California’s Fourth District Court of Appeal recently ruled in Miles v. Deutsche Bank National Trust Co. that a plaintiff who prevails in a wrongful foreclosure suit may recover tort damages from the defendant.
In the Miles case, the Court found that it was irrelevant at the time of the wrongful foreclosure whether the property owner had any equity in the property. Rather, it held wrongful foreclosure is a tort, and thus, plaintiff may recover any damages proximately caused by defendants’wrongdoing. To obtain such tort damages the Court concluded that the necessary elements of a wrongful foreclosure action are:
- That the defendants caused an “illegal, fraudulent, or willfully oppressive sale of real property” pursuant to a power of sale in a mortgage or deed of trust;
- That the plaintiff was “prejudiced or harmed”; and
- That the plaintiff “tendered the amount of the secured indebtedness or was excused from tendering.”
If you are facing this type of issue, you should see an attorney, let us know if you would like a consultation. Israel & Samuels LLP provides high quality, cost-effective legal services and advice for clients in the areas of business, real property, employment and general civil law and litigation.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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