Canyon View Limited v. Lakeview Loan Servicing CA2/1

FACTS AND PROCEEDINGS BELOW

A. The Lakeview Action and Canyon View I At a public sale following abandonment proceedings under the California Mobilehome Residency Law (Civ. Code, § 798

3 et seq.) (the MRL), Canyon View purchased a mobilehome in which Lakeview held a lien. Under the MRL, the purchase of a mobilehome via such a proceeding extinguishes all then-existing liens and interests in the home. After Canyon View acquired title in this manner, Lakeview nonetheless recorded documents that asserted a lien on and a security interest in the home. Canyon View filed a complaint against Lakeview alleging that such recordations created a cloud on title. The parties resolved the action in Canyon View’s favor before trial via a stipulated judgment. The MRL entitles the prevailing party in an action “arising out of ” the MRL to reasonable attorney fees. (Civ. Code, § 798.85.) The court denied Canyon View’s initial motion for attorney fees on the basis that the Lakeview action did not arise out of the MRL, and that even if it did, no amount of attorney fees would be reasonable to award Canyon View in any event. In Canyon View I, we reversed, holding the Lakeview action did arise out…