Blechman

Property owned by appellant Robert A. Blechman was sold through foreclosure by respondents Washington Mutual Bank (WAMU) and its trustee California Reconveyance Company (CRC) to respondent Gladmac, Inc., as trustee for the Lucile Trust UDT 9/6/02 (Gladmac). In a prior lawsuit, Blechman sued WAMU, CRC and Gladmac to set aside the trustee’s sale. WAMU and CRC demurred to Blechman’s complaint, but Blechman dismissed WAMU and CRC before the demurrer was heard, and proceeded by default against Gladmac. The default judgment declared the trustee’s sale null and void and that Gladmac had the right to seek recovery of the purchase price from the sellers.

WAMU and CRC then filed the instant action seeking declaratory relief that the trustee’s sale was valid and that they had no liability to any party. Gladmac cross-complained for declaratory relief that it had good, clear, marketable title to the property. The trial court found that WAMU and CRC were indispensable parties to the prior lawsuit and that the default judgment against Gladmac was therefore subject to collateral attack. The trial court found the trustee’s sale was valid, that WAMU and CRC had no liability to any party,…