Facts

Saehan Bank issued a $2 million commercial loan to Marina De La Luz Muralles in 2008, secured by property owned by Muralles' business, Marina's Building Materials Corp. A notice of default and election to sell the property was recorded by Chicago Title Co. in July 2009, and the property was sold in November 2010 to Max Capital Investment LLC. Parker Foreclosure services LLC was appointed as foreclosure trustee by Max Capital.

Parker recorded a notice of trustee's sale in December 2010, sending Muralles a demand payoff letter for $75,657. Muralles subsequently filed for bankruptcy.

PLAINTIFF'S CONTENTIONS:
Muralles filed suit against Max Capital, Parker, and its employee, Daniel Park, alleging wrongful foreclosure. She further contended the notice of default for $1.9 million was false, and she was only delinquent for $23,000 at the time of foreclosure.

DEFENDANT'S CONTENTIONS:
Max Capital separately filed suit against Muralles, alleging unlawful detainer. The defense contended that no prejudice occurred as a result of the foreclosure process, and that Muralles was aware of the loan default.

Settlement Discussions

There was a demand of $600,000 and an offer of $300,000.

Damages

Muralles sought damages of $329,000, as well as cancellation of the deed of sale and restoration of title.

Result

Muralles dismissed Park as a defendant prior to ruling. The court rendered a verdict against Max Capital, finding the foreclosure sale void and awarding Muralles $329,000 in damages.