Baghdassarians v. SK Vision CA2/5 ( 2022 )


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  • Filed 6/13/22 Baghdassarians v. SK Vision CA2/5
    NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS
    California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions
    not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion
    has not been certified for publication or ordered published for purposes of rule 8.1115.
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION FIVE
    AREG BAGHDASSARIANS,                                        B310345
    Plaintiff and Appellant,                          (Los Angeles County Super.
    Ct. No. 19GDCV01096)
    v.
    SK VISION, LLC,
    Defendant and Respondent.
    APPEAL from an order of the Superior Court of Los
    Angeles County, Curtis A. Kin, Judge. Affirmed and remanded
    with directions.
    YK Law and Vahe Khojayan for Plaintiff and Appellant.
    Law Offices of Eugene S. Alkana, Eugene S. Alkana and
    Robert I. Alkana for Defendant and Respondent.
    __________________________
    Plaintiff and appellant Areg Baghdassarians as trustee for
    AEAB Trust appeals the judgment in favor of defendant and
    respondent SK Vision, LLC, following a bench trial on his
    complaint for an easement by necessity. Baghdassarians owns a
    vacant lot behind residential property owned by SK Vision, and
    argues the evidence established the elements for an easement by
    necessity as a matter of law. We conclude that, while
    Baghdassarians may have established a prima facie case for an
    easement, the trial court’s implied finding that SK Vision
    defeated that prima facie case is supported by substantial
    evidence. We therefore affirm.
    FACTUAL AND PROCEDURAL BACKGROUND
    This appeal is presented as a property dispute, but the
    facts reveal that it is much more personal. Specifically, both
    properties had previously been owned by Baghdassarians – the
    residential property held his home and the vacant lot behind it
    was largely unused. The dispute arose when SK Vision
    demanded, and ultimately foreclosed on, a deed of trust on
    Baghdassarians’s “personal residence located at 4343 Vista
    Place,” unaware that Baghdassarians’s address actually
    encompassed both parcels.
    1.     SK Vision Obtains the Residential Property
    Greg Kurdoglanyan is the owner and managing member of
    SK Vision. Kurdoglanyan and Baghdassarians (and their
    companies) had been involved in a number of real estate
    projects.1 The business relationship soured, and SK Vision
    1      We refer to Baghdassarians and all his related entities
    collectively as Baghdassarians. We refer to Kurdoglanyan and
    SK Vision collectively as SK Vision (except when necessary to
    refer to Kurdoglanyan as an individual).
    2
    brought suit against Baghdassarians for the loss of its
    investments. On August 26, 2010, they settled their dispute for
    $2.6 million, pursuant to a written agreement. Under the
    agreement, Baghdassarians agreed to transfer certain unrelated
    properties to SK Vision, as well as $1,946,000, to be paid in
    $6,000 monthly installments. Baghdassarians agreed to provide
    SK Vision with two deeds of trust on a specified (unrelated)
    property to secure his obligations. The parties also agreed to
    execute a stipulation for entry of judgment in the amount of $2.6
    million, to be held unfiled unless there was a default in the terms
    of the settlement agreement.
    Eighteen months later, on February 24, 2012, counsel for
    SK Vision wrote Baghdassarians, documenting further
    agreements that had been negotiated privately between
    Baghdassarians and Kurdoglanyan. Baghdassarians signed the
    letter, agreeing to its terms. According to the letter,
    Baghdassarians “apparently acknowledged that [he was] in
    default in a number of respects in connection with the Settlement
    Agreement . . . .” Based on Baghdassarians’s proposals, SK
    Vision was “amenable to holding off on the filing of the judgment
    provided certain conditions are met.” The letter then itemized a
    number of conditions.
    Among other terms, Baghdassarians agreed to sign a new
    deed of trust in favor of SK Vision to replace the original deeds of
    trust listed in the settlement agreement. The letter stated, “The
    Deed of Trust will be secured by your personal residence located
    at 4343 Vista Place, La Canada-Flintridge, California, which
    shall be security for the Settlement Agreement . . . .”
