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This case was last updated from Los Angeles County Superior Courts on 05/31/2021 at 11:12:37 (UTC).

QUALITY LOAN SERVICE CORP. VS ALL CLAIMANTS TO SURPLUS FUNDS

Case Summary

On 03/30/2020 QUALITY LOAN SERVICE CORP filed an Other lawsuit against ALL CLAIMANTS TO SURPLUS FUNDS. This case was filed in Los Angeles County Superior Courts, Compton Courthouse located in Los Angeles, California. The Judges overseeing this case are MAURICE A. LEITER and KRISTIN S. ESCALANTE. The case status is Not Classified By Court.

Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    *******0066

  • Filing Date:

    03/30/2020

  • Case Status:

    Not Classified By Court

  • Case Type:

    Other

  • Court:

    Los Angeles County Superior Courts

  • Courthouse:

    Compton Courthouse

  • County, State:

    Los Angeles, California

Judge Details

Presiding Judges

MAURICE A. LEITER

KRISTIN S. ESCALANTE

 

Party Details

Petitioner

QUALITY LOAN SERVICE CORP.

Claimants

CREATIVE INVESTMENT GROUP INC.

MOHANDAS SHAJI

SHAJI LEKHA

Respondent

ALL CLAIMANTS TO SURPLUS FUNDS

Attorney/Law Firm Details

Petitioner Attorney

PODMENIK MATTHEW

Claimant Attorneys

NUSSBAUM LANE MICHAEL

GRIFFIN DAVID RYAN

 

Court Documents

Certificate of Mailing for - CERTIFICATE OF MAILING FOR (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...) OF 03/04/2021

3/4/2021: Certificate of Mailing for - CERTIFICATE OF MAILING FOR (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...) OF 03/04/2021

Minute Order - MINUTE ORDER (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...)

3/4/2021: Minute Order - MINUTE ORDER (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...)

Notice - NOTICE OF CASE REASSIGNMENT AND OF ORDER FOR PLAINTIFF TO GIVE NOTICE

3/8/2021: Notice - NOTICE OF CASE REASSIGNMENT AND OF ORDER FOR PLAINTIFF TO GIVE NOTICE

RETURNED MAIL

3/15/2021: RETURNED MAIL

Minute Order - MINUTE ORDER (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...)

4/20/2021: Minute Order - MINUTE ORDER (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...)

Minute Order - MINUTE ORDER (NON-APPEARANCE CASE REVIEW RE: PROPOSED ORDER)

5/4/2021: Minute Order - MINUTE ORDER (NON-APPEARANCE CASE REVIEW RE: PROPOSED ORDER)

Notice of Case Reassignment and Order for Plaintiff to Give Notice

2/10/2021: Notice of Case Reassignment and Order for Plaintiff to Give Notice

Minute Order - MINUTE ORDER (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...)

12/8/2020: Minute Order - MINUTE ORDER (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...)

Petition and Declaration Regarding Unresolved Claims and Deposit of Undistributed Surplus Proceeds - PETITION AND DECLARATION REGARDING UNRESOLVED CLAIMS AND DEPOSIT OF UNDISTRIBUTED SURPLUS PROCEEDS

11/10/2020: Petition and Declaration Regarding Unresolved Claims and Deposit of Undistributed Surplus Proceeds - PETITION AND DECLARATION REGARDING UNRESOLVED CLAIMS AND DEPOSIT OF UNDISTRIBUTED SURPLUS PROCEEDS

Minute Order - MINUTE ORDER (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...)

9/1/2020: Minute Order - MINUTE ORDER (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...)

Certificate of Mailing for - CERTIFICATE OF MAILING FOR (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...) OF 09/01/2020

9/1/2020: Certificate of Mailing for - CERTIFICATE OF MAILING FOR (HEARING - OTHER DISTRIBUTION OF SURPLUS FUNDS ON DEPOSIT PURS...) OF 09/01/2020

Certificate of Mailing for - CERTIFICATE OF MAILING FOR [MINUTE ORDER (NON-APPEARANCE CASE REVIEW RE: CONFIRMATION OF DEPOSIT OF SUR...)]

