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THE LAW OFFICES OF TIMOTHY MCCANDLESS Timothy McCandless, Esq. (SBN 147715) 15647 Village Drive Victorville, California 92392 (760) 733-8885 Telephone (909) 494-4214 Facsimile Attorney for Plaintiffs, Dwayne Doakes and Joann Doakes

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 SUPERIOR COURT OF CALIFORNIA IN AND FOR THE COUNTY OF SAN BERNARDINO

DWAYNE DOAKES and JOANN DOAKES,

) Case No. )

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Plaintiffs, ) ) ) ) ) ) ) ) ) ) ) COMPLAINT FOR DECLARATORY RELIEF, QUIET TITLE, CANCELLATION OF DEED, AND FOR DAMAGES ARISING FROM: SLANDER OF TITLE; BREACH OF ORAL CONTRACT; FRAUD

vs.

FIRST AMERICAN TITLE COMPANY, a California Corporation, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. A business of unknown form, RECONTRUST COMPANY a business of unknown form,

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 OLYMPIA FUNDINING, INC. ) a California Corporation, ) FEDERAL NATIONAL MORTGAGE, ) a private company with a charter ) from Congress, And all persons claiming by ) through Or under such person and/or entity, ) and All persons unknown, claiming any legal) Or equitable right, estate, lien or interest ) In the property described in the complaint ) Adverse to Plaintiffs title, or any cloud ) On Plaintiffs title thereto, named as )

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Does 1 through 25, Inclusive, ) ) Defendants. ) ____________________________________)

Plaintiffs Dwyane Doakes and Joann Doakes, allege herein as follows: General Allegations

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1. At all times herein mentioned, Plaintiffs Dwayne Doakes and Joann Doakes,

were and are, residents of the City of Victorville, County of San Bernardino, State of California, and owners of the real property which constitutes the basis of the instant action, which legal description is attached hereto and incorporated into this Complaint as Exhibit A, and more

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 commonly known as 13739 Gobi Court, Victorville, California 92394, Assessors Parcel Number 3104-461-55-0-000 (hereinafter described as the SUBJECT PROPERTY). 2. At all times herein mentioned, FIRST AMERICAN TITLE COMPANY, INC.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 (hereinafter FIRST AMERICAN TITLE), was and is, a corporation existing by virtue of the laws of the State of California, and was at all times material herein, authorized to conduct business in the State of California.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 3. At all times herein mentioned, MORTGAGE ELECTRONIC REGISTRATION

SYSTEMS (hereinafter MERS), is and was, a business of unknown form, and was not authorized to conduct business in the State of California. 4. At all times herein mentioned, Plaintiffs are informed and believe and thereupon

allege that RECONTRUST COMPANY (hereinafter RECONTRUST), is and was, a rouge:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 business of unknown form illegally conducting business in the State of California in direct violation California Corporations Code sections 1502, 2204, 2205, together with California Revenue and Tax Code sections 23301, and as such all acts performed by said Defendant are void as a matter of law. 5. At all times herein mentioned, OLYMPIA FUNDING COMPANY, INC.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 (hereinafter OLYMPIA), was and is, a corporation existing by virtue of the laws of the State of California, and was at all times material herein, authorized to conduct business in the State of California. 6. At all times mentioned, Federal National Mortgage Association (hereinafter

Fannie Mae), was first established in 1938 as a government agency, in 1968 became a private,

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 shareholder-owned company with a charger from Congress requiring the Fannie Mae to support the housing finance system. It is a financial services company serving the American Home Mortgage industry. 7. Plaintiffs are ignorant of the true names and capacities of Defendants sued herein

as Does 1 through 25, Inclusive. Plaintiffs allege that each and every Doe Defendant is actually

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 and proximately liable for all damages suffered by Plaintiffs. Plaintiffs will seek leave of court to amend this complaint when the true names and capacities of said Doe Defendants have been fully ascertained. The Defendants herein named as "all persons unknown claiming any legal or equitable right, title, estate, lien, or interest in the property described in the complaint adverse to Plaintiffs' title, or any cloud on Plaintiffs' title thereto, names as Does 1 through 25, Inclusive,"

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 are unknown to Plaintiffs. Such Defendants, and each of them, claim some right, title, estate, lien, or interest in the above-described property adverse to Plaintiffs' title and such claim or claims constitute a cloud on Plaintiffs' title thereto. Such claim or claims are without any right whatsoever and these defendants have no right, title, estate, lien, or interest whatsoever in the above-described Subject Property or any part thereof.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 8. The Defendants identified in paragraphs 1 through 7, above, shall be referred to

collectively as Defendants. 9. Whenever reference is made in this Complaint to any act of any Defendant(s), that

allegation shall mean that each Defendant acted individually and jointly with the other Defendants.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 10. Any allegation about acts of any corporate or other business Defendant means that

the corporation or other business did the acts alleged through its officers, directors, employees, agents and/or representatives while they were acting within the actual or ostensible scope of their authority.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 11. At all relevant times, each Defendant committed the acts, caused or directed

others to commit the acts, or permitted others to commit the acts alleged in this Complaint. Additionally, some or all of the Defendants acted as the agent of the other Defendants, and all of the Defendants acted within the scope of their agency if acting as an agent of another.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 12. At all relevant times, each Defendant knew or realized that the other Defendants

were engaging in or planned to engage in the violations of law alleged in this Complaint. Knowing or realizing that other Defendants were engaging in or planning to engage in unlawful conduct, each Defendant nevertheless facilitated the commission of those unlawful acts. Each

