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Early Sullivan Prevails in Summary Judgment Victory on Behalf of Fidelity
Category: News, Results | Friday, May 31st, 2024 | Comments Off on Early Sullivan Prevails in Summary Judgment Victory on Behalf of Fidelity
An Early Sullivan team led by Diane Myint Luczon and Brett G. Moore recently emerged victorious after they filed a motion for a summary judgment, which was granted in full by the Court, in a case representing an insured home buyer.
Fidelity retained Early Sullivan to represent an insured buyer who purchased three homes. The seller’s daughter handled the sale for her mother, claiming she had a Power of Attorney, allowing her to sell the homes on her mother’s behalf. After the client purchased the homes, the seller’s son sued the buyer, claiming that the sister’s Power of Attorney was a fraud. The son alleged claims against Early Sullivan’s client of financial elder abuse, intentional misrepresentation, civil conspiracy, accounting, intentional infliction of emotional distress, quiet title, cancellation of instruments, declaratory relief, and related claims.
Following discovery, Diane and Brett filed the successful motion for summary judgment, allowing their innocent client to keep the homes he bought. The Court found that the client’s reliance on the daughter’s Power of Attorney was reasonable and in good faith, and therefore the client was immune from the claims brought against him.
9th Circuit Affirms Summary Judgment Ruling Further Cementing Early Sullivan’s Success Against HOA Title Claims
Category: News, Results | Friday, April 5th, 2024 | Comments Off on 9th Circuit Affirms Summary Judgment Ruling Further Cementing Early Sullivan’s Success Against HOA Title Claims
In another historic ruling, the 9th Circuit affirmed a summary judgment ruling obtained by Early Sullivan in favor of its client Commonwealth Land Title Insurance Company agreeing that the Plaintiff Wells Fargo Bank. N.A. could not assert any valid claims against its title insurer Commonwealth for the denial of a claim resulting from a foreclosure on a HOA superpriority lien. This (attached) memorandum opinion follows the landmark ruling issued by the Nevada Supreme Court in October 2023 finding that title insurers had no liability for these HOA superpriority lien claims under the basic insuring provisions of the title policy and the ALTA 5/CLTA 115.2 and ALTA 9/CLTA 100 endorsements. Wells Fargo had tried to find an exception to the rule laid down by the Nevada Supreme Court with respect to the ALTA 9/CLTA 100 arguing that the language in these particular CC&Rs had different language entitling them to coverage. Wells Fargo also argued that it had coverage under the CLTA 100.13 endorsement, which was not addressed by the Nevada Supreme Court. The 9th Circuit disagreed with both arguments holding that the language of the CC&Rs in this particular case did not change the outcome and that the CLTA 100.13 did not provide coverage because it only covered liens created by the CC&Rs, not by statute, and the superpriority lien was a purely statutory lien. With this most recent victory, the remaining HOA claims still being maintained by the insured lenders, should now be dismissed, ending this more than one hundred million dollar saga, with the scores of plaintiffs being paid little to nothing from the Firm’s title insurer clients.
Early Sullivan Obtains Defense Verdict On $10 Million Bad Faith Claim
Category: News, Results | Wednesday, December 13th, 2023 | Comments Off on Early Sullivan Obtains Defense Verdict On $10 Million Bad Faith Claim
An Early Sullivan Wright Gizer & McRae trial team, comprised of Scott Gizer and Rebecca Claudat obtained a defense verdict on behalf of their client First American Title Insurance Company following a two-week jury trial in Everett, Washington. Early Sullivan was brought in to serve as lead trial counsel by First American just two months prior to trial The insured Saratoga 18, LLC, owned and controlled by private equity firm, the Resmark Companies, had asserted claims against First American for breach of their title insurance policy, violation of the Washington Consumer Protection Act, and Washington’s Insurance Fair Conduct Act. The insured had submitted two claims to First American regarding a piece of vacant property it had acquired in Mulkiteo, Washington for condo development. The Insured came to learn that the property was not properly subdivided and there was an issue as to whether the selling entity had the right to sell. First American accepted the subdivision claim and elected to cure that issue, and denied the second claim as premature as no third party had challenged the conveyance. The insured ultimately sued First American alleging that First American had failed to diligently proceed with curative efforts for the subdivision and improperly denied the other claim. The insured claimed it was entitled to $3 million for the value of the property plus $6 million in treble damages, and over a $1 million in attorney’s fees and costs. First American contended that the insured had failed to cooperative with the curative efforts and that the denial of the other claim was not a true denial, but was First American’s invocation of an industry practice referred to as “watchful waiting”, whereby First American agrees to reconsider the claim if it ever becomes an actual adverse issue. The jury agreed with First American that the claim was handled properly in all respects and denied all relief requested by the insured.
