Estate of Woods CA2/1

BACKGROUND

In 2008, Woods filed a complaint against McBeth entitled Woods v. McBeth (Super. Ct. L.A. County, No. BC390549) (Quiet Title Action). The Quiet Title Action alleged causes of action for quiet title, declaratory relief, fraudulent conveyance, partition, money had and received, unjust enrichment, and embezzlement concerning properties held separately and jointly by Woods and McBeth, including two properties owned jointly by Woods and McBeth located on South Broadway in Los Angeles (Broadway Property) and on Monteith Drive in Los Angeles (Monteith Property). The Quiet Title Action alleged that McBeth had not been paying her share of loans on the properties and had not been using the rent money to maintain the properties or pay taxes. Also, McBeth had received a $1 million loan secured by a deed of trust on property

2 located on Senford Avenue that she purchased with a fraudulent loan application using Woods‟s name. In May 2010, Woods and McBeth entered into a “Compromise Agreement and Mutual Release” (Settlement Agreement). The Settlement Agreement provided, in pertinent part, as follows. “3. Each party . . . settles . . . all . . . claims . . . [arising] from the…