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  • PENINSULA OPEN SPACE TRUST  vs.  ERNEST J. MCNABB, et al(26) Unlimited Other Real Property document preview
  • PENINSULA OPEN SPACE TRUST  vs.  ERNEST J. MCNABB, et al(26) Unlimited Other Real Property document preview
  • PENINSULA OPEN SPACE TRUST  vs.  ERNEST J. MCNABB, et al(26) Unlimited Other Real Property document preview
  • PENINSULA OPEN SPACE TRUST  vs.  ERNEST J. MCNABB, et al(26) Unlimited Other Real Property document preview
  • PENINSULA OPEN SPACE TRUST  vs.  ERNEST J. MCNABB, et al(26) Unlimited Other Real Property document preview
  • PENINSULA OPEN SPACE TRUST  vs.  ERNEST J. MCNABB, et al(26) Unlimited Other Real Property document preview
  • PENINSULA OPEN SPACE TRUST  vs.  ERNEST J. MCNABB, et al(26) Unlimited Other Real Property document preview
  • PENINSULA OPEN SPACE TRUST  vs.  ERNEST J. MCNABB, et al(26) Unlimited Other Real Property document preview
						
                                

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1 TAMARA S. GALANTER (SBN 142532) SARA A. CLARK (SBN 273600) 2 AARON M. STANTON (SBN 312530) SHUTE, MIHALY & WEINBERGER LLP 3 396 Hayes Street San Francisco, California 94102 4 Telephone: (415) 552-7272 Facsimile: (415) 552-5816 5 Galanter@smwlaw.com Clark@smwlaw.com 6 Stanton@smwlaw.com 7 Attorneys for Plaintiff PENINSULA OPEN SPACE TRUST 8 9 SUPERIOR COURT OF THE STATE OF CALIFORNIA 10 COUNTY OF SAN MATEO 11 PENINSULA OPEN SPACE TRUST, Case No. 20-CIV-02349 [Related to Case No. CIV531627] 12 Plaintiff, CASE MANAGEMENT STATEMENT OF 13 v. PLAINTIFF PENINSULA OPEN SPACE TRUST 14 REDWOOD TRUST DEED SERVICES, INC., a California Corporation; Date: September 13, 2022 15 ERNEST J. MCNABB, individually and Time: 2:00 p.m. as Trustee of the Ernest J. McNabb Dept.: 4 16 Revocable Living Trust Dated Judge: Hon. Nancy Fineman 11/19/1990; LOUIS J ARATA, 17 individually; LAURA ARATA, individually, and as sole successor 18 trustee of the John and Grace Arata 2004 Trust Executed August 11, 2004; 19 MARIE JOANNE ARATA, individually, and as the Representative of the Estate 20 of Gary J. Arata, Deceased; and DOES 1-20. 21 Defendants. 22 23 24 25 26 27 28 CASE MANAGEMENT STATEMENT OF PLAINTIFF PENINSULA OPEN SPACE TRUST Case No. 20-CIV-02349 1 Plaintiff Peninsula Open Space Trust (“POST”) submits this Case 2 Management Statement in advance of the Case Management Conference scheduled 3 for September 13, 2022. 4 SUMMARY OF THE CASE 5 Foreclosure Action 6 At the start of this action, the Arata Ranch (“property”) was jointly owned by 7 the John and Grace Arata 2004 Trust (“Arata 2004 Trust”) and by the Clarence and 8 Lillian Arata 2002 Trust. The then-trustees of the Arata 2004 Trust, Gary Arata 9 (now deceased) and Defendant Louis Arata, had obtained loans secured by deeds of 10 trust for the Arata 2004 Trust’s interest in the property. Defendants Louis Arata 11 and Laura Arata, the latter as sole successor trustee to the Arata 2004 Trust, 12 ultimately defaulted on the loans. Defendant Ernest McNabb, as beneficiary on the 13 deeds of trust, and Redwood Trust Deed Services, Inc., as trustee, took steps to hold 14 a foreclosure sale of the encumbered portion of the property. 15 POST holds a Conservation Easement over the property that, among other 16 things, prohibits the sale of the property except as a whole. POST filed this action 17 on June 3, 2020, to prevent the foreclosure sale of a portion of the Arata Ranch, 18 which POST contends would have violated the Conservation Easement, and to seek 19 other injunctive and declaratory relief. On November 5, 2020, the Court granted 20 POST’s motion for preliminary injunction to prevent the foreclosure sale pending 21 judgment in this action. 22 All Defendants in this action have been served; Defendant Louis Arata has 23 not appeared and has had a default entered against him. 24 In April 2021, Laura Arata was replaced as successor trustee of the Arata 25 2004 Trust by David Duncan. 26 Related Partition Action 27 The property is also subject to a related partition action pending before this 28 Court as Gary J. Arata et al. v. Lillian L. Arata, Case No. CIV531627. On January 2 CASE MANAGEMENT STATEMENT OF PLAINTIFF PENINSULA OPEN SPACE TRUST Case No. 20-CIV-02349 1 18, 2022, the Court confirmed the partition sale of the property as a whole to a 2 third party. POST is further informed and believes that the debts owed to 3 Defendant McNabb have been paid in full from the sale proceeds. 