Century Community Lending v. Saleh CA2/7

INTRODUCTION

Cross-defendant Jackie Saleh appeals from an order denying her motion to vacate a default and default judgment entered against her and in favor of cross-complainant Century Community Lending Company. She contends the trial court abused its discretion in denying her motion, which sought relief on equitable grounds. We reverse.

FACTUAL AND PROCEDURAL BACKGROUND

A. The Loan Jackie Saleh (Jackie) and her husband Salah Saleh (Salah)1 owned property located at 11835 Vanowen Street in North Hollywood. The property consisted of a liquor store and a separate residence in which the Salehs lived with their two sons. Salah talked to representatives of Century Community Lending Company (CCLC) about obtaining a loan to build a 10-unit apartment building on the property. As a condition for the loan, CCLC had to approve the contractor for the apartment project. CCLC chose Urban Pacific Construction, Inc. (Urban) as the general contractor. On December 1, 2008 the Salehs formed Samax Development, LLC (Samax) for the sole purpose of acting as the borrower and developer for the apartment project, and contracted with Urban to act as general contractor. Salah was the sole member of…