Canyon Vineyard Estates v. Commonwealth Land Title Ins. Co. CA2/7

facts upon which the liability or defense is based.”]; see City of Cotati v. Cashman (2002) 29 Cal.4th 69, 79; Bel Air Internet, LLC v. Morales (2018) 20 Cal.App.5th 924, 929.)

3 rest. DeJoria agreed to sell the Property for $1,060,000 and to donate the remainder of the $13 million appraised value. In a 2002 grant deed (the Grant Deed), DeJoria stated the Property “shall be held in perpetuity as natural open space” and established “covenants running with the land, binding upon the real property and each successive owner thereof.” The Grant Deed also specified that if Mountains Restoration or any successors breached the use restrictions, DeJoria was entitled to a return of the Property. To facilitate the sale, Mountains Restoration took out a $1,060,000 loan, secured by a first-priority deed of trust on the Property (the Deed of Trust). In January 2002 a title company recorded the Grant Deed, the Deed of Trust, and a subordination agreement among DeJoria, Mountains Restoration, and the bank (the Subordination Agreement). The Subordination Agreement ensured the bank’s Deed of Trust was the “ ‘first’ priority lien” on the Property and was superior to DeJoria’s right to a return of…