Alliance Laundry Systems v. Parker CA3

Filed 4/30/13 Alliance Laundry Systems v. Parker CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published,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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 THIRD APPELLATE DISTRICT (Amador) ----

ALLIANCE LAUNDRY SYSTEMS LLC,

Plaintiff and Respondent, C071111

v. (Super. Ct. No. 10CV7026)

JAMES UNDERHILL PARKER,

Defendant and Appellant.

Appellant James Underhill Parker appeals from the trial court‟s judgment of foreclosure and order of sale, pursuant to which respondent Alliance Laundry Systems, LLC (Alliance) foreclosed upon a piece of property located in Kirkwood (the Kirkwood property). Alliance contends this appeal has become moot because the ordered sale has been conducted and the property has been sold. We agree and dismiss the appeal. FACTS Alliance manufactures and sells commercial laundry equipment. The company also provides financing for the purchase of such equipment. One of Parker‟s companies, Centre Development LLC (Centre), operated four commercial laundries in Southern

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California. Parker was also the trustee of the James Underhill Parker Trust (the Parker Trust). From 1999 to 2008, Alliance loaned Centre several million dollars. Each loan was personally guaranteed by Parker. In April 2008, Alliance loaned Centre $445,000. This loan was personally guaranteed by Parker and the Parker Trust. The guaranty provided that the loan was to be secured by a “Short Form Deed of Trust made by [the Parker Trust] and [Parker] (as Trustors) to Stewart Title Company (as Trustee), encumbering the [Kirkwood property] as legally described in the Deed of Trust.” The same month, Parker and the Parker Trust executed and delivered to Alliance the promised deed of trust, which was recorded in the records of Amador County in May 2008. Thereafter, from June to October 2008, Centre executed and delivered to Alliance four additional promissory notes, which refinanced Centre‟s existing loans and provided the company with additional capital. Centre defaulted on these loans in August 2009. The total balance due under the promissory notes was about $4.2 million. After Alliance conducted a sale of certain personal property collateral that had been pledged by Centre to secure the four promissory notes, there remained a deficiency of about $1.9 million. In September 2009, Parker filed for Chapter 7 bankruptcy. On schedule A of his petition, Parker stated under penalty of perjury that his “real property” assets included the Kirkwood property, his interest in the property was “Fee simple,” and the amount of Alliance‟s secured claim was $1.9 million. On his schedule D, Parker stated the value of the Kirkwood property was $250,000 and again listed the amount of Alliance‟s claim as $1.9 million. Parker further stated the Kirkwood property was encumbered by both the deed of trust in favor of Alliance and a “Second Mortgage” in favor of San Diego Private Bank. Parker did not identify Alliance‟s secured claim as being contingent, unliquidated, or disputed. At the first meeting of creditors in the bankruptcy case, held in November 2009, Parker acknowledged to the Chapter 7 trustee that Alliance had a deficiency claim of about $1.9 million against Parker and the Parker Trust. The trustee filed a report of