    Baghdassarians, at this point, held record title to the
    property located at 4343 Vista Place. But what Baghdassarians
    3
    knew, and SK Vision did not, was that the property at that
    address consisted of two separate parcels – Baghdassarians’s
    personal residential property in front, and the vacant lot behind.2
    In compliance with his understanding of the agreement,
    Baghdassarians gave SK Vision a deed of trust on the residential
    property, but not the vacant lot behind it. SK Vision recorded the
    deed of trust on May 21, 2012.
    Some four years later, SK Vision foreclosed the deed of
    trust and obtained the residential property with a credit bid at
    the trustee’s sale. SK Vision recorded its trustee’s deed on
    April 19, 2016.
    2.    The Two Properties
    The residential property is situated on a public street, and
    consists of “the street level and flat livable area where the house
    and level backyard is situated.” Baghdassarians testified that
    the “residence built on [the property] consumed the entire
    parcel.” It contains the house, and a backyard with a swimming
    pool. It is “surrounded on three sides by a concrete wall. At the
    2      The two lots have assessor’s parcel numbers 5810-019-007
    and 5810-019-009, respectively. According to the agreed
    statement provided on appeal, the 007 parcel contains the vacant
    lot and the 009 parcel is the residential property. This is
    mistaken. The assessor’s map confirms that 007 is the
    residential property and 009 is the vacant lot. The agreed
    statement indicates that Baghdassarians’s testimony was in
    accord with the assessor’s map. The error is only in the agreed
    statement’s description of the case, and, unfortunately, crept into
    the trial court’s judgment, which provides that there is no
    easement over 009 (which is actually the vacant lot) in favor of
    007 (the residential property). At oral argument, the parties
    agreed the judgment was mistaken in this regard. We will
    remand with directions for the trial court to correct it.
    4
    time of construction and thereafter, there was no access provided
    from the residence parcel to the vacant parcel. [Baghdassarians]
    built a fence separating the residence lot from the vacant lot.”
    There is no gate or entryway in the fence allowing access.
    The vacant lot has no direct access to the street. It
    “consists of a small downward slope behind the fenced area” of
    the residential property. “It is vacant land, and essentially
    unusable.” It did, however, contain the equipment for the
    residence’s swimming pool.
    It is not disputed that, as a matter of legal title, the vacant
    lot is landlocked and has no direct access to any public road. It is
    also undisputed that the vacant lot is not factually landlocked,
    and can be reached by crossing over other undeveloped land,
    owned by a third party. Baghdassarians never contacted the
    third party who owned this land, to see if it would be amenable to
    an easement for the vacant lot.3
    3.      Baghdassarians Uses His Ownership of the Vacant
    Lot to Interfere with SK Vision’s Use of the
    Residential Property
    SK Vision’s deed of trust on the residential property had
    been in a junior position; after SK Vision foreclosed, the property
    was still encumbered by two senior liens. In 2016, in order to
    prevent loss of the property to the senior lienholders, SK Vision
    filed for Chapter 11 bankruptcy.
    Part of SK Vision’s bankruptcy plan was to rent out the
    house for $5000 per month. Baghdassarians objected to the plan,
    3    There is no evidence that SK Vision did, either.
    Kurdoglanyan, at deposition, testified that he did not know who
    owned the adjacent empty parcel.
    5
    arguing that his property – the vacant lot – was necessary to SK
    Vision’s reorganization.4
    SK Vision installed new pool equipment on the residential
    property. It argued that, therefore, the residential property could
    “be rented and the tenant or anyone else never has to set foot on
    the portion owned by [Baghdassarians].” SK Vision also
    submitted a declaration to the bankruptcy court from a real
    estate agent, Albert Babayan. Babayan confirmed that 4343
    Vista Place consisted of the two separate lots – the residential
    property and the vacant lot. He gave his professional opinion
    that “SK Vision [] can lease its property as a tenant would never
    have to physically enter [Baghdassarians’s] lot.”5
    On December 27, 2018, the bankruptcy court approved SK
    Vision’s plan.
