Decided: Can get 05, 1998

Larry M. (Freddie Mac) inside the tort and you may violation out of package step regarding property foreclosure up on a few features called this new Windbell property and the Dalton Lay possessions. Siegel claims that section court erred when it concluded that this is barred by the res judicata, while it granted Freddie Mac attorney’s costs sustained when you look at the protecting the experience. step one I affirm both the region court’s grant out-of summation judgment and its own honor away from attorney’s costs.

Siegel is attractive the new area court’s grant off realization judgment during the like of Federal Mortgage Financial Corp

On November twenty-two, 1989, Siegel and Gerber, their mate, done and you may introduced a good Multifamily mention (the latest Windbell mention) in which they promised to pay the new J.We. Kislak Mortgage Agency (Kislak) the main sum of $840,100 in monthly obligations. The mention are secured from the an action of Believe, Project away from Rents and you will Protection Arrangements, and by a collateral Task from Leases. To your November twenty-seven, 1989, Siegel and you will Gerber done and introduced several other Multifamily note (this new Dalton Set note) where they guaranteed to spend Kislak the main amount of $900,100000. You to notice has also been secured by the an effective Multifamily Deed of Believe, Task out-of Rents and you may Security Plans, and you will a security Project off Accommodations. The brand new rider towards Dalton Set deed from believe so long as the latest debtor you will definitely offer otherwise americash loans Harpersville import his interest in the house or property instead of speed of entire loans so long as the fresh transferee’s creditworthiness and you will management feature are satisfactory so you’re able to Bank and you will the fresh new transferee possess performed ? a composed presumption arrangement. Kislak then marketed and you will tasked the latest notes and deeds off trust so you can Freddie Mac computer.

You Judge from Appeals,Ninth Routine. Larry Meters. SIEGEL; Selwyn Gerber, Plaintiffs-Appellants, v. The latest Government Mortgage Home loan Agency; J.I. Kislak Mortgage Firm; Gunther Torriani; Carolyn Paz, Defendants-Appellees. Zero. 97-55174

Siegel and you will Gerber educated ongoing monetary complications in maintaining the fresh Dalton Set possessions. Towards the end away from 1991, it attempted to promote the house. Two activities registered also offers-Andrew Hansen and you will Cunningham Funding Corporation. Freddie Mac computer figured Hansen is an unacceptable consumer because of his insufficient managerial feel, the condition of their other characteristics, and his limited financial resources. The following promote from Cunningham Investment Company is actually taken just before Freddie Mac acted with it.

Into the December 1992, Siegel and you may Gerber defaulted on the personal debt beneath the Windbell loan, and you can Freddie Mac foreclosed thereon property. Trying an insufficiency view, Freddie Mac registered an action inside the government district legal throughout the Northern Section off Tx. Before demo, Siegel announced case of bankruptcy. Siegel and you will Gerber including defaulted towards financing with the Dalton Lay property.

Freddie Mac computer recorded a few proofs of allege facing Siegel throughout the personal bankruptcy. One regarding new Windbell property additionally the most other on the Dalton Put assets. Siegel don’t file arguments to the people proofs out of allege. Neither performed the fresh bankruptcy proceeding trustee. Inside March 1994, the personal bankruptcy court supplied Freddie Mac relief from the fresh stay very that it could foreclose to the Dalton Lay possessions. On June ten, 1994, Siegel is discharged of bankruptcy, and therefore matter was finalized for the June 30, 1994. Into August 2, 1994, Freddie Mac computer foreclosed on the Dalton Lay assets.

But not, during the April away from 1994, Siegel and you will Gerber got currently put this action about Premium Courtroom of your own Condition out of California with the Condition off Los Angeles. Freddie Mac computer removed the action to the Federal Area Judge to own the brand new Central Section of California into the Oct, 1994. Freddie Mac upcoming moved to have realization judgment facing Siegel with the all the claims because, it said, Siegel’s action is banned by the res judicata aftereffect of the bankruptcy. 2 The district courtroom granted Freddie Mac’s actions. Following region legal offered the fresh new action, Freddie Mac computer relocated to recover attorney’s costs sustained for the defending facing Siegel’s states. New district courtroom granted you to motion and denied Siegel’s next motion getting reconsideration. Siegel appealed.