Early Sullivan Prevails Before Nevada Supreme Court Likely Ending Massive HOA Litigation
Category: News, Results | Friday, October 13th, 2023 | Comments Off on Early Sullivan Prevails Before Nevada Supreme Court Likely Ending Massive HOA Litigation
An Early Sullivan appellate team of Scott E. Gizer and Sophia S. Lau secured a monumental victory on behalf of the title insurance industry when the Nevada Supreme Court agreed with them that title insurers did not agree to insure lenders against the enormous losses they suffered when numerous Homeowner’s Associations foreclosed on their assessment liens wiping out deeds of trust securing hundreds of millions of dollars.
In Nevada, HOAs are granted a super priority lien for delinquent assessments that takes priority over earlier recorded deeds of trust under NRS 116.3116. When the Nevada Supreme Court confirmed in the landmark 2014 SFR decision that these HOA foreclosures indeed wiped out a lender’s first position deed of trust, the lenders turned around and tendered thousands of claims to their title insurers claiming coverage under two particular endorsements attached to their title policies (the ALTA 5/CLTA 115 and the ALTA 9/CLTA 100). The title insurers largely denied these claims, explaining that these endorsements did not provide coverage for a variety of reasons, resulting in over 100 lawsuits being filed by the lenders in the State of Nevada.
Early Sullivan was retained by the Fidelity National Title Group brand of companies, Old Republic National Title Insurance Company, and North American Title Insurance Company to defend against these more than 100 lawsuits seeking total damages in excess of $100,000,000.00. In the case of Deutsche Bank v. Fidelity National Title Insurance Company, Early Sullivan successfully brought a motion to dismiss before Judge Adriana Escobar, who found that under the plain meaning of these endorsements, there was no coverage for Deutsche Bank’s claimed losses from the HOA’s foreclosure on its super priority lien. Deutsche Bank appealed to the Nevada Supreme Court, which decided to hear the matter En Banc in the first instance given the known gravity of the case and its effect on over 100 other cases.
In a 6-0 published decision, the Nevada Supreme Court, En Banc, agreed with Early Sullivan’s arguments and interpretations of the various statutes and endorsements at issue, and affirmed that the endorsements at issue did not provide coverage for Deutsche Bank’s losses. This decision should result in the dismissal of all other cases regarding this subject matter, and eliminates enormous potential losses to Early Sullivan’s clients. Needless to say, the title insurance industry is thrilled with the results obtained by Early Sullivan.
Early Sullivan Prevails on Behalf of Lenders in Quite Title/Fraud Claim
Category: News, Results | Monday, July 17th, 2023 | Comments Off on Early Sullivan Prevails on Behalf of Lenders in Quite Title/Fraud Claim
A trial team of Scott Gizer and Lisa Zepeda prevailed on behalf of its lender clients the Morris Boren Living Trust and Creative Investments, Inc. in an action where Christopher Jordan, the heir to a triplex property in Los Angeles, sought to invalidate the deeds of trust of Early Sullivan’s clients that totaled approximately $1.25 million. The loans at issue were taken out in 2015 by an individual named Angela Fawn Wallace who represented herself to be the trustee of Mr. Jordan’s grandmother’s trust after the grandmother passed and had prepared the trust documents. Ms. Wallace was concurrently being prosecuted on various criminal charges for taking advantage of her clients. Mr. Jordan did not learn of his rights under the trust until the criminal action against Ms. Wallace was filed in 2019. After a two-day bench trial, the trial court ruled in favor Early Sullivan’s clients finding that Ms. Wallace was the proper trustee or, alternatively, the grandmother was negligent for entrusting Ms. Wallace and failing to inform her grandson of his rights under the trust prior to her death such that Ms. Wallace was able to act as the trustee for years without challenge.