    According to Babayan (the real estate agent), he
    subsequently listed the residential property for sale. It was in
    escrow when Baghdassarians filed the current action to establish
    an easement. The buyers withdrew their offer.
    4     Baghdassarians’s objection is not part of the record. The
    record does, however, contain a declaration of Kurdoglanyan
    submitting his “proof as to why Mr. Baghdassarian[s] in his
    Objection to the Amended Disclosure Statement are without
    merit and his portion is not necessary to SK Vision’s
    reorganization.”
    5     In the course of their bankruptcy submissions,
    Kurdoglanyan and Babayan declared that there was no direct
    access to the vacant lot from the street. Baghdassarians relied on
    these declarations at trial in this case.
    6
    4.    Proceedings in this Action
    On August 27, 2019, Baghdassarians filed a verified
    complaint to quiet title to an easement and for declaratory relief
    regarding the extent and parameters of the easement. SK Vision
    answered and filed a cross-complaint, which is largely not
    implicated by this appeal.6
    On November 16, 2020, the court held a brief bench trial,
    where three witnesses (Baghdassarians, Kurdoglanyan and
    Babayan) testified, and over 30 documents were admitted into
    evidence. Neither party requested a statement of decision. The
    following day, the court announced its decision in favor of SK
    Vision, concluding that Baghdassarians was not entitled to an
    easement. Judgment was entered accordingly, on December 11,
    2020. Baghdassarians filed a timely notice of appeal.
    As there had been no court reporter present at the trial, the
    parties agreed to proceed on appeal by means of an agreed
    statement. The agreed statement summarized the testimony of
    the witnesses and attached all written exhibits.
    DISCUSSION
    On appeal, Baghdassarians argues that the trial court
    erred in denying him an easement, in that he had established,
    without dispute, the two prerequisites for an easement on the
    6     SK Vision alleged that, in order to preserve its own
    property from foreclosure, it paid Baghdassarians’s share of an
    encumbrance on both properties, and sought restitution in the
    form of an equitable lien. It also sought damages for the loss of
    value to its property, in the event Baghdassarians received an
    easement. SK Vision did not prevail on either cause of action,
    and did not file a separate notice of appeal to challenge this
    ruling. It did, however, obtain judgment on its cause of action for
    declaratory relief that there is no easement.
    7
    basis of legal necessity: (1) both parcels had been under common
    ownership; and (2) separating the common ownership landlocked
    his parcel. The trial court found that Baghdassarians was not
    entitled to an easement by necessity on these facts alone. We
    affirm.
    1.     Law of “Easement by Necessity”
    “Generally, an easement by necessity arises from an
    implied grant or implied reservation in certain circumstances
    when a property owner (the grantor) conveys to another (the
    grantee) one out of two or more adjoining parcels of the grantor’s
    property. When there is no express provision for access, and the
    parcel conveyed is either landlocked entirely by the parcels
    retained by the grantor or landlocked partly by the grantor’s
    retained land and partly by the land of others, the grantee may
    claim an implied grant of a right-of-way of necessity over the land
    retained by the grantor. [Citation.] Conversely, when the
    grantor conveys adjoining property without an express
    agreement for access to a retained parcel left landlocked, the
    grantor may seek an implied reservation of a right-of-way of
    necessity over the conveyed property for the retained parcel’s
    benefit. [Citation.]” (Murphy v. Burch (2009) 
    46 Cal.4th 157
    ,
    162-163.)7
    The issue, however, is ultimately one of intent. Necessity
    in the abstract does not itself create the easement, necessity may
    simply evidence the grantor’s intention to convey one and raise
    the implication of a grant. (Daywalt v. Walker (1963)
    
    217 Cal.App.2d 669
    , 673.) “In California, the easement arises by
    7    The template the Supreme Court described in Murphy v.
    Burch is essentially the fact pattern presented in the instant
    appeal.
