Case Number: BC550144 Hearing Date: February 14, 2020 Dept: NCD

TENTATIVE RULING

Calendar: 20

Date: 2/14/20 Trial Date: None Set

Case No: BC 550144

Case Name: Yegiyants, et al. v. Bardakjian, et al

MOTION TO SET ASIDE TRUSTEE’S SALE

Moving Party: Plaintiffs Arman Yegiyants and 10415 Commerce, LLC

Responding Party: Defendants Hagop Bardakjian and Hratchia Bardakjian

Defendants 703 E. Angeleno, LLC, 707 E. Angeleno, LLC,

and Commercial Funding, LLC

RELIEF REQUESTED:

Order Setting Aside Trustee’s Sales

In the Alternative, Further Preliminary Injunction

RELEVANT FACTS:

This is an action for fraudulent transfer brought by plaintiffs Arman Yegiyants and 10415 Commerce, LLC, alleging that defendant Hratchia Bardakjian has wrongfully become record owner of real property belonging to plaintiffs, and has wrongfully transferred it to his brother, defendant Hagop Bardakjian, in order to avoid a monetary claim by plaintiffs.

The matter has been deemed related to a case brought by plaintiff 10415 Commerce, LLC, BC 469194, alleging that defendants Hratchia Bardakjian, Polosajian and unnamed co-conspirators Allison Roberts and Overland Properties conspired to fraudulently convey and deprive Commerce of its primary assets, including real properties and money, which Bardakjian improperly conveyed to himself and then conspired with the remaining defendants to keep from Commerce.

The 10415 Commerce action was ordered to arbitration between Commerce and Hratchia Bardakjian. On August 3, 2017, a judgment confirming the arbitration award was entered. That judgment ordered the transfer of certain properties, including 703 E. Angelo and 707 E. Angelo to 10415 Commerce. That judgment was appealed.

On April 26, 2019, the court in this action granted a motion for preliminary injunction and ordered that defendants Hagop Bardakjian, Hratchia Bardakjian, S.B.S. Trust Deed Network, were restrained from “directly or indirectly, or through their agents, employees, servants, business entities or any other persons,” from participating in a trustees or foreclosure sale of the E. Angelo properties. The court ordered a bond of $2,500. On May 1, 2019, plaintiffs deposited with the court $2,500 cash in lieu of bond.

In the other matter, on May 28, 2019, the court of appeal issued its opinion affirming the trial court’s judgment and issued remittitur on July 30, 2019.

On September 6, 2019, the court heard an ex parte application brought by plaintiffs for an order cancelling a trustee’s sale conducted in violation of the court’s April 26, 2019 preliminary injunction. The court granted the motion to the extent it sought a temporary restraining order and issued an order “enjoining the defendants and all persona acting by, through or on their behalf, from any further transfers sales, liens or encumbrances against the Angeleno Properties,” and set the OSC re preliminary injunction for hearing. The minute order states, “All parties encompasses Hagop Bardakjian, Hratchia Bardakjian, SBS Trust Deed Network, 703 E. Angeleno LLC, 707 E. Angeleno, LLC and John David.”

On October 4, 2019, the court granted a motion by plaintiffs for leave to file a Second Amended Complaint to allege recently occurring facts and add new parties, which was granted. The file shows the SAC was filed on October 4, 2019, and various new defendants have been added via Amendment to Complaint filings.

On October 25, 2019, the OSC re preliminary injunction and motion to set aside the trustee’s sale were heard. The court published its tentative ruling and the minute order which show that the court had questions on certain issues and requested further briefing on these issues. The court eventually continued this hearing on plaintiff’s Motion for Preliminary Injunction to this date, February 14, 2020 with TRO entered April 26, 2019 as modified on September 6, 2019 remaining in place until February 14, 2020.

The minute order of October 25, 2019 shows that the hearing was continued to December 13, 2019.

On December 5, 2019, defendant Hratchia Bardakjian brought an ex parte application to continue the hearing date, which was granted, and the matter continued to this date. The TRO was ordered to remain in full effect until this date.

On December 19, 2019, the court heard an ex parte application filed by plaintiffs to add Commercial Funding, LLC to the exiting TRO, which was granted.