4 The remainder of the sale proceeds have been held by the partition referee for 5 future distribution. Earlier this year, POST submitted a claim for its costs, 6 including fees incurred in the foreclosure action pursuant to Code of Civil 7 Procedure section 874.020 (“The costs of partition include reasonable expenses, 8 including attorney’s fees, necessarily incurred by a party for the common benefit in 9 prosecuting or defending other actions . . . for the protection[ or] confirmation . . . of 10 title.”). The Court in the partition action has set a hearing to resolve the various 11 claims made against the sale proceeds on September 13, 2022, at the same time as 12 this Case Management Conference. 13 Current Status of Foreclosure Action 14 In light of the consummation of the sale and the satisfaction of the debts 15 owed to McNabb, the issues underlying the foreclosure action are moot (i.e., there is 16 no longer a threatened foreclosure sale of a portion of the property in violation of 17 the Conservation Easement). Thus, on April 15, 2022, POST filed a motion for its 18 attorneys’ fees pursuant to the Conservation Easement, Civil Code section 815.7(d), 19 and Code of Civil Procedure section 1021.5. POST’s motion has been fully briefed 20 and had been set for a hearing before Judge Foiles on October 7, 2022. However, 21 Judge Foiles vacated the October 7 hearing date in his August 23, 2022 Order 22 relating Case 20-CIV-02349 to Case CIV531627. 23 In June 2022, Duncan, as successor trustee of the Arata 2004 Trust, filed a 24 motion for leave to file a cross-claim in this action. The cross-claim would seek to 25 invalidate the Conservation Easement on the grounds that it was allegedly not 26 executed by all of the necessary parties. POST believes that the cross-claim is 27 substantively meritless and barred by judicial estoppel, equitable estoppel, the 28 statute of limitations, and laches. POST also believes that Duncan, who no longer 3 CASE MANAGEMENT STATEMENT OF PLAINTIFF PENINSULA OPEN SPACE TRUST Case No. 20-CIV-02349 1 possesses an interest in the Property, lacks standing to invalidate the Conservation 2 Easement. Finally, POST believes that Duncan lacks good cause for filing a cross- 3 claim at this late stage of the litigation. POST further asserts that, because the 4 motion for leave to file a cross-claim is patently meritless, it should not delay the 5 Court’s resolution of POST’s motion for attorneys’ fees. The motion for leave to file 6 a cross-claim had been set for a hearing before Judge Foiles on December 9, 2022. 7 Judge Foiles’s Order relating cases vacated this hearing date. POST intends to file, 8 but has not yet filed, an opposition. 9 POST requests that the Court set POST’s motion for attorneys’ fees, which 10 has been fully briefed, for the next available hearing date. 11 POST further requests that the Court set Duncan’s motion for leave to file a 12 cross-complaint for the next available hearing date that allows POST sufficient 13 time to prepare and file an opposition. 14 CAUSES OF ACTION AND DEFENSES 15 The complaint in this action alleges causes of action for (1) violation of 16 POST’s Conservation Easement pursuant to Civil Code section 815.7, and (2) 17 declaratory relief. Relief sought by Plaintiff includes declaratory relief; preliminary 18 and permanent injunctive relief; damages; costs of suit; and attorneys’ fees 19 pursuant to the Conservation Easement, Civil Code section 815.7(d), and Code of 20 Civil Procedure section 1021.5. 21 Duncan has filed a motion for leave to file a cross-complaint alleging that the 22 Conservation Easement was not executed by all necessary parties. 23 ALTERNATIVE DISPUTE RESOLUTION 24 POST does not intend to pursue ADR at this time. 25 ANTICIPATED MOTION PRACTICE 26 POST’s motion for attorneys’ fees has been fully briefed. POST requests that 27 the Court set POST’s motion for attorneys’ fees for the next available hearing date. 28 Duncan’s motion for leave to file a cross-claim has not been fully briefed. 4 CASE MANAGEMENT STATEMENT OF PLAINTIFF PENINSULA OPEN SPACE TRUST Case No. 20-CIV-02349 1 POST intends to oppose the motion and requests that the Court set the motion for 2 the next available hearing date that allows POST sufficient time to prepare and file 3 an opposition. 