    8
    implication based on the inferred intent of the parties to the
    property conveyance, as determined from the terms of the
    relevant instrument and the circumstances surrounding the
    transaction.” (Murphy v. Burch, 
    supra,
     46 Cal.4th at
    p. 163.) “ ‘ “The implication of an easement by necessity is based
    upon the inferred intent of the parties, which is to be determined
    from the terms of the instrument and circumstances surrounding
    the transaction; the implication will not be made where it is
    shown that the parties did not intend it. . . . Necessity alone
    without any reference to any relations between the respective
    owners of the land is not sufficient to create this right.” ’ ”
    (Daywalt v. Walker, supra, 217 Cal.App.2d at p. 673.)
    A prima facie case of an easement by necessity arises when
    parcels were under common ownership and a conveyance was
    made which landlocked one of the parcels and created a strict
    necessity for access across the other. (Hewitt v. Meaney (1986)
    
    181 Cal.App.3d 361
    , 366 [trial court finding of no easement
    affirmed on appeal when defendant’s evidence of lack of intent
    was sufficient to overcome the presumption for an easement by
    necessity].) This is a presumption affecting the burden of proof.
    (Id. at p. 367.) Once the plaintiff establishes a prima facie case,
    the burden switches to the defendant to establish by a
    preponderance of the evidence that the common grantor did not,
    in fact, intend to reserve an easement. (Ibid.) This is a question
    of fact for the trial court. (Roemer v. Pappas (1988)
    
    203 Cal.App.3d 201
    , 207.) The trial court’s determination cannot
    be disturbed if there was substantial evidence to support it.
    (Ibid.)
    9
    2.     Doctrine of Implied Findings
    According to the agreed statement, the trial court ruled
    that Baghdassarians “was not entitled to an easement by
    necessity since he had not established strict necessity at the time
    of conveyance, but also based upon the fact that Plaintiff offered
    no description of any easement.” Baghdassarians argues that the
    court erred because he established the prerequisites for an
    easement as a matter of law. Among other arguments, SK Vision
    responds that, even if Baghdassarians had established those
    elements, giving rise to the presumption, it successfully
    countered the presumption with sufficient evidence that no
    easement was actually intended. The first issue we must address
    is whether we can consider SK Vision’s argument, as the agreed
    statement does not reflect an express trial court ruling on the
    issue of intent.
    “ ‘ “Under the doctrine of ‘implied findings,’ when parties
    waive a statement of decision expressly or by not requesting one
    in a timely manner, appellate courts reviewing the appealed
    judgment must presume the trial court made all factual findings
    necessary to support the [order] for which there is substantial
    evidence.” ’ [Citation.] ‘ “In other words, the necessary findings
    of ultimate facts will be implied and the only issue on appeal is
    whether the implied findings are supported by substantial
    evidence.” ’ [Citation.] The doctrine of implied findings ‘is a
    natural and logical corollary to three fundamental principles of
    appellate review: (1) a judgment is presumed correct; (2) all
    intendments and presumptions are indulged in favor of
    correctness; and (3) the appellant bears the burden of providing
    an adequate record affirmatively proving error.’ [Citation.]”
    (Abdelqader v. Abraham (2022) 
    76 Cal.App.5th 186
    , 197.)
    10
    Here, although there was no statement of decision, the
    parties’ agreed statement purports to document reasons given by
    the court when it announced its decision. The parties have not
    identified, and independent research has not disclosed, caselaw
    addressing whether the doctrine of implied findings applies in a
    situation where there was no statement of decision, but the
    parties instead relied on an agreed statement. There is, however,
    some authority addressing the question in the context of a settled
    statement. (Compare A.G. v. C.S. (2016) 
    246 Cal.App.4th 1269
    ,
    1280-1283 (A.G.) [the doctrine of implied findings generally
    applies when there is a settled statement] with In re Marriage of
    Fingert (1990) 
    221 Cal.App.3d 1575
    , 1580 [doctrine does not
    apply when the settled statement contains the court’s decision
    and the judge’s statement of reasons for it].)
