Brown v. Superior Court

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California's compulsory joinder statute, Code of Civil Procedure section 389, applied when a fiduciary relationship exists between the plaintiff and the persons for whose benefit the action is prosecuted. Plaintiff obtained assignments from over a thousand borrowers that transferred 100 percent interest in causes of action relating to their home loans and a 5 percent ownership interest in the real estate securing the home loans. Plaintiff then filed suit against various entities involved in originating, servicing, or enforcing those loans. Plaintiff subsequently filed a petition for writ of mandate to challenge the trial court's order requiring joinder of the borrowers under section 389. In the published portion of the opinion, the Court of Appeal held that plaintiff had no fiduciary relationship with the borrowers. Because the assignments were for the mutual benefit of plaintiff and the borrowers, the court held that section 369, subdivision (a)(3) did not apply and did not authorize plaintiff to proceed without joining the borrowers. Accordingly, the court denied the petition for writ of mandate and lifted the stay. View "Brown v. Superior Court" on Justia Law