6/24/2020: Certificate of Mailing for - CERTIFICATE OF MAILING FOR [MINUTE ORDER (NON-APPEARANCE CASE REVIEW RE: CONFIRMATION OF DEPOSIT OF SUR...)]

Notice - NOTICE OF ENTRY OF ORDER

5/28/2020: Notice - NOTICE OF ENTRY OF ORDER

Notice - NOTICE OF CASE ASSIGNMENT WITH PROOF OF SERVICE

4/20/2020: Notice - NOTICE OF CASE ASSIGNMENT WITH PROOF OF SERVICE

Order - ORDER TO DEPOSIT SURPLUS FUNDS

4/17/2020: Order - ORDER TO DEPOSIT SURPLUS FUNDS

Certificate of Mailing for - CERTIFICATE OF MAILING FOR (COURT ORDER) OF 04/17/2020

4/17/2020: Certificate of Mailing for - CERTIFICATE OF MAILING FOR (COURT ORDER) OF 04/17/2020

Notice of Case Assignment - Unlimited Civil Case

3/30/2020: Notice of Case Assignment - Unlimited Civil Case

Civil Case Cover Sheet

3/30/2020: Civil Case Cover Sheet

23 More Documents Available

 

Docket Entries

  • 05/14/2021
  • Docketat 08:30 AM in Department A, Kristin S. Escalante, Presiding; Non-Appearance Case Review (reproposed order) - Not Held - Vacated by Court

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  • 05/11/2021
  • DocketOrder Granting Distribution of Surplus Fundsd in Amount of $52,979.54 to Shaji Mohandas and Lekha Shaji; Filed by Shaji Mohandas (Claimant); Lekha Shaji (Claimant)

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  • 05/04/2021
  • Docketat 08:30 AM in Department A, Kristin S. Escalante, Presiding; Non-Appearance Case Review (reproposed order) - Held - Continued

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  • 05/04/2021
  • DocketCertificate of Mailing for ((Non-Appearance Case Review re: proposed order) of 05/04/2021); Filed by Clerk

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  • 05/04/2021
  • DocketMinute Order ( (Non-Appearance Case Review re: proposed order)); Filed by Clerk

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  • 04/20/2021
  • Docketat 08:30 AM in Department A, Kristin S. Escalante, Presiding; Hearing - Other (Distribution of Surplus Funds on Deposit Pursuant to Civil Code Section 2924j(d)) - Held

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  • 04/20/2021
  • DocketMinute Order ( (Hearing - Other Distribution of Surplus Funds on Deposit Purs...)); Filed by Clerk

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  • 03/15/2021
  • DocketRETURNED MAIL; Filed by Clerk

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  • 03/08/2021
  • DocketNotice (of Case Reassignment and of Order for Plaintiff to give notice); Filed by Quality Loan Service Corp. (Petitioner)

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  • 03/04/2021
  • Docketat 08:30 AM in Department A, Kristin S. Escalante, Presiding; Hearing - Other (Distribution of Surplus Funds on Deposit Pursuant to Civil Code Section 2924j(d)) - Held - Continued

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27 More Docket Entries
  • 05/28/2020
  • DocketNotice (of Entry of Order to Deposit Surplus Funds Pursuant to Cal. Civ. Code 2924j(c)&(d)); Filed by Quality Loan Service Corp. (Petitioner)

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  • 04/21/2020
  • DocketNotice (of Claim for Surplus Funds); Filed by Creative Investment Group, Inc. (Claimant)

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  • 04/20/2020
  • DocketNotice ( of Case Assignment with Proof of Service); Filed by Quality Loan Service Corp. (Petitioner)

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  • 04/17/2020
  • Docketat 4:09 PM in Department A, Kristin S. Escalante, Presiding; Court Order

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  • 04/17/2020
  • DocketMinute Order ( (Court Order)); Filed by Clerk

    Read MoreRead Less
  • 04/17/2020
  • DocketCertificate of Mailing for ((Court Order) of 04/17/2020); Filed by Clerk

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  • 03/30/2020
  • DocketNotice of Case Assignment - Unlimited Civil Case; Filed by Clerk

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  • 03/30/2020
  • DocketCivil Case Cover Sheet; Filed by Quality Loan Service Corp. (Petitioner)