    Before addressing that authority, it is important to identify
    the differences between agreed statements and settled
    statements. An agreed statement is prepared by the parties and
    signed by them. (Cal. Rules of Court, rule 8.134(a)(1).) In
    contrast, a settled statement is “approved by the superior court.”
    (Cal. Rules of Court, rule 8.137(a).) The trial court reviews the
    settled statement proposed by the appellant, and any proposed
    amendments from the respondent, and may order corrections or
    modifications to it. (Cal. Rules of Court, rule 8.137(f)(3).) Here,
    the parties proceeded by means of an agreed statement, not a
    settled statement. They stipulated to the language in the agreed
    statement, but court approval was not required or obtained. In
    other words, the agreed statement provides this court with only
    the parties’ agreed recollection of the trial court’s orally stated
    reasons for its ruling, without giving the court an opportunity to
    confirm whether the statement was accurate or complete.
    11
    Moreover, California Rules of Court, rule 8.134(a)(1)
    provides that an agreed statement “must explain the nature of
    the action, the basis of the reviewing court’s jurisdiction, and how
    the superior court decided the points to be raised on appeal.”
    (Emphasis added.) Here, SK Vision raised in its respondent’s
    brief the issue of the parties’ intent, and Baghdassarians briefed
    it in reply. Yet the parties failed to include in the agreed
    statement “how the superior court decided” this point.
    The issue before us thus becomes whether the doctrine of
    implied findings applies when no statement of decision was
    requested and the parties chose to proceed by an agreed
    statement which fails to address all points raised on appeal, in
    violation of the applicable Rule of Court.
    Although the A.G. court was concerned with a settled
    statement approved by the court, rather than an unapproved
    agreed statement, much of its analysis applies here. As the A.G.
    court explained, a “settled statement is a ‘condensed narrative of
    the oral proceedings that the appellant believes are necessary for
    the appeal.’ [Citation.] As a summarized narrative of what was
    said, a settled statement may not capture the judge’s complete
    analysis of an issue of fact or law, even if the judge ruled from the
    bench.” (A.G., supra, 246 Cal.App.4th at p. 1282.) In contrast, a
    statement of decision “provides a complete record of the court’s
    reasoning. It goes beyond memorializing only a condensed
    narrative of the oral proceedings. ‘The purpose of the statement
    is to provide an explanation of the factual and legal basis for the
    court’s decision.’ [Citation.] A statement of decision gives the
    trial court ‘an opportunity to place upon [the] record, in definite
    written form, its view of the facts and the law of the case, and to
    12
    make the case easily reviewable on appeal by exhibiting the exact
    grounds upon which judgment rests.’ [Citation.]” (Ibid.)
    “As a ‘condensed narrative of the oral proceedings,’ a
    settled statement does not guarantee the reviewing court has
    before it the factual and legal basis for the trial court’s
    determination.” (A.G., supra, 246 Cal.App.4th at p. 1283.)
    “There is no certification that what appears as the court’s order is
    the court’s complete factual and legal basis supporting its
    decision on each principal controverted issue for which a
    statement may have been requested and is before us on appeal.
    Given this omission and consequent uncertainty, we are not at
    liberty to ignore the doctrine of implied findings and reverse the
    trial court on factual and legal grounds it may have actually
    considered but not expressed in writing. We thus apply the
    doctrine of implied findings as we review the trial court’s
    decision.” (Ibid.)
    We need not decide whether the doctrine of implied
    findings applies when there is a settled statement but no
    statement of decision. But the analysis of the A.G. court applies
    with great force in this case – where there is only an agreed
    statement which memorializes the parties’ recollection of the
    court’s expression of reasons on the few points the court chose to
    address, not having been requested to address all issues that
    would be raised on appeal.
    For these reasons, we do not consider ourselves limited to
    the reasons for the trial court’s ruling set forth in the agreed
    statement, and instead apply the doctrine of implied findings to
    uphold the court’s judgment if there is substantial evidence for
    any findings of ultimate fact that would support it.
