Chan

BACKGROUND

Chan‟s operative third amended complaint for damages alleged causes of action for breach of implied contract, breach of oral contract, and declaratory relief against Lo and defendant Oliver Law.1 Chan alleged that she owned property in Temple City, and in 2005, Law held himself out as a real estate broker who could obtain a $100,000 loan for Chan. The next month, Law said his brother Lo would make the loan, and Law would charge a six percent commission for his efforts. The agreement called for Chan to be loaned $100,000 to be disbursed over time, with interest at 11 percent per annum on the full amount of the loan, whether or not it was fully disbursed. Chan executed a promissory note and trust deed. Chan began making monthly interest payments of $911. Chan realized that Law was the beneficial owner of the note and trust deed, rather than his brother. After Chan received $75,000, disbursements on the loan ceased. Demands to disburse the balance of the funds have failed. In 2009, Chan began facing financial problems and desired a reverse mortgage, but the existence of the existing loan made that impossible. Chan and defendants orally agreed to temporarily remove the…