Facts

In 2002, IndyMac Bank began foreclosure on Erika Kaneko's property due to delinquency in her first trust deed payments. Hambarzdum Talaryan acquired ownership of the deed and cleared the foreclosure with a loan from Countrywide Home Loans. Later, Talaryan deeded the property back to Kaneko. The Countrywide loan went into default. Aram Arakelyan had loaned Talaryan the down payment and received payment when Countrywide's loan funded. Kenneth Park, Jin Cho, and S&H Financial Group loaned additional funds to Kaneko to clear up the defaults. Later, Countrywide foreclosed the property. Kaneko sued Arakelyan, Talaryan, Litton Loan Servicing, Park, Cho, S&H Financial, The Bank of New York, and Countrywide, alleging, among other claims, usury, violation of state mortgage statutes, and breach of fiduciary duty.

PLAINTIFF'S CONTENTIONS:
Kaneko alleged that the foreclosure caused her to lose equity in the home.

DEFENDANT'S CONTENTIONS:
Arakelyan claimed that Kaneko understood the transactions and benefited from being able to stay in the home.

Result

The court found in favor of the defense based upon the fact that the transaction was illegal and that all parties understood that fact. Plaintiffs were found not to be damaged.