    13
    3.     Substantial Evidence Supports the Implied Finding
    That No Easement Was Intended
    Pursuant to the doctrine of implied findings, we can imply
    a trial court finding that an easement was not intended, if
    supported by substantial evidence. The issue presented by this
    appeal is: Assuming that Baghdassarians established a prima
    facie case for an easement by necessity, does substantial evidence
    support the trial court’s implied finding that an easement was
    not intended and, therefore, not created?
    Baghdassarians originally purchased the property in 2003.
    While it is not clear how much of the residence he constructed, he
    testified that “[s]ince 2005 the residence parcel has been fully
    developed as a residence, with a swimming pool, built in
    barbeque, surrounded on three sides by a concrete wall.”
    Baghdassarians specifically testified that he built the fence
    separating the residential property from the vacant lot.
    The evidence supports the conclusion that Baghdassarians
    always viewed the vacant lot as undevelopable land that served
    the only purpose of providing a convenient place to keep his pool
    equipment out of view. That he never intended to make any use
    of the parcel is demonstrated by the fact that he did not even
    create a means of access from the residential property to the
    vacant lot, and instead fenced off the residential property
    completely.8 He has never submitted plans for developing the
    vacant parcel, and could not identify the scope of easement he
    sought. As the residence “consumed the entire” residential
    parcel, it can be inferred that any easement – whether a path for
    8     The record fails to explain how Baghdassarians accessed
    the vacant lot for any maintenance of the pool equipment. He
    may well have used the adjacent vacant property for access.
    14
    walking or road for driving – would require damaging the
    existing residential structures. A reasonable inference is that
    Baghdassarians chose to sacrifice the vacant lot in favor of
    complete development of the residential property.
    There is certainly no express statement of intent to create
    an easement to benefit the vacant lot. As for inferred intent, the
    evidence supports a finding that, when Baghdassarians agreed to
    provide SK Vision with a deed of trust on his “personal residence
    located at 4343 Vista Place,” it was the objective intent of the
    parties that the deed of trust covered both the residential
    property and the vacant lot appurtenant to it. The two parcels
    have a single address – 4343 Vista Place. Even if we focus only
    on the actions of Baghdassarians, when he gave SK Vision a deed
    of trust on the residential property, he understood the risk that a
    foreclosure would occur and sever the common ownership of the
    properties. He testified, however, that, he “never intended to
    retain any easement rights at the time he signed the Deed of
    Trust.”9
    9      On appeal, Baghdassarians argues that this testimony is
    irrelevant, because the relevant moment at which we must
    consider the parties’ intent is when the common ownership was
    severed at foreclosure, not four years earlier when the deed of
    trust was signed. The testimony, as set forth in the agreed
    statement, is ambiguous. It could mean, as Baghdassarians
    presumes, that at the time he signed the deed of trust,
    Baghdassarians did not intend to retain any easement rights,
    because at that point in time he still owned both parcels. In the
    alternative, it could mean that at the time he signed the deed of
    trust, Baghdassarians did not intend to retain easement rights
    should he lose the property in the future. On this limited record,
    the trial court could have adopted either interpretation.
    15
    Nor did he tell SK Vision that he intended to retain
    easement rights in the event of a foreclosure, which, of course,
    would have meant the claimed easement rights would impair the
    value of SK Vision’s security interest. Baghdassarians was
    hoping to prevent entry of a $2.6 million judgment against him;
    he needed to provide SK Vision with sufficient security. This
    would have been impossible if it was understood by both parties
    that the value of residential property would have been lessened
    by Baghdassarians’s easement for access to his retained, unused
    vacant lot.
    We find a 19th century case, San Joaquin Valley Bank v.
    Dodge (1899) 
    125 Cal. 77
     (San Joaquin Valley Bank), instructive
    even though it upheld an easement by necessity. There, Dodge
    owned land he mortgaged to Hewlett. A few years later, Dodge
    recorded a declaration of homestead on a portion of the land.
