(a)In the event that a trustee under a deed of trust is named in an action or proceeding in which that deed of trust is the subject, and in the event that the trustee maintains a reasonable belief that it has been named in the action or proceeding solely in its capacity as trustee, and not arising out of any wrongful acts or omissions on its part in the performance of its duties as trustee, then, at any time, the trustee may file a declaration of nonmonetary status. The declaration shall be served on the parties in the manner set forth in Chapter 5 (commencing with Section 1010) of Title 14 of the Code of Civil Procedure.
(b)The declaration of
nonmonetary status shall set forth the status of the trustee as trustee under the deed of trust that is the subject of the action or proceeding, that the trustee knows or maintains a reasonable belief that it has been named as a defendant in the proceeding solely in its capacity as a trustee under the deed of trust, its reasonable belief that it has not been named as a defendant due to any acts or omissions on its part in the performance of its duties as trustee, the basis for that knowledge or reasonable belief, and that it agrees to be bound by whatever order or judgment is issued by the court regarding the subject deed of trust.
(c)The parties who have appeared in the action or proceeding shall have 15 days from the service of the declaration by the trustee in which to object to the nonmonetary judgment status of the trustee.
Any objection shall set forth the factual basis on which the objection is based and shall be served on the trustee.
(d)In the event that no objection is served within the 15-day objection period, the trustee shall not be required to participate any further in the action or proceeding, shall not be subject to any monetary awards as and for damages, attorneys’ fees or costs, shall be required to respond to any discovery requests as a nonparty, and shall be bound by any court order relating to the subject deed of trust that is the subject of the action or proceeding.
(e)In the event of a timely objection to the declaration of nonmonetary status, the trustee shall thereafter be required to participate in the action or proceeding.
Additionally, in the
event that the parties elect not to, or fail to, timely object to the declaration of nonmonetary status, but later through discovery, or otherwise, determine that the trustee should participate in the action because of the performance of its duties as a trustee, the parties may file and serve on all parties and the trustee a motion pursuant to Section 473 of the Code of Civil Procedure that specifies the factual basis for the demand. Upon the court’s granting of the motion, the trustee shall thereafter be required to participate in the action or proceeding, and the court shall provide sufficient time prior to trial for the trustee to be able to respond to the complaint, to conduct discovery, and to bring other pretrial motions in accordance with the Code of Civil Procedure.
(f)Upon the filing of the declaration of nonmonetary status, the time
within which the trustee is required to file an answer or other responsive pleading shall be tolled for the period of time within which the opposing parties may respond to the declaration. Upon the timely service of an objection to the declaration on nonmonetary status, the trustee shall have 30 days from the date of service within which to file an answer or other responsive pleading to the complaint or cross-complaint.
(g)For purposes of this section, “trustee” includes any agent or employee of the trustee who performs some or all of the duties of a trustee under this article, and includes substituted trustees and agents of the beneficiary or trustee.
(h)A fee shall not be charged for the filing of a declaration of nonmonetary status pursuant to this section.
Notes of Decisions
Bae v. T.D. Serv. Co. of Arizona, 245 Cal. App. 4th 89 (Cal. Ct. App. 2016).
“Civil Code section 2924l, by its plain language, excuses a trustee from participation in an action after an unchallenged declaration of nonmon-etary interest has been filed, subject to limited qualifications, and shields that trustee from liability for monetary damages.”
Felisa Todd v. Rocket Mortg., LLC, No. 5:23-cv-00031 (C.D. Cal. Feb. 15, 2023).
· cites it 5× “Moreover, California Civil Code § 2924l permits a trustee to file a declaration of non-monetary status if it is named in an action concerning a deed of trust, and it has a reasonable belief that it has been named solely in its capacity as trustee, and not as a result of any…”
Robinson v. Clear Recon Corp, No. 2:20-cv-01874 (E.D. Cal. Jan. 27, 2021).
· cites it 3× “22 Plaintiff filed the present action in this court against defendants Wells Fargo and CRC on 23 September 17, 2020, challenging the nonjudicial foreclosure and subsequent sale of her home.”
(PS) Nieto v. Caliber Home Loans, Inc., No. 2:20-cv-00422 (E.D. Cal. Aug. 10, 2022).