4 STATUS OF DISCOVERY 5 POST does not anticipate taking discovery at this time. 6 TRIAL INFORMATION 7 POST anticipates that this action will not need to go to trial and that the 8 remaining issues can be resolved in motion practice. 9 RELATED CASES 10 Peninsula Open Space Trust v. Redwood Trust Deed Services San Mateo County Superior Court 11 Case Number 20-CIV-02304 Status: Dismissed without prejudice, 11/23/2020 12 Gary J. Arata et al. v. Lillian L. Arata 13 San Mateo County Superior Court Case Number CIV531627 14 Status: Pending 15 DATED: August 29, 2022 SHUTE, MIHALY & WEINBERGER LLP 16 17 By: 18 TAMARA S. GALANTER 19 SARA A. CLARK AARON M. STANTON 20 Attorneys for Plaintiff PENINSULA OPEN 21 SPACE TRUST 22 23 24 25 26 27 28 5 CASE MANAGEMENT STATEMENT OF PLAINTIFF PENINSULA OPEN SPACE TRUST Case No. 20-CIV-02349 1 PROOF OF SERVICE 2 PENINSULA OPEN SPACE TRUST v. ERNEST J. MCNABB et al. San Mateo County Superior Court 3 Case No. 20-CIV-02349 4 At the time of service, I was over 18 years of age and not a party to this action. I am employed in the County of San Francisco, State of California. My business address is 5 396 Hayes Street, San Francisco, California 94102. 6 On August 29, 2022, I served true copies of the following document(s) described as: 7 CASE MANAGEMENT STATEMENT OF PLAINTIFF PENINSULA OPEN SPACE TRUST 8 on the parties in this action as follows: 9 SEE ATTACHED SERVICE LIST 10 BY MAIL: I enclosed the document(s) in a sealed envelope or package addressed to 11 the persons at the addresses listed in the Service List and placed the envelope for collection and mailing, following our ordinary business practices. I am readily familiar 12 with Shute, Mihaly & Weinberger LLP's practice for collecting and processing correspondence for mailing. On the same day that the correspondence is placed for 13 collection and mailing, it is deposited in the ordinary course of business with the United States Postal Service, in a sealed envelope with postage fully prepaid. 14 BY E-MAIL OR ELECTRONIC TRANSMISSION: I caused a copy of the 15 document(s) to be sent from e-mail address Larkin@smwlaw.com to the persons at the e- mail addresses listed in the Service List. I did not receive, within a reasonable time after 16 the transmission, any electronic message or other indication that the transmission was unsuccessful. 17 I declare under penalty of perjury under the laws of the State of California that the 18 foregoing is true and correct. 19 Executed on August 29, 2022, at San Francisco, California. 20 21 Patricia Larkin 22 23 24 25 26 27 28 6 CASE MANAGEMENT STATEMENT OF PLAINTIFF PENINSULA OPEN SPACE TRUST Case No. 20-CIV-02349 1 SERVICE LIST 2 PENINSULA OPEN SPACE TRUST v. ERNEST J. MCNABB et al. San Mateo County Superior Court 3 Case No. 20-CIV-02349 4 Benjamin R. Levinson Andrew Wiegel Law Office of Benjamin R. Levinson Ryan Patrick 5 4340 Stevens Creek Blvd., Suite 199 Wiegel Law Group, PLC San Jose, CA 95129 414 Gough Street, Suite 1 6 (408) 866-2999 San Francisco, CA 94102 ben@benlevinsonlaw.com (415) 552-8230 7 andrew@wiegellawgroup.com Attorneys for Redwood Trust Deed ryan@wiegellawgroup.com 8 Services, Inc. Attorneys for Ernest J. McNabb 9 Laura Arata Peter A. Kim 10 1402 W. 13th Avenue Law Office of Peter A. Kim Stillwater, OK 74074 3440 Wilshire Blvd., Suite 1208 11 larata@okstate.edu Los Angeles, CA 90010 peter@pkimlaw.com 12 Pro Per Attorneys for David R. Duncan, 13 Successor Trustee of the John & Grace Arata 2004 Trust 14 Corey M. Pollak Louis J. Arata 15 Pollak Law, LLP 53 E. Cremetti Lane 700 El Camino Real, Suite 201 Yerington, NV 89447 16 Millbrae, CA 94030 (209) 617-0446 corey@pollaklaw.com louiejarata@gmail.com 17 Attorneys for Marie Arata Pro Per 18 Christopher N. Andal COURTESY COPY 19 Andal Law Group 1748 W. Katella Avenue, Suite 200 David R. Duncan 20 Orange, CA 92867 4920 E. La Palma Avenue (714) 770-8250 Anaheim, CA 92807 21 chris@andallaw.net (714) 970-9800 david@bigtoprentals.com 22 Attorneys for David R. Duncan, Successor Trustee of the John & Grace Successor Trustee of the John & Grace 23 Arata 2004 Trust, Specially Appearing Arata 2004 Trust in San Mateo County Superior Court 24 Case No. CIV531627 25 1553106.1 26 27 28 7 CASE MANAGEMENT STATEMENT OF PLAINTIFF PENINSULA OPEN SPACE TRUST Case No. 20-CIV-02349