Jones

Civil Code section 2934a, subdivision (a)(4) provides that the beneficiary of a deed of trust may replace the appointed trustee simply by recording a substitution, and that “the new trustee shall succeed to all the powers, duties, authority, and title granted and delegated to the trustee named in the deed of trust.” We conclude that under the circumstances here reformation may validate a foreclosure sale under section 2934a when a former trustee mistakenly conducts the sale after a new trustee has been substituted.

Facts and Procedural History

The Loan and Deed of Trust

In June 1988, LCF Income Group (hereafter LCFIG), La Canada Flintridge Development Corporation (hereafter LCFDC), San Martin Investment Development Corporation (hereafter San Martin), and Peppertree Corporate Business Park, Ltd. (hereafter Peppertree), obtained a loan in the amount of $8.7 million from the predecessor in interest to Union Bank of California (hereafter the bank). The borrowers used the loan proceeds to purchase and develop property in Simi Valley (hereafter the Peppertree property). The loan was secured by a deed of trust on the Peppertree property. The deed of trust contained the…