Cherie Brown v. Youval Zive, Vaca Partnership, Phoenix Realty Investments
Published: Dec. 15, 2023 | Result Date: Feb. 17, 2023 | Filing Date: Oct. 16, 2012 |Case number: BC475181 Verdict – $6,175,000
Judge
Court
Los Angeles County Superior Court
Attorneys
Plaintiff
John D. Rowell
(JDR Law Inc.)
Defendant
Dana M. Cole
(Cole & Loeterman)
Zive, Vaca, Pacific Holdings, Phoenix Realty
Michael D. Kolodzi
(The Kolodzi Law Firm)
Perez
Facts
This case was brought by plaintiff Cherie Brown for fraud, fraudulent transfer and wrongful foreclosure against defendants Youval Zive, Vaca Partnership, a California General Partnership (Vaca), Pacific Holdings, and Phoenix Realty Investments, a New Mexico LLC (PRI). This fraudulent transfer and wrongful foreclosure claim arose out of the fraudulent sale of a home, by Zive and Vaca, to Brown, in 2006-2007. When Brown discovered she had been mislead by misrepresentation and failure to disclose, she filed a prior case (BC440484) which sought damages for fraud and failure to disclose material facts in connection with a wrap-around note and deed of trust which Zive had her sign in connection with the sale.
After BC440484 was filed and served, in an effort to avoid or hinder collection of any judgment in BC440484, defendants Zive and Vaca Partnership, wrongfully caused Brown's home to be auctioned off in a non-judicial foreclosure. Prior to the foreclosure sale date, in September 2011, Zive and Vaca had transferred the Deed of Trust and Note to PRI which Zive used to acquire Brown's home at the auction. Then Zive and Vaca caused PRI to file and prosecute an unlawful detainer action against Brown and remove Brown from her home.
This case was filed after the PRI unlawful detainer case was filed. At the time of this verdict, the amount owed to Brown by Zive and Vaca on the final judgment in BC440484 (tried by Cherie Brown in pro per) was over $680,000. The jury portion of this case was tried between Feb. 1, 2023 and Feb. 17, 2023. In the first phase of the jury trial, the jury unanimously found defendants Zive, Vaca, PRI and Pacific Holdings liable to Brown, and, in addition to the existing judgment in BC440484, awarded Brown $175,000 in compensatory damages jointly and severally against the liable defendants.
Contentions
PLAINTIFF'S CONTENTIONS: Plaintiff claimed that defendants wrongfully foreclosed on her home, fraudulently transferred ownership to PRI to avoid the use of the property to satisfy the anticipated debt, fraudulently had PRI transfer the property to avoid it being used to pay the anticipated debt
DEFENDANT'S CONTENTIONS: Defendants claimed they owed nothing. The results in BC440484 were wrong and the result of plaintiff and her lawyer committing fraud on the court. There was no damage as the property was worthless. The transfers were not an attempt to avoid or hinder payment of the debt. Plaintiff did not try hard enough to collect the debt.
Settlement Discussions
No substantive settlement discussions. One unsuccessful mediation.
Result
Verdict for plaintiff Cherie Brown and against Youval Zive ($3,175,000), Phoenix Realty Investments, a New Mexico LLC ($2,175,000) and Vaca Partnership, a California General Partnership ($1,175,000) and Pacific Holdings, a partnership ($175,000). Defense verdict for defendant Adi Perez on all causes of action.
Other Information
Costs remain to be awarded.
Deliberation
two days on non-punitive, partial day on punitive damages.
Poll
12-0 first phase, 12-0 second phase
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390