LEGAL RECOVERY, LLC VS. FAY SERVICING LLC ET AL

SF Superior Court - Real Property / Housing Dept 501 - CGC24617922 - August 24, 2026 Hearing date: August 24, 2026 Case number: CGC24617922 Case title: LEGAL RECOVERY, LLC VS. FAY SERVICING LLC ET AL Case Number: | | CGC24617922 | Case Title: | | LEGAL RECOVERY, LLC VS. FAY SERVICING LLC ET AL | Court Date: | | 2026-08-24 09:30 AM | Calendar Matter: | | MOTION FOR SUMMARY JUDGMENT Or In The Alternative Summary Adjudication Of Issues | Rulings: | | On the Real Property/Housing Court Motion calendar for August 24, 2026, line 3.

Defendants' Motion for Summary Judgment or in the Alternative Summary Adjudication of Issues is GRANTED in part and DENIED in part.

Motion for Summary Judgment and Adjudication of issues 1, 8, 12, 15, 17, and 19 is DENIED. Triable issues of fact exist. See Fact 14. Additionally, moving party failed to shift its burden or show that it is entitled to a judgment as a matter of law.

E.g. (a) See Fact 27 (re: "...Status Conference Statement in the Dismissed Bankruptcy that stated: 'Debtor and the secured creditor VRMTG Asset Trust (US Bank) have been in good-faith negotiations up to today with proposals from both sides. Debtor will continue the effort...'...") is not supported by the referenced evidence, Response to RFA 27. Nothing in the response references the above quoted language. Ex.8 mentioned in RFA 27 does not appear to be attached to either the copy of the RFAs or the copy of the Responses to the RFAs. This fact is cited in support of the Motion for Summary Judgment, issue 1 (albeit separate statement incorporates "UMF Nos. ...29-20 (sic)," the Court reads it as "20-29") and issue 5.

(b) Issue 3 re: res judicata is not supported in the Points and Authorities by any discussion of the elements and res judicata does not appear to have been asserted in the Answer (Points and Authorities do not state that it is).

(c) Issue 4 re: judicial estoppel. No evidence provided that Plaintiff obtained any relief in bankruptcy court after August 8, 2026 due to its failure to disclose the potential claim. Also note, that according to the Separate Statement the only facts upon which this issue rests are 28, 29, and 39. However, Points and Authorities reference facts 16 and 27. This inconsistency defeats the purpose of the Separate Statement. Therefore Summary Adjudication as to issues 3 and 4 is also denied.

Motion is GRANTED as to issues 6 Motion is treated as a motion for Judgment on the Pleadings as to issue 2 and is granted with leave to amend to join indispensable parties. =(501/CFH)

Parties may appear in-person, telephonically or via Zoom (Video - Webinar ID: 160 560 5023; Password: 172849; or Phone Dial in: (669) 254-5252; Webinar ID: 160 560 5023; Password: 172849).

Parties who intend to appear at the hearing must give notice to opposing parties and the court promptly, but no later than 4:00 p.m. the court day before the hearing unless the tentative ruling has specified that a hearing is required.

Notice of contesting a tentative ruling shall be provided by sending an email to the court to Department501ContestTR@sftc.org with a copy to all other parties stating, without argument, the portion(s) of the tentative ruling that the party contests. A party may not argue at the hearing if the opposing party is not notified, and the opposing party does not appear. | |