Deermont

INTRODUCTION

Appellant Gabriel Ortiz appeals the trial court’s judgment finding that Ortiz’s cross-complaint, which sought to cancel the deed of trust resulting from a foreclosure, was barred by collateral estoppel. Ortiz asserts that the court abused its discretion in allowing Deermont, LLC (Deermont), and U.S. Credit Bancorp, Inc. and its representative Michael Rone (collectively referred to as Bancorp) to amend their answers to include the defense of collateral estoppel on the eve of the bench trial. Ortiz also argues that collateral estoppel is inapplicable because the elements for collateral estoppel have not been satisfied and because the prior judgment resulted from an arbitration award. We affirm because Ortiz never asserted prejudice in opposing the amendments, was in privity with a party to the prior proceeding, and the issues necessarily decided in the prior adjudication are identical to the issues raised by the cross-complaint. Because this is an assertion of mutual collateral estoppel, the fact the prior judgment resulted from arbitration is inconsequential.

FACTS AND PROCEDURAL BACKGROUND

Prior to the foreclosure, Anatolio and Guadalupe Garcia owned the property…