Deeds Of Trust: Borrower’s Unsuccessful Complaint For Fraud, Wrongful Foreclosure, And Cancellation Of Trust Deed Fell Within Broadly Worded Deed Of Trust Provision

 

$37,632 In Fees To Lender Was Not Unreasonable.

     Eventually, after a prior appeal where borrower got some relief, the same borrower lost on claims that the lender had defrauded him and wrongfully foreclosed, justifying damages and a cancellation of the deed of trust, based on failure to timely file an amended complaint and showing no excuse for the mistake. Lender moved to recover attorney’s fees under a deed of trust fees provision, a motion granted against borrower to the tune of $37,632.

     Borrower’s appeal of the fee award was unsuccessful in Szumilas v. Wells Fargo Bank, N.A., Case No. B264438 (2d Dist., Div. 1 Jan. 27, 2017) (unpublished).

     The deed of trust fees clause did encompass borrower’s claims, all of which involved “a legal proceeding that may significantly affect Lenders’ rights in the Property.” The fact that the property was foreclosed had no consequential impact. (Jones v. Union Bank of California, 127 Cal.App.4^th 542, 547 (2005).) With respect to the amount of fees awarded, nothing showed the award was “manifestly excessive in the circumstances” (Children’s Hospital and Medical Center v. Bonta, 97 Cal.App.4^th 740, 782 (2002).)