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Defendant intended to and did encourage, facilitate, or assist in the commission of the unlawful acts, and thereby aided and abetted the other Defendants in the unlawful conduct. 13. At all relevant times, Defendants have engaged in a conspiracy, common

enterprise, and common course of conduct, the purpose of which is and was to engage in the

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 violations of law alleged in this Complaint. This conspiracy, common enterprise, and common course of conduct continues to the present. 14. Upon information and belief, the mortgage note has been paid in whole or in part

by one or more undisclosed third party(ies) who, prior to or contemporaneously with the closing

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 on the loan, paid the originating lender in exchange for certain unrecorded rights to the revenues arising out of the loan documents. 15. Upon information and belief and in connection with the matters the subject of

paragraph 14 above, Defendants have no financial interest in the note or mortgage.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 16. Upon information and belief, the original note was destroyed or was transferred to

a structured investment vehicle which may be located offshore, which also has no interest in the note or mortgage or revenue there under. 17. Upon information and belief, the revenue stream deriving from the note and

mortgage was eviscerated upon one or more assignments of the note and mortgage to third

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 parties and parsing of obligations as part of the securitization process, some of whom were joined as co-obligors and co-obligees in connection with the closing. 18. To the extent that Defendants have been paid on the underlying obligation or have

no legal interest therein or in the note or mortgage, or does not have lawful possession of the note or mortgage, Defendants capacity to institute foreclosure constitute a fraud upon the

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Plaintiffs, in that, they recorded a document most notably the notice of default in which they purport to have in their possession the original properly assigned note. 19. Based upon one or more of the affirmative defenses set forth above, Plaintiffs

Dwyane Doakes and Joann Doakes are entitled to a release and satisfaction of the note and mortgage and dismissal of the Foreclosure claim with prejudice.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 20. County. 21. On or about, April 11, 2007, Plaintiffs, Dwayne Doakes and Joanne Doakes, The violations of law alleged in this Complaint occurred in San Bernardino

executed a promissory note and deed of trust ("NOTE") with Defendant Olympia, which was

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 secured by the SUBJECT PROPERTY. The deed of trust is attached hereto as Exhibit B and is incorporated by this reference. 22. Plaintiffs are informed and believe and thereupon allege that subsequent to

execution of the April 11, 2007, NOTE, Defendant OLYMPIA assigned its right, title and interests in the original trustee of the NOTE and deed of trust and MERS, being the original

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 beneficiary of the NOTE and deed of trust, to Defendant FIRST AMERICAN TITLE COMPANY, INC. 23. On or about, May 1, 2008, RECONTRUST acting as an agent for MERS,

recorded a Notice of Default and Election to Sell Under Deed of Trust. A true and correct copy of the Notice of Default is attached hereto as Exhibit C and is incorporated by this reference.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24. On or about, August 5, 2008, MERS executed and recorded a Substitution of

Trustee naming RECONTRUST as the new trustee of the NOTE and deed of trust. A true and correct copy of the Substitution of Trustee is attached hereto as Exhibit D and is incorporated by this reference.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25. On or about, August 6, 2008, RECONTRUST executed and recorded a Notice of

Trustees Sale setting the date of foreclosure as August 25, 2008. A true and correct copy of the Notice of Trustees Sale is attached hereto as Exhibit E and is incorporated by this reference. 26. On or about, August 15, 2008, Defendants RECONTRUST , together with

Plaintiffs Dwayne Doakes and Joann Doakes entered into an oral forbearance agreement

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 supported by valuable consideration, entitled, Foreclosure Repayment Agreement, (hereinafter FORBEARANCE), whereby Plaintiffs were to obtain a loan from family members for $100,000.00 dollars and provide proof of said loan to Defendant RECONTRUST. Plaintiffs provided RECONTRUST with a copy of the check dated insert date in the amount of $100,000.00 and Defendants agreed to postpone the foreclosure of the SUBJECT PROPERTY.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 27. Trustees Sale. 28. Plaintiffs allege that on August 25, 2008, Defendant RECONTRUST purported to Plaintiffs allege that they did not receive the statutorily mandated Notice of

conduct a foreclosure sale of the SUBJECT PROPERTY, and that a Trustees Deed Upon Sale was conveyed, however, such conveyance was invalid, and unlawful.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 29. Plaintiffs allege that the FORBEARANCE agreement was not made a part of the

underlying NOTE, but in fact and in law was a FORBEARANCE subject to all of the statutory disclosure requirements. Plaintiff allege that said FORBEARANCE failed to include mandated disclosures as required.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 30. Plaintiffs are informed and believe and thereupon allege that the NOTE was

invalid and unenforceable due to the intentional and willful violations including but, not limited to: provisions contained in California Civil Code ' 2924b etc. et seq., California Civil Code 2924b(a), 2924b(d), 2924b(e) by failing and/or refusing to mail the Notice of Default within ten business days to Plaintiffs, by failing and/or refusing to post and mail the Notice of Default;

