The following is our summary of the Supreme Court’s actions on petitions for review in civil cases from the court’s conference on Wednesday, August 27, 2014. The summary includes those civil cases in which (1) review has been granted, (2) review has been denied but one or more justices has voted for review, or (3) the Court has ordered depublished an opinion of the Court of Appeal.
Review Granted
Yvanova v. New Century Mortgage Corporation, S218973 – Review Granted – August 27, 2010 [Justice Chin was recused]
The court limited briefing and argument to this issue: in an action for wrongful foreclosure on a deed of trust securing a home loan, does the borrower have standing to challenge an assignment of the note and deed of trust on the basis of defects allegedly rendering the assignment void?
Plaintiff executed a promissory note secured by a deed of trust on her residence. Later, when plaintiff had an unpaid balance approximating $538,000, the trustee executed a notice of sale and subsequently sold plaintiff’s property. Plaintiff filed a quite title action, alleging that a predecessor trustee never possessed the deed of trust and all subsequent transfers were therefore invalid. The trustee demurred on the ground that plaintiff lacked standing to seek quiet title because she defaulted on the loan and failed to tender the amount due. The trial court sustained defendant’s demurrer and dismissed plaintiff’s complaint without leave to amend. The Court of Appeal, Second District, Division One, held in a published opinion, Yvanova v. New Century Mortgage Corporation (2014) 226 Cal.App.4th 495, that plaintiff was not permitted to quiet title because she failed to repay the amount due on the promissory note and because any assignment of her note did not change her obligations.
Please Continue to Hold
Caron v. Mercedes-Benz Financial Services, S205263 – Review Granted & Held – October 24, 2012; Deferred Briefing Continued – August 27, 2014
Flores v. West Covina Auto Group, LLC, S208716 – Review Granted & Held – April 10, 2013; Deferred Briefing Continued – August 27, 2014
In light of its decision in Iskanian v. CLS Transportation Los Angeles, LLC, the court dismissed review in one case and transferred three others back to the Courts of Appeal for reconsideration. As in those four cases, review had been granted in Caron and Flores and action had been deferred pending a decision in Iskanian. Instead of dismissing review or transferring the matters, however, the court has ordered that further action in Caron and Flores will now be deferred pending the decision in Sanchez v. Valencia Holding Co. LLC, S199119, which includes the following issue: Does the Federal Arbitration Act (9 U.S.C. § 2), as interpreted in AT&T Mobility LLC v. Concepcion (2011) 563 U. S. 321 [131 S.Ct. 1740], preempt state law rules invalidating mandatory arbitration provisions in a consumer contract as procedurally and substantively unconscionable?
Review Denied (with dissenting justices)
None.
Depublished
None.