Early Sullivan Prevails At Bench Trial Recovering Client’s Stolen Funds
Category: News, Results | Wednesday, April 19th, 2023 | Comments Off on Early Sullivan Prevails At Bench Trial Recovering Client’s Stolen Funds
Early Sullivan Senior Associate Brett Moore successfully obtained a judgment in favor of client Plaintiff Cleredene Sheriff in a breach of contract and conversion matter against Defendant Pamela Azmi-Andrew. Ms. Sheriff retained Early Sullivan for the limited purpose of representing her in a bench trial to recover funds stolen by her late-daughter’s roommate.
In 2017, Colleen Mayne, Ms. Sheriff’s daughter and only child was suffering from breast cancer and had a seizure that ultimately left her in a coma. In the weeks and months following Ms. Mayne’s seizure, Defendant Azmi-Andrew volunteered to help Colleen manage her expenses. Ms. Mayne gave Ms. Azmi-Andrew her credit cards, owned jointly between Ms. Sheriff and her daughter, for that purpose. Defendant ended up using the credit cards to obtain cash advances for herself and to pay for flights, car rentals (including a Lamborghini), and other items. These charges were made without permission from Ms. Sheriff or Ms. Mayne. When Ms. Azmi-Andrew was confronted about the charges, over text messages, she agreed to repay them.
At trial, Defendant contended that the charges were gifts and that Ms. Mayne agreed to loan a large sum of money to Defendant, which she intended to repay. She claimed that she never had possession of Ms. Mayne’s credit cards. She further denied having entered into an agreement to repay the amounts she stole. Notwithstanding Defendant’s defenses and stories explaining the charges made on the cards, on cross-examination by Mr. Moore, her defenses and stories completely unraveled. Ultimately, the Judge stated that he found Defendant’s credibility “wholly lacking” and rendered a verdict in favor of our client. Ms. Sheriff will get nearly everything that was stolen from her, plus interest.
Early Sullivan Client Prevails at Bench Trial Against Adverse Possession Claim
Category: News, Results | Tuesday, April 11th, 2023 | Comments Off on Early Sullivan Client Prevails at Bench Trial Against Adverse Possession Claim
An Early Sullivan Wright Gizer & McRae LLP trial team of Scott Gizer, Padideh Zargari and Brett Moore successfully defended firm client AVTWO Homes LLC against an adverse possession claim in a bench trial before Judge Hammock in Los Angeles Superior Court.
Plaintiffs claimed to be the owners of certain real property in Los Angeles County through adverse possession based on a grant deed they received from Fannie Mae purporting to convey fee title to the property. However, Fannie Mae did not own fee title to the property, but only owned a leasehold interest in the land. Fannie Mae had made a loan to AVTWO Homes’ tenant to purchase a leasehold interest in the property and the loan was secured against that leasehold interest. The tenant’s leasehold interest was documented through a recorded 40-year Ground Lease. Fannie Mae ultimately foreclosed on its deed of trust and its borrowers’ leasehold interest, but then sold the property to Plaintiffs as if Fannie Mae owned fee title.
The Early Sullivan team presented evidence and argued that due to the recorded Ground Lease, Plaintiffs became tenants under the Ground Lease by operation of law and, thus, were precluded from claiming adverse possession under Code of Civil Procedure section 326. Plaintiffs argued that they could not be deemed tenants unless they had actual knowledge of the Ground Lease and consented to its terms. The trial court ruled in favor of AVTOW Homes finding that Plaintiffs took title subject to the Ground Lease and, thus, were in privity of estate with AVTWO Homes under the Ground Lease. Accordingly, under CCP section 326, Plaintiffs could not assert a claim for adverse possession.
