Calif. Appeals Court OKs $300K+ Award To Homeowner In Home Equity Ripoff; Says State Anti-Foreclosure Rescue Statute Applied In Sale To Operator

A California appeals court affirmed a lower court award of over $300,000 to a homeowner facing foreclosure in connection with with a home equity ripoff perpetrated by a foreclosure rescue operator. The ruling also affirmed an additional award of over $350,000 for the homeowner's loss of his personal property that he was forced to leave behind in the home when he was abruptly forced to vacate the premises shortly after the closing of the ripoff transaction.

The appeals court did remand the case back to the trial court for a determination of the legal fees the successful homeowner's attorney is entitled to collect from the losing defendants pursuant to the state's anti-foreclosure rescue statute.

Among the legal issues discussed in the ruling were the application of the California Home Equity Sales Contract Act (Civ. Code, § 1695 et seq.), the 'alter ego' doctrine, and the finding that an altered deed used in pulling off the scam was void ab initio.

For the ruling, see Capon v. Monopoly Game LLC, No. A124964 (Cal. App. 1st Dist., Div. 5, March 4, 2011).

Representing the homeowner were Renee Glover Chantler (Pro Bono Counsel), Marc Belloli (Associate) and Rajiv Dharnidharka (Associate) with the Silicon Valley (East Palo Alto, California) office of DLA Piper LLP.