Nwosu v. Uba, H026182.

• Decision Date: 01 October 2004
• Docket Number: No. H026182.,H026182.
• Citation: 122 Cal.App.4th 1229,19 Cal.Rptr.3d 416
• Court: California Court of Appeals Court of Appeals
• Parties: Ogochuku C. NWOSU, Plaintiff, Cross-defendant and Appellant, v. Nwadinaume Felly UBA, Defendant, Cross-Complainant and Respondent.

19 Cal.Rptr.3d 416

122 Cal.App.4th 1229

Ogochuku C. NWOSU, Plaintiff, Cross-defendant and Appellant, v. Nwadinaume Felly UBA, Defendant, Cross-Complainant and Respondent.

No. H026182.

Court of Appeal, Sixth District.

October 1, 2004.

Ogochuku C. Nwosu, in pro. per. for Plaintiff, Cross-defendant and Appellant.

Charles F. Cummins, Jr., for Defendant, Cross-complainant and Respondent.

WALSH, J.^*

Oguchuku Nwosu and Nwadinaume Uba — both originating from Nigeria and who were friends for over 15 years — entered into a business transaction in 1995 involving Nwosu's residence. Over four years later, a dispute arose concerning the nature of that transaction. Uba claimed that Nwosu sold the residence to her for $200,000 because he had outstanding obligations and needed capital for his business. A deed, sales agreement, and escrow instructions supported Uba's contention. Nwosu, however, claimed that the transaction was, in reality, a refinancing arrangement under which Uba took title, subject to the parties' oral agreement that, upon demand, she would reconvey the property to Nwosu at its original price.

Uba filed an unlawful detainer action to obtain possession of the premises. Nwosu filed a separate action to resolve the controversy concerning the transaction. His suit alleged several equitable claims, as well as a claim for fraud. Uba cross-complained, seeking to quiet title to the property and seeking recovery of money claimed to be due from loans made to Nwosu.

The court below proceeded first with a six-day bench trial of the equitable claims, expressly reserving a "second phase" jury trial of the legal claims, "depending on . . . the ruling . . . on the equitable issues." The court found in favor of Uba; it concluded that the disputed transaction was a sale, not a refinancing transaction disguised as a sale. Upon Uba's application, the court thereafter entered judgment, holding that there was no basis for a jury trial on Nwosu's fraud claim.

Nwosu appealed, claiming that the trial court's entry of judgment deprived him of his right to a jury trial. He also challenged the sufficiency of the evidence in support of certain findings by the court and the court's exclusion of impeachment evidence. We conclude that the trial court acted properly by conducting a trial of the equitable issues first and that its disposition of the equitable claims left nothing to be tried by a jury. Nwosu has failed to satisfy even minimal procedural requirements necessary to advance his remaining claims of error, and we therefore deem them to have been waived. We will affirm the judgment.

FACTS

Nwosu emigrated to the United States from Nigeria in 1973. Uba, also from Nigeria, emigrated to this country in 1979. Nwosu and Uba met in 1979, and became friends. Nwosu described the relationship as "something of the nature of . . . brother and sister." Uba made several loans to Nwosu over the years, including cash loans.¹

This dispute concerned real property located at 4559 Aptos Avenue, San Jose, California (Property). The Property was acquired by Nwosu in 1980. In a transaction that closed escrow on March 28, 1995, title to the Property passed from Nwosu to Uba (Transaction). Nwosu contends that the Transaction was a disguised refinancing arrangement in which he retained equitable title; Uba contends that the Transaction was a sale of the Property.²

In or about December 1994, Nwosu visited Uba at her home in Union City. He told her that he was in debt — including money owed to the I.R.S. — and that he wanted to sell the Property "to offset some of these debts."³ Nwosu suggested that Uba invest money that she had received from refinancing her own home by purchasing the Property from him. Uba asked him to think about it. Several days later, Nwosu told Uba that he still wanted to sell the Property. He again suggested that Uba buy the Property, and that he wanted to rent it because he did not want his friends or family to know that he had sold it. Uba told Nwosu that this was acceptable.

One day later, Nwosu showed Uba some newspapers that indicated prices of homes in the area of the Property ranging from $181,000 to $189,000; he stated that he thought the Property had a higher value. He later told Uba that he had obtained an appraisal of the Property at $200,000. Uba agreed to buy the Property from Nwosu for $200,000. At the same time, the parties agreed that Nwosu could remain in possession of the Property after it was sold, so long as he paid the mortgage, taxes, insurance, and utilities.

On January 20, 1995, the parties signed a purchase and sale agreement involving the sale of the Property for $200,000; the agreement listed Nwosu as the seller and Uba as the buyer. The handwritten portions were written by Nwosu.