Early Sullivan Obtains $4.85 Million Jury Verdict for Client in Wrongful Foreclosure Case
Category: News, Results, Results | Friday, March 31st, 2023 | Comments Off on Early Sullivan Obtains $4.85 Million Jury Verdict for Client in Wrongful Foreclosure Case
An Early Sullivan Wright Gizer & McRae trial team, comprised of Scott Gizer, Rebecca Claudat and Zachary Hansen obtained a $4.85 million jury verdict on behalf of their clients Cashera Plaza, LLC and Tony Khodadad regarding a wrongful foreclosure on vacant land in Hanford, CA.
Cashera Plaza had obtained a $1.13 million construction loan from Defendants to build a self-serve car wash and auto repair facility. The Defendants entrusted the construction funds to a fund control agent, but then secretly used those same funds for a gold refining venture without Plaintiffs’ knowledge or consent. When this gold venture failed, Defendants tried to hold Cashera Plaza responsible for the entire $1.13 million despite Cashera only receiving approximately $140,000, asserting that the fund control agent was under Cashera Plaza’s control and then trying to hide evidence of Defendants’ secret gold venture. Liability was found and the critical issue at trial became whether Plaintiffs could establish damages for lost profits since Plaintiffs’ car wash and auto repair facility was never built due to Defendants’ breaches and fraud.
The jury unanimously found that Plaintiffs had established lost profits with reasonable certainty and awarded Plaintiffs the entire amount of lost profits claimed as well as emotional distress damages for Defendants’ fraud.
Court Dismisses Trademark Infringement Allegations Against Early Sullivan Clients
Category: News, Results | Wednesday, June 15th, 2022 | Comments Off on Court Dismisses Trademark Infringement Allegations Against Early Sullivan Clients
Early Sullivan clients Sayam Sotelo and J. Frank Sotelo, represented by Bryan Sullivan and Zachary Hansen, were granted a motion to dismiss in a case brought by church organization Abundant Living Family Church (ALFC) for allegations involving trademark infringement on behalf of their company, Live Design, Inc. (Live Design).
The claims surrounded Live Design’s refusal to give up rights to the website domain name “www.alfc.church” to ALFC. ALFC had previously contacted Live Design to inquire about purchasing the domain name, and the entities entered into two contracts (signed by J. Frank Sotelo) whereby ALFC would pay a monthly fee to Live Design in exchange for the domain name. Live Design did not perform under these contracts.
Early Sullivan argued in defense of the Sotelos on the ground that their actions were on behalf of Live Design and therefore were protected by the fiduciary shield document. ALFC could not prove their burden that the defendants were the primary participants in the wrongdoing or the direct force of the infringement.
The Court ultimately granted the motion to dismiss the Sotelos and deny ALFC’s request for limited jurisdictional discovery. With the Sotelos being dismissed, the case will now continue with ALFC’s claim against Live Design Inc.
Early Sullivan Obtains Complete Defense For Sun West in Wrongful Termination, Disability Discrimination Case
Category: Results | Tuesday, May 31st, 2022 | Comments Off on Early Sullivan Obtains Complete Defense For Sun West in Wrongful Termination, Disability Discrimination Case
An Early Sullivan Wright Gizer & McRae trial team, comprised of Scott Gizer, Diane Myint Luczon, Padideh Zargari, Cameron Aronson, D’Metria Bolden, and Jackie Hosey obtained a complete defense for its client Sun West Mortgage Company, Inc. (“Sun West”) against claims asserted by a former employee for wrong termination, disability discrimination, retaliation and wage and hour violations allegedly in response to the employee’s cancer diagnosis. Specifically, the employee claimed that after he revealed his cancer diagnosis to his supervisor, he was denied leave, forced to work from the hospital, had support staff taken away and his compensation structure changed all in an effort to force him to quit. After a week-long arbitration, involving numerous fact witnesses and hundreds of exhibits, the Early Sullivan team convinced the arbitrator that the former employee was provided with all accommodations requested, that the employee elected not to go on leave so that he could maintain his full salary, that the changes in support staff were based on performance issues within his department, and that his change in compensation, and his ultimate termination, were due solely to financial issues Sun West was experiencing in 2018 and 2019. As a result, the arbitrator held that the former employee was to take nothing on his arbitration complaint, and that Sun West prevailed on all claims, entitling it to its costs.