On February 7, 2020, plaintiffs brought an ex parte application for an order allowing plaintiffs to file a third amended complaint pursuant to the stipulation of the parties, which was granted.

ANALYSIS:

Plaintiffs bring this motion to set aside a Trustee’s Sale and the recorded documents emanating from that sale, but do not provide legal authority pursuant to which the court can do so on a simple noticed motion.

Plaintiffs appear to seek in the alternative that the court extend the preliminary injunction to the new parties who engaged in the conduct which resulted in the transfer of title to the property so that title is no longer in Bardakjian. It appears from the documents submitted that on September 10, 2018, Assignments of Deeds of Trust were recorded against the properties, executed by John David, as attorney in fact for Hagop Bardakjian, assigning and transferring the properties to Wyoming domestic limited liability companies, 707 E. Angeleno LLC and 707 E. Angeleno, LLC, notices of default were recorded on January 9, 2019 by SBS Trust Deed Network, notices of trustee’s sale were recorded on July 16, 2019, setting the sales for August 9, 2019, and on August 20, 2019, Trustee’s deeds upon sale were recorded granting the property to the Wyoming entities.

The court hereby extends the preliminary injunction to apply to the Wyoming entities, as well as to Commercial Funding, LLC, who have now appeared in this matter. It will also be discussed at the hearing if there are other parties which have been served and appeared and have been formally made parties subject to the preliminary injunction, including John M. David and Jim Dawood. Plaintiffs have named Oscar Choi, but a dismissal of that party was requested and entered on February 5, 2020. The opposition filed by the Wyoming entities and Commercial Funding does not appear to object to the entry of an order maintaining the status quo. The opposition seems to argue that the motion is moot because on September 24, 2019, grant deeds were executed by John M. David as manager of the Wyoming corporations in favor of plaintiff 10415 Commerce. [RFJN, Exs. 5, 6]. It would appear that title to the properties is now in conformity with the August 3, 2017 judgment entered in the other case by way of confirmation of the arbitration award in which the arbitrator ordered the transfer of the properties to 10415 Commerce.

In any case, the court has already made a finding in this case that injunctive relief is appropriate in this matter, as plaintiffs have established a probability of prevailing on their claim that defendants are engaging in fraudulent transfer of the subject properties, and that the burden to defendants of refraining from further transfer of the properties is outweighed by the harm to plaintiffs if the properties are subject to further transfer. The injunction is extended to the new parties to the matter. The court orders plaintiff’s counsel to prepare a comprehensive preliminary injunction order which includes any and all new defendants, even those potential defendants who are not named as defendants but will be added as defendants by plaintiff in the near future.

RULING:

Motion for an Order Setting Aside the Trustee’s Sales is DENIED in part and GRANTED in part.

Request for Order setting aside the trustee’s sales is DENIED WITHOUT PREJUDICE to such relief being awarded after trial or other proceedings.

Request for extension of preliminary injunction to new parties is GRANTED.

Good cause appearing, the court orders that its preliminary injunction of April 26, 2019 is extended to all parties to this litigation, and specifically includes defendants 703 E. Angeleno, LLC, 707 E. Angeleno, LLC, Commercial Funding, LLC, John M. David, and Jim Dawood.

Pending trial, defendants HAGOP BARKAKJIAN, HRATCHIA BARDAKJIAN, S.B.S. TRUST DEED NETWORK, 703 E. ANGELENO, LLC, 707 E. ANGELENO, LLC, COMMERCIAL FUNDING, LLC, JOHN M. DAVID and JIM DAWOOD are jointly and severally restrained and enjoined from directly or indirectly, or through their agents, employees, servants, business entities or any other persons:

A. Conducting, engaging in, or otherwise participating in a trustee’s sale of the real property described as (i) 703 E. Angeleno, Burbank, California (703 ANGELENO) and (ii) 707 E. Angeleno, Burbank, California (707 ANGELENO) (collectively, the ANGELENO PROPERTIES).

B. Cash deposited by plaintiffs on May 1, 2019 to be maintained by the court in lieu of bond.