In January or February 1995, Uba and Nwosu went to S & L Home Loans. Nwosu made the arrangements for Uba to meet Jamal Rabbani, who assisted Uba in obtaining a loan to buy the Property.

Uba and Nwosu also signed joint escrow instructions dated March 16, 1995; the document identified Uba and Nwosu as buyer and seller, respectively. On the same day, Nwosu executed a grant deed conveying his interest in the Property to Uba.

On or about March 27, 1995, Uba obtained a cashier's check payable to Chicago Title Company in the amount of $45,286.78. Nwosu advised Uba of the amount, and Uba delivered the check to Nwosu, who told her that he would take it to the title company. Uba financed the balance of the Transaction with a loan in the sum of $160,000.

Escrow closed and the deed in favor of Uba was recorded on March 28, 1995. After payment of closing costs and amounts due to Nwosu's prior lender, Nwosu received a check through escrow in the amount of $143,689.51.

Approximately two weeks after close of escrow, Nwosu gave Uba a cashier's check in the amount of $46,287.78. This check was in partial repayment of loans Uba previously made to Nwosu that totaled $80,000.⁴

After the Transaction, Nwosu continued to occupy the Property under the rental arrangement described above. In the years between 1995 and 1999, Nwosu allowed a number of mortgage and tax delinquencies against the Property to accrue. There was a delinquent tax obligation in late 1995. Nwosu was behind in the mortgage payments in 1996, which resulted in the initiation of foreclosure proceedings. Foreclosure was averted ultimately through payment of over $14,000 to the lender in April 1997. There were other occasions after this instance in which Uba was notified that Nwosu had allowed the loan to become delinquent.

In or about late October 1999, Nwosu received a letter from Uba's attorney. In that letter, Nwosu was advised that he would need to vacate the Property by January 1, 2000, unless the parties entered into a valid and enforceable agreement for Nwosu's purchase of the Property. Up until that point, Nwosu had never told Uba that he owned the Property, that the Transaction was a refinance rather than a sale, or that he wanted her to deed the Property back to him.

In early 2000, Nwosu was served with a summons and complaint for unlawful detainer concerning the Property. The unlawful detainer was filed in Santa Clara County Superior Court (case no. DC00 390835, limited jurisdiction). Nwosu contested the matter, inter alia, on the grounds that there was no landlord-tenant relationship between the parties and that he had always been the actual owner of the Property. The case proceeded to trial, and a judgment for possession of the Property in favor of Uba was entered in the unlawful detainer proceeding on June 6, 2000.

PROCEDURAL HISTORY

Nwosu initiated this action against Uba on May 15, 2000. He filed a second amended complaint on December 4, 2000 (complaint). In his complaint, Nwosu alleged six causes of action against Uba: (1) for specific performance of contract requiring Uba to quitclaim the Property to Nwosu; (2) to quiet title against Uba's claims to the Property; (3) for declaratory relief (adjudicating the rights of the parties relative to the competing claims of ownership in the Property); (4) to foreclose an equitable lien in Nwosu's favor relative to the Property; (5) for injunctive relief to prevent Uba from evicting Nwosu from the Property; and (6) for fraud in connection with Uba's alleged promise in 1995 that if Nwosu deeded apparent title to the Property to Uba, she would convey title back to Nwosu upon his demand therefor.

The essential factual allegation underlying the six claims was that, on or about March 28, 1995, Nwosu and Uba entered into an oral agreement under which Nwosu would refinance the Property with Uba's cooperation; the Property would be deeded to Uba in exchange for $1,000; Nwosu would pay all costs associated with the Property and "would continue to possess and own all equitable and legal interests" in the Property; and Uba would reconvey the Property to Nwosu "within a reasonable time upon demand."

Uba filed a cross-complaint against Nwosu. She alleged four causes of action: (1) to quiet title in her name to the Property; (2) for money lent by Uba in the approximate sum of $25,700; (3) for money paid by Uba on Nwosu's behalf in connection with curing defaults on a loan secured by a deed of trust against the Property (the approximate amount due being $16,800); and (4) for negligence in connection with Nwosu's failure to make loan payments required of him.

The case proceeded to trial on February 18, 2003.⁵ At the outset, the court announced that it would try in the first phase the equitable issues (first through fourth causes of action of the complaint⁶ and first cause of action of the cross-complaint). It stated that a jury trial on Nwosu's fraud claim (i.e., the "second phase") would follow, "depending on what the ruling is on the equitable issues."⁷

The court heard testimony and argument over six trial days. Following the trial and submission of the equitable claims, the court issued a lengthy tentative decision,...