    When Hewlett later commenced an action to foreclose the
    mortgage, the court entered judgment for $15,000; that judgment
    was imposed as a lien on five parcels, numbered 1-5; parcel 5 was
    the homestead. The court directed the sale of the land in
    numerical order; if sufficient funds were raised from the sale of
    the first four properties, the homestead would not be sold. The
    four properties were sold, but the sale of parcel 4 rendered parcel
    4 landlocked. Its owner (the successor of the buyer) sought an
    easement by necessity over the homestead. (Id. at pp. 79-80.)
    The court granted an easement, and the California Supreme
    Court affirmed.
    In the course of its opinion, the high court explained, “For
    the benefit of defendants in the foreclosure proceedings the
    decree provided that the land should be sold in five different lots,
    and that if the first four lots could be sold for enough, then lot 5
    16
    should be saved as a home. If the purchaser of lot 4 could not use
    the same because of no way to reach it, and that fact had been
    announced at the sale, the homestead might have had to be sold
    under the decree. To apply the rule to the purchaser of lot 4, and
    against the very person who was benefited by its sale, seems to
    us to be just and in accordance with the authorities.” (San
    Joaquin Valley Bank, supra, 
    125 Cal. 77
     at p. 83.)
    A similar rationale applies here, but the reversed position
    of Baghdassarians and SK Vision requires the opposite result.
    Baghdassarians provided the deed of trust as security for his
    obligations under the settlement agreement and to avoid entry of
    judgment. If SK Vision had known at the time of the deed of
    trust (and subsequent foreclosure sale) that Baghdassarians
    claimed an easement over the residential property, impairing the
    value of the security in favor of the very party who was trying to
    avoid entry of judgment, the transaction might have looked very
    different.10 Baghdassarians did not inform SK Vision that he
    intended SK Vision’s security would be so encumbered; it was for
    his benefit at that time to make SK Vision believe the security
    was valuable.
    Baghdassarians’s conduct following foreclosure confirms
    that he never intended to reserve an easement over the
    residential property. He did not request access over the
    residential property to gain access to the vacant lot. He did not
    contact third party property owners of adjacent vacant property
    10    For example, if SK Vision had instead filed entry of
    judgment – which was its right – it could have recorded the
    abstract of judgment as a lien against all of Baghdassarians’s
    properties including the vacant parcel. (Code Civ. Proc.,
    § 697.310, subd. (a).)
    17
    to negotiate an alternative right of access. Instead, he injected
    himself into SK Vision’s bankruptcy, attempting to challenge SK
    Vision’s reorganization, arguing that SK Vision could not rent out
    the residential property without his involvement, due to his
    retained ownership of the vacant lot.
    Put simply, the evidence supports the trial court’s implied
    finding that this was not the case of a common owner granting a
    portion of his property subject to an implied easement by
    necessity for the use of his retained property. Instead, it was the
    case of a defaulting debtor attempting to weaponize property law
    for the purpose of reducing the value of real property the debtor
    lost by foreclosure to his creditor. Thus, on largely uncontested
    facts, the trial court impliedly found there was no intent to create
    an easement by necessity, and substantial evidence supported
    that finding.
    DISPOSITION
    The judgment is affirmed. The matter is remanded for the
    trial court to enter an amended judgment, providing that, on SK
    Vision’s cross-complaint’s cause of action for declaratory relief,
    the court finds that SK Vision’s property, known as parcel
    number 5810-019-007, is not subject to any easement by
    necessity in favor of Baghdassarians’ property, parcel number
    5810-019-007.
    Baghdassarians shall pay SK Vision’s costs on appeal.
    RUBIN, P. J.
    WE CONCUR:
    MOOR, J.                             KIM, J.
    18
    

Document Info

Docket Number: B310345

Filed Date: 6/13/2022

Precedential Status: Non-Precedential

Modified Date: 6/13/2022