reporter was present. Nonetheless, the trial court's minute order explicitly sustained the demurrer "[f]or the reasons stated in open court," without further elaborating. The trial court also denied the plaintiff further leave to amend on the ground that he was unable to articulate in open court a reasonable basis for any additional allegations that would remedy the deficiencies. The court of appeal noted that it was "profoundly concerned about the due process implications of a proceeding in which the court, aware that no record will be made, incorporates within its ruling reasons that are not documented for the litigants or the reviewing court."
Reprinted courtesy of
Angela S. Haskins, Haight Brown & Bonesteel LLP and
Blythe Golay, Haight Brown & Bonesteel LLP
Ms. Haskins may be contacted at ahaskins@hbblaw.com; Ms. Golay may be contacted at bgolay@hbblaw.com
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Defining a Property Management Agreement
June 22, 2020 —
Bremer Whyte Brown & O'Meara LLPThis article will serve as a guide to what is needed in a Property Management Agreement to avoid potential real estate disputes between owners and property managers.
What is a Property Management Agreement?
With the known volatility in the stock market since the “Dot-com Bubble” in the late 1990’s the Financial Crisis spanning 2007 to 2009, and even today’s global market crash arising from the COVID-19 Pandemic, people have looked to invest in options such as real estate that have proven to be more stable than the fluctuating and uncertain stock market.
Today, more than ever, people have recognized the benefits in real estate and diversified their investments to include the ownership of residential or commercial property. This has grown to become a lucrative source of income.
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Bremer Whyte Brown & O'Meara LLP
Bad News for Buyers: U.S. Mortgage Rates Hit Highest Since 2014
February 22, 2018 —
Prashant Gopal – BloombergShanne Sleder, a San Diego mortgage banker, recently had to break the bad news to some would-be homebuyers: Borrowing costs jumped about 6 percent since he pre-approved them a couple months ago.
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Prashant Gopal, Bloomberg