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  • 03/30/2020
  • DocketPetition and Declaration Regarding Unresolved Claims and Deposit of Undistributed Surplus Proceeds of Trustee's Sale; Filed by Quality Loan Service Corp. (Petitioner)

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  • 03/30/2020
  • DocketOrder (to Deposit Surplus Funds); Filed by Quality Loan Service Corp. (Petitioner)

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Tentative Rulings

Case Number: 20CMCP00066    Hearing Date: March 04, 2021    Dept: A

20CMCP00066 Quality Loan Service, Corp. v. All Claimants to Surplus Funds After Trustees Sale of Real Property Located at 1218 Desford Street, Torrance, CA 90502-1852

Hearing to Determine Distribution of Surplus Funds per Civ Code § 2924j(d) is CONTINUED TO 4/21/2021 at 8:30 a.m. in Department A, Compton Courthouse.

On 3/30/20, Petitioner, Quality Loan Service Corp., filed a Petition and Declaration Regarding Unresolved Claims and Deposit of Undistributed Surplus Proceeds of Trustee’s Sale with respect to the property located at 1218 Desford Street, Torrance, CA. At the time foreclosure, Shaji Mohandas and Lehka Shaji were owners (“Owners”). Petition, ¶ 3.

On 4/17/20, the court granted the Petition and ordered Petitioner to deposit the sum of $52,979.54 into the court’s trust account. Petitioner was also discharged of any further responsibility.

On 4/21/20, Claimant, Creative Investment Group, Inc., lodged its claim for $62,094.77 from the surplus funds. On 6/24/20, the court stated that all claimants shall file and serve their claim to the surplus funds at least 15 days before the hearing pursuant to Civil Code § 2924j(d). The hearing was scheduled for 9/1/20. The hearing was later continued to 11/13/20, and then to 12/8/20. On that date, counsel for Creative Inc., indicated it was not pursuing its claim. The Court required counsel to file a notice that it was withdrawing the claim. The Court’s file does not reflect that Creative Inc. filed a notice withdrawing its claim.

As of the last hearing on 1/21/21, the Court noted a dispute as to whether there was a previous owner of the property, Simon Doh. The Owners contended that the deed bearing Simon Doh’s name was fraudulent. The Court found that the Owners had not filed a proof of service reflecting that Simon Doh had proper notice that the Court was considering distribution of surplus funds. The Court continued the hearing again requiring the Owners to give proper notice to Mr. Doh including the continued date of the hearing.

Owners did not give notice until 2/17/21. Owners served a copy of the Petition and declaration for deposit of surplus funds, Claimants’ 11/30/20 claim to the funds, and the Court’s orders of 12/8/20 and 1/21/21.

Owners did not give Mr. Doh sufficient notice to file a claim. The statute requires the Court to consider all claims “filed at least 15 days before the date on which the hearing is scheduled by the Court … .” Civ Code § 2924j(b). Owners gave notice on the 15th day before the hearing, when all claims were due to be filed.

Therefore, the Court orders this hearing continued to Tuesday, 4/20/21 at 8:30 a.m. in Department A of the South Central District, Compton. The clerk is ordered to give notice of this minute order on Mr. Soh and the Owners, as well as Creative Investment Group, Inc. Creative Group, Inc. is ordered to file a formal notice withdrawing its claim to the surplus funds forthwith consistent with its representations to the Court. Mr. Soh is directed to file a claim for distribution of the surplus funds 15 days before the continued hearing (by 4/5/21) if he intends to make a claim for the surplus funds.

Clerk is ordered to give notice.

Case Number: 20CMCP00066    Hearing Date: January 21, 2021    Dept: A

# 2. Quality Loan Service Corp. v. All Claimants of Surplus Funds (In re: 1218 Desford Street, Torrance, CA 90502-1852)

Case No.: 20CMCP00066

Matter on calendar for: Hearing on disbursement of funds

Tentative ruling:

  1. Background

    Petitioner Quality Loan Service Corporation (“QLS”) conducted a trustee’s sale for 1218 Desford Street, Torrance, CA 90502. The property sold for $517,000, of which $217,139.63 went to the foreclosing creditor. QLS satisfied two junior liens owed to Citibank, N.A. and Creative Investment Group totaling $122,601.80. QLS then sought to disburse funds to the owners of the property before the foreclosure by disbursing $110,279.06 to Shaji Mohandas and Lekha Shaji, leaving $52,979.54 in funds after fees.

