Opinion

Monterey S.P. Partnership v. W. L. Bangham, Inc.

  • 49 Cal. 3d 454
  • 261 Cal. Rptr. 587
  • 777 P.2d 623
  • 1989 Cal. LEXIS 1600
Court
California Supreme Court
Filed
Aug 24, 1989
Status
Published
Author
Broussard
On the bench
Lucas, Mosk, Broussard
Cited by
52 cases
Authority
More cited than 5.1%

overruling Johnson v. Curley 83 Cal.App. 627, 257 P. 163 (1927), which held that beneficiaries under a deed of trust were not necessary parties to an action to have that deed declared void for fraud

How later courts described this case

  • overruling Johnson v. Curley 83 Cal.App. 627, 257 P. 163 (1927), which held that beneficiaries under a deed of trust were not necessary parties to an action to have that deed declared void for fraud
  • “The similarities between a trustee of an express trust and a trustee under a deed of trust end with the name .... the trustee under a deed of trust does not have a true trustee’s interest in, and control over, the trust property. Nor is it bound by the fiduciary duties that characterize a true trustee.”
  • rejecting that a deed of trust conveyed true title to the trustee
  • all persons with an interest in the subject real property at the time suit is brought to enforce a mechanic’s lien on that property are necessary parties

Written by the judges who cited it.

The opinion

BROUSSARD, J.

I concur in the judgment and in the court’s opinion insofar as it holds that the default judgment in the foreclosure proceeding was not binding on the beneficiaries of the deed of trust. The Court of Appeal had held that the default judgment was binding, and I concur in the reversal. We need not go any further in this case.

I do not concur in the statement on page 459 of the majority opinion and footnote 3 appended to it which go further and conclude that the lienor forfeited its rights. Issues of potential other equities were not addressed in the briefs filed in this court. The case cited in the footnote, Riley v. Peters (1961) 194 Cal.App.2d 296 [ 15 Cal.Rptr. 41 ], is not necessarily controlling. In that case the mechanic’s lienor failed to name the parties to the trust deed in the foreclosure action within 90 days of the filing of the lien as required by Code of Civil Procedure section 1198.1. In the instant case, the lienor commenced its action within the 90-day period and named the beneficiaries. The code section does not appear applicable.

We should limit our decision to the issue that was briefed to us and not reach out for additional matters not necessary to our decision.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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