G8 REO Fund v. Bauer Properties CA4/3

Filed 12/19/13 G8 REO Fund v. Bauer Properties CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

G8 REO FUND, LLC, G047551 Cross-complainant, Cross-defendant and Respondent. (Super. Ct. No. 30-2011-00500576)

v. OPINION

BAUER PROPERTIES, LLC,

Cross-defendant, Cross-complainant and Appellant.

Appeal from a judgment of the Superior Court of Orange County, Derek W. Hunt and David R. Chaffee, Judges. Affirmed. Law Office of Thomas J. Kostos and Thomas J. Kostos for Cross- defendant, Cross-complainant and Appellant. Payne & Fears, Daniel L. Rasmussen and Matthew K. Brown for Cross- complainant, Cross-defendant and Respondent.

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Cross-defendant, cross-complainant and appellant Bauer Properties, LLC (Bauer), appeals from a final judgment in favor of cross-complainant, cross-defendant, and respondent G8 REO Fund, LLC (G8). Bauer asserts the trial court erroneously ruled the disclosure requirements of Civil Code section 1102 (section 1102) did not apply to the real property purchase in dispute. Additionally, Bauer contends the trial court abused its discretion by denying Bauer’s motion for leave to amend its cross-complaint, and by denying Bauer’s motion to continue the trial date. None of Bauer’s arguments has merit. Consequently, we affirm the judgment. FACTS AND PROCEDURAL HISTORY Andre Bauer formed Bauer for the purpose of investing in real estate. Mr. Bauer began purchasing real estate in the late 1980’s and by the time of the transaction at issue here had bought 200 or so pieces of property, including portfolios of property and parcels sold as is, where is. A lawyer generally reviews Bauer’s purchases. Mr. Bauer knows there are risks in real estate investment and Bauer has lost money on some of its purchases. G8 is a limited liability company, formed by Evan Gentry and Peter James Mitchell, along with G8 Holdings, G8 Capital, and other related companies, to purchase portfolios of property for resale separately or in smaller groups. In June 2010 G8 entered into an “REO Pool Sale Agreement” with the Federal National Mortgage Association (Fannie Mae) to purchase a “pool” of properties, “as is.” One of the properties purchased was located in Laguna Woods and is the subject of this action (the Property). In June 2011 G8 Capital sent an e-mail to several investors offering to sell a portfolio of 62 residential properties, to be sold “as-is, where-is, through quit claim deed.” Shortly thereafter Ron Onderick made offers for the properties in an amount below the asking price. G8 Capital responded by sending its form contract to Onderick for review. The form contained a section providing the properties were being sold as is. The heading of this section was in bold, in contrast to all other section headings.