1538 Cahuenga Partners, LLC v. Turmeko Properties, Inc.

Opinion

ROTHSCHILD, Acting P. J.

TRE Holdings, LLC (TRE), and Tremaine Fowlkes, its principal, appeal from a judgment in favor of WMC Mortgage, LLC (WMC), pursuant to a stipulated settlement (Code Civ. Proc., § 664.6).

1

We affirm.

[141]

FACTS AND PROCEEDINGS BELOW

In December 2004, plaintiff 1538 Cahuenga Partners, LLC, filed an action against defendants Turmeko Properties, Inc., WMC, and others to cancel a reconveyance and to quiet title to property on Reading Avenue in Los Angeles. (We will refer to this as the Cahuenga action.) TRE and Fowlkes were not named parties in the Cahuenga action but became parties to its settlement. In a previous action TRE had obtained a judgment lien against Turmeko, recorded a lis pendens with respect to the property, and made a claim in the Cahuenga action for money interpled in this action.

In November 2006 persons interested in the Cahuenga action, including TRE, stipulated orally before the court to “absolutely, fully, and forever release, relieve, waive, relinquish, and discharge one another individually and collectively . . . from any and all . . . hens of every kind and nature whatsoever, whether known or unknown, suspected or unsuspected . . . .” The settlement agreement contained specific provisions regarding WMC’s security interests in the Reading Avenue property. The agreement stated in relevant part: “WMC’s loans shall survive the releases set forth herein. Those WMC loans are secured by a first and second deed of trust against the property. Those deeds of trust will likewise survive these releases.” “[A]s further and additional consideration to WMC, the parties ... on behalf of themselves, individually and collectively, and their . . . stockholders, officers, directors, . . . employees, . . . representatives, assigns, and successors acknowledge and stipulate that the WMC first [trust deed], which secures the WMC first note currently in default with a pay-off amount in the sum of $568,053.62 and the WMC second [trust deed] which secures the WMC second note currently in default with a pay-off amount in the sum of $222,747.11 are senior priority liens in and to the subject realty, which are superior to any and all lien interests and/or encumbrances in and to the subject realty that are held, owned, and/or claimed by . . . TRE Holdings . . . .”