· cites it 2× “24 In response, defendants argued that because MTC filed a declaration of non-monetary 25 status pursuant to California Civil Code § 2924l, it is a nominal party and therefore its citizenship 26 should be ignored in assessing whether the parties are diverse.”
Satre v. Wells Fargo Bank, No. A131102 (Cal. Ct. App. Jan. 16, 2014).
· cites it 3× “Second, they argue the court exceeded its jurisdiction when it vacated a default as to defendant First American Loanstar Trustee Services (Loanstar), which had previously filed a declaration of nomonetary status as a trustee pursuant to Civil Code section 2924l. Third, they…”
Henschel v. Mortg. Elec. Reg. Syst., No. B248487 (Cal. Ct. App. June 11, 2014).
· cites it 2× “filed a Declaration of Nonmonetary Status pursuant to Civil Code, § 2924l, subds. (a) and (b). Consequently, it is not participating in this appeal.”
Torigian v. WT Capital Lender Servs., No. F068393 (Cal. Ct. App. June 24, 2015).
· cites it 2× “) Civil Code section 2924l authorizes the filing of a declaration of nonmonetary status in an action against the trustee under a deed of trust.”
Torigian v. WT Capital Lender Servs., No. F068393M (Cal. Ct. App. July 15, 2015).
· cites it 2× “) Civil Code section 2924l authorizes the filing of a declaration of nonmonetary status in an action against the trustee under a deed of trust.”
Richard Khan v. Specialized Loan Servicing LLC, No. 20-16781 (9th Cir. Aug. 25, 2021).
“]”); see also Cal. Civ. Code § 2924l(a) & (d) (allowing trustees to declare non-monetary status and granting that status if the declaration is not objected to).”
Michael Culross v. Nationstar, No. 2:19-cv-04101 (C.D. Cal. Sept. 13, 2019).
“Cal. Civ. Code § 2924l(d). 15 On May 10, 2019, Nationstar removed this action based on federal diversity 16 jurisdiction.”
(PS) Nieto v. Caliber Home Loans, Inc., No. 2:20-cv-00422 (E.D. Cal. Aug. 23, 2022).
“(“MTC”) is a nominal 22 party that should not be considered in assessing diversity jurisdiction; the notice states that MTC 23 filed a declaration of non-monetary status under California Civil Code § 2924l. Id. at 3-4.”
Cal. Civil Code § 2924l(a): 1 case
Richard Khan v. Specialized Loan Servicing LLC, No. 20-16781 (9th Cir. Aug. 25, 2021).
“]”); see also Cal. Civ. Code § 2924l(a) & (d) (allowing trustees to declare non-monetary status and granting that status if the declaration is not objected to).”
Cal. Civil Code § 2924l(d): 2 cases
Michael Culross v. Nationstar, No. 2:19-cv-04101 (C.D. Cal. Sept. 13, 2019).
“Cal. Civ. Code § 2924l(d). 15 On May 10, 2019, Nationstar removed this action based on federal diversity 16 jurisdiction.”
Cal. Civil Code § 2924l(e): 2 cases
Robinson v. Clear Recon Corp, No. 2:20-cv-01874 (E.D. Cal. Jan. 27, 2021).
“22 Plaintiff filed the present action in this court against defendants Wells Fargo and CRC on 23 September 17, 2020, challenging the nonjudicial foreclosure and subsequent sale of her home.”
(PS) Nieto v. Caliber Home Loans, Inc., No. 2:20-cv-00422 (E.D. Cal. Aug. 10, 2022).
“24 In response, defendants argued that because MTC filed a declaration of non-monetary 25 status pursuant to California Civil Code § 2924l, it is a nominal party and therefore its citizenship 26 should be ignored in assessing whether the parties are diverse.”
Cal. Civil Code § 2924l(g): 1 case
Robinson v. Clear Recon Corp, No. 2:20-cv-01874 (E.D. Cal. Jan. 27, 2021).
“22 Plaintiff filed the present action in this court against defendants Wells Fargo and CRC on 23 September 17, 2020, challenging the nonjudicial foreclosure and subsequent sale of her home.”
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