Doran Lofts v. Dove Street Capital Lenders CA2/1

Filed 9/29/15 Doran Lofts v. Dove Street Capital Lenders CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SECOND APPELLATE DISTRICT

DIVISION ONE

DORAN LOFTS, LLC, B257200

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC476546) v.

DOVE STREET CAPITAL LENDERS, LLC,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County. Laura Anne Matz, Judge. Affirmed. Schock & Schock and John Paul Schock for Plaintiff and Appellant. Attlesey│Storm, Suzanne Shaw Storm and Christopher L. Blank for Defendant and Respondent.

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In this appeal, appellant Doran Lofts, LLC (Doran Lofts), challenges the court’s grant of summary judgment, holding that its usury claims against respondent Dove Street Capital Lenders, LLC (Dove Street), were barred by res judicata from a prior proceeding’s determination. We decide this appeal in light of Division Eight’s decision in SF Properties, LLC v. Dove Street Capital Lenders, LLC, B233994 (Nov. 26, 2012 [nonpub. opn.]), referred to as the First Appeal, and Division Two’s decision in SF Properties, LLC v. Keith B. Smith et al., B257201 (July 22, 2015 [nonpub. opn.]), referred to as the Second Appeal. We affirm. FACTUAL AND LEGAL BACKGROUND In 2005, a developer, Greg Galletly, created several limited liability corporations, including SF Properties, LLC (SF Properties) and Doran Lofts to develop real properties. In March 2005, Dove Street made a secured loan to SF Properties. At the time, Dove Street was not a licensed real estate broker or finance lender. In June 2005, Dove Street became a licensed broker and lender. After becoming licensed, Dove Street made new loans to and modified its existing loan with SF Properties. In June 2007, after Dove Street was a licensed broker and lender, it made a secured loan to Doran Lofts. In 2009, after SF Properties and Doran Lofts failed to make payments on their loans, Dove Street began foreclosure proceedings on the securing real properties. Dove Street bought SF Properties’ securing property in 2009 at a foreclosure sale; the Doran Lofts property has not yet been sold. The First Case and Appeal On January 6, 2010, Doran Lofts and SF Properties sued Dove Street in the superior court for declaratory relief, money had and received, usury, unjust enrichment, accounting, quiet title, and injunction (the First Case). (SF Properties, LLC et al. v. Dove Street Capital Lenders, LLC (Super. Ct. L.A. County, 2011, No. EC051716).) Doran Lofts and SF Properties’ main contention was that the Dove Street loans’ interest rates were usurious. At the conclusion of Doran Lofts and SF Properties’ case-in-chief,