    There is a dispute as to whether there is an additional previous owner. A deed recorded just before the foreclosure sale includes Simon Doh (“Doh”), but claimant Shaji Mohandas (“Mohandas”) claims that deed is fraudulent. If the deed is fraudulent, then the remaining funds would be owed to Mohandas and Lekha Shaji (“Lekha”)[1], instead of Doh.

  2. Standard

Once a trustee’s sale is concluded and there are surplus funds, the trustee has 30 days from the execution of the trustee’s deed to send written notice to individuals with a recorded interest in the real property prior to the trustee’s sale. (Civ. Code, § 2924j(a).) This allows those individuals to make a claim to the surplus funds. (Civ. Code, § 2924j(a)(3).) Claimants have 30 days to make a claim. ((Civ. Code, § 2924j(a)(4).) Once claims have been received, the trustee must exercise due diligence to determine the priority of the claims. (Civ. Code, § 2924j(b).) If there is no dispute as to the priority, the trustee pays out the funds within 30 after the conclusion of the notice period. (Civ. Code, § 2924j(b).) If the trustee fails to determine priority or there is a dispute, the trustee must deposit the funds with the court pursuant to Civil Code § 2924j(c).

The Court determines priority according to Civil Code § 2924k(a): (1) the costs and expenses incurred in the selling of the property, (2) payment of any obligations secured by the deed or mortgage, (3) to satisfy any outstanding obligations encumbering the property, and (4) to the vested owner at the record time of the trustee’s sale. (Civ. Code, § 2924k(a)(1–4).)

  1. Analysis

Mohandas and Lekha filed a joint claim pursuant to Civil Code § 2924j(d). They proffer evidence that they were the record owner of the Property before the trustee sale, including with their claim a letter documenting an offer to make a real estate loan secured by a first trust deed against the subject property. However, this evidence and their submitted claim does not satisfactorily address that the recorded grant deed shows that the property was owned by Mohandas, Lekha, and Doh as joint tenants. (See Petition Attachment 11B at Ex. B.) Mohandas and Lekha claim that grant deed is fraudulent and submitted a complaint about the deed, but that complaint refers to a different grant deed than the one recorded before the foreclosure sale. (See Petition Attachment 11B.) Nevertheless, Mohandas and Lekha have an ownership interest in the property before the sale; they are at least part of “the vested owner of record at the time of the trustee’s sale” and are next in order of priority. (See Civil Code section 2924k, subdivision (a)(4).)

But Mohandas and Lekha’s claim and supporting declarations do not explain why Doh is not entitled to some of the surplus funds. Doh has not objected to their claim (including the timeliness) or otherwise asserted his own priority to the surplus funds.

At a hearing on December 8, 2020, the Court noted that the file does not contain a proof of service showing that Doh received Mohandas and Lekha’s claim or supporting declarations. Accordingly, the Court continued this hearing to January 21, 2021, and ordered claimants Mohandas and Lekha to provide notice on Doh of their claim, any papers filed in support of their claim, and the Court’s December 8, 2020 order including the continued hearing date.

Mohandas and Lekha subsequently asked for permission to serve “John Does” by publication. The Court rejected that request. As of today, Mohandas and Lekha have not filed any proof of service reflecting that Doh has proper notice, as ordered by the Court on December 8, 2020.

The Court again continues this hearing, and again orders Mohandas and Lekha to provide notice to Doh of their claim, any papers filed in support of their claim, and the Court’s order including the continued hearing date.

Should Mohandas and Lekha provide proper proof of service at the hearing, and in the absence of any appearance by Doh, the Court will grant their claim, and order the distribution of $52,970.54 evenly between them, with Doh receiving nothing due to his failure to present a claim or to object to Mohandas’s and Lekha’s claim.

  1. Ruling

    The Court continues the hearing.

    Next dates:

    Notice:


[1] The Court refers to this claimant by first name because the last name is the same as the first name of another claimant. No disrespect is intended.

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