Facts

Celtic Bank Corp. sued Oceanside at Vine LLC, real estate broker Mark Malan, and Oceanside III LLC regarding a commercial and business loan.

PLAINTIFF'S CONTENTIONS:
Celtic alleged that around January 2007, Oceanside at Vine applied for a commercial and business loan from Celtic in the amount of $825,000. Oceanside at Vine offered four condominiums as collateral for the loan. Malan agreed to be personally liable for all defaults by Oceanside at Vine. All loan obligations matured and were due and payable but no payments had been made since Jan. 15, 2013. Plaintiff claimed Oceanside at Vine transferred and conveyed title to the property to Oceanside III without Celtic's consent and in breach of the loan documents.

Celtic asserted claims for judicial foreclosure, specific performance/appointment of receiver, injunctive relief, accounting, and breach of guaranty agreement.

DEFENDANTS' CONTENTIONS:
Defendants admitted many of the allegations in Celtic's complaint, asserted various affirmative defenses, and filed a cross-claim alleging that Celtic wrongfully offered loans in the state without having the proper licensing for an out-of-state lender. The cross-claim alleged violation of California Corporation Code Section 191, breach of fiduciary duty, fraudulent inducement, negligent misrepresentation, violation of Business and Professions Code Section 17200, and declaratory relief.

Result

As the two remaining parties were Celtic and Malan, the court entered judgment in favor of Celtic and against Malan for $700,000.

Other Information

FILING DATE: May 3, 2013.