Perkins v. Chad Development Corp.

Opinion

TAMURA, J. Plaintiff (Perkins), a cobeneficiary of a purchase money trust deed covering certain property in Riverside County, instituted nonjudicial foreclosure proceedings and purchased the property through an agent at the foreclosure sale. The agent brought a quiet title action in which Roger Janetzky intervened attacking the validity of the foreclosure sale and claiming an interest in the property. The case ultimately went to trial as a quiet title action only as between Perkins and Janetzky. The court found in favor of Perkins and entered judgment quieting title to the property in him. Janetzky appeals from the judgment.

Janetzky advances two contentions on appeal: (1) The court erred in finding he had no interest in the property and (2) the foreclosure sale was invalid because the notice of default and election to sell had been executed by only one of the cobeneficiaries of the note and trust deed.

Viewing the evidence in light of the settled rules on appeal, the basic facts may be summarized as follows:

Golden State Escrow, Inc. (Golden State) as trustee for Chad Development Corporation (Chad) executed a $23,050 promissory note payable $230 per month in favor of R P. Wilson and Golden State, in its capacity as trustee for plaintiff Jerry Perkins, secured by a purchase money trust deed which was recorded in June 1968. A deed to the property from Golden State to Chad was recorded in October 1969. Golden State later assigned to plaintiff Perkins his beneficial interest in the note and trust deed.

Chad paid the monthly installments on the note either to Wilson or Perkins through January or February 1969. Thereafter Chad paid $115 a month to Wilson but nothing to Perkins. Following Wilson’s death in 1969, Chad continued paying $115 each month to Wilson’s widow (Mina Wilson) coexecutor of her husband’s estate, until sometime in 1971 when it ceased making all payments. By September 1971, Chad also had [648]defaulted on the first trust deed and had permitted the taxes on the property to go delinquent. Perkins conferred with Mina Wilson about joining in the execution of a notice of default and on her refusal to do so he executed, served and recorded a notice of default and election to sell. At a trustee sale held in June 1972, Perkins purchased the property through his agent, Lamar Fawcett.1

Plaintiff through Lamar Fawcett later filed the instant action to quiet title to subject property.2 Janetzky filed a complaint in intervention claiming an equitable interest in the property and attacking the validity of the foreclosure sale. At trial, Janetzky attempted to prove that he acquired an equitable interest in the property through oral agreements with the sole stockholder of Chad. However, there was no deed, contract or other written instrument transferring an interest in the property to Janetzky either from Chad or the stockholder.