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 by failing and/or refusing to mail Plaintiffs the Notice of Default within one month pursuant to California Civil Code 2924b (c)(1), (2); by failing and/or refusing to properly set the sale date pursuant to California Civil Code 2924f(b); by failing and/or refusing to publish the Notice of Sale twenty days prior to the date set for sale pursuant to California Civil Code 2924f(b); by failing and/or refusing to record the Notice of Sale pursuant to California Civil Code 2924g(d);

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 failed and/or refused to repost the Notice of Sale and that the purported Trustee RECONTRUST was not a lawful entity, was not legally entitled to conduct business in the State of California, in direct violation of California Corporations Code sections 1502, 2204, 2205, together with California Revenue and Tax Code sections 23301, and as such all acts performed by said

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Defendant, including the purported conveyance of the Trustees Deed Upon Sale, are void as a matter of law. FIRST CAUSE OF ACTION QUIET TITLE (As Against All Defendants)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 31. Plaintiffs incorporates Paragraphs 1 through 30 of the General Allegations as

though such have been fully set forth herein. 32. Plaintiffs are the sole owners of certain real property as stated in Paragraph 1 of

the General Allegations.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 33. Plaintiffs Dwayne Doakes and Joann Doakes was seised by deed of title to the

SUBJECT PROPERTY on or about, February 22, 2007, which deed forms the basis of their right to claims of title in the SUBJECT PROPERTY, and which deed was recorded in the Office of the County Recorder, in the County of San Bernardino, State of California, as instrument No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2007-0236443. A true and correct copy of the within deed is attached hereto as Exhibit F and which is incorporated by this reference. 34. Plaintiff Dwayne Doakes was seised by a interspousal transfer grant deed, on or

about, March 14, 2007, which forms the basis of his sole and separate right as a married man to

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 claims of title in the SUBJECT PROPERTY, and which deed was recorded in the Office of the County Recorder, in the County of San Bernardino, State of California, as instrument No. 2007023644. A true and correct copy of the within deed is attached hereto as Exhibit G and which is incorporated by this reference.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 35. Plaintiffs are seeking to quiet title against the claims of Defendants, and each of

them, as follows: Plaintiffs seeks to invalidate any and all claims to the Subject Property pursuant to a non-judicial foreclosure sale of the Subject Property conducted on or about, August 25, 2008. 36. Plaintiffs seeks to quiet title as of February 22, 2007.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

SECOND CAUSE OF ACTION CANCELLATION OF TRUSTEE'S DEED UPON SALE (As Against All Defendants) 37. Plaintiffs reincorporate Paragraphs 1 through 30 of the General Allegations, and

Paragraphs 31 through 36, First Cause of Action, as though such have been fully set forth herein.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 38. Plaintiffs are the sole owners of certain real property as stated in Paragraph 1 of

the General Allegations. 39. Plaintiffs Dwyane Doakes and Joann Doakes were seised by deed of title to the

SUBJECT PROPERTY on or about, February 22, 2007, which deed forms the basis of their right to claims of title in the SUBJECT PROPERTY, and which deed was recorded in the Office of

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 the County Recorder, in the County of San Bernardino, State of California, as instrument No. 2007-0236443. See Exhibit F, which is incorporated by this reference. 40. Plaintiff Dwayne Doakes was seised by a interspousal transfer grant deed, on or

about, March 14, 2007, which forms the basis of his sole and separate right as a married man to claims of title in the SUBJECT PROPERTY, and which deed was recorded in the Office of the

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 County Recorder, in the County of San Bernardino, State of California, as instrument No. 2007023644. A true and correct copy of the within deed is attached hereto as Exhibit G and which is incorporated by this reference.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 41. The acts herein alleged by Defendants, and each of them, slandered Plaintiffs'

proper title in the Subject Property, and challenged Plaintiffs' rights to ownership and possession therein, and Plaintiffs seek the cancellation of the trustees deed after sale. 42. Plaintiffs have been forced to hire an attorney and expend sums for attorney's fees

to defend against the claims of ownership and rights to possession asserted by Defendants, and

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 each of them. As a proximate result of Defendants' respective violation of statutes, and/or fraud and deceit and the facts herein alleged, Plaintiffs were denied their rights to ownership and possession of the Subject Property, by reason of which Plaintiffs have been damaged in a sum the totality of which has not yet been fully ascertained, in no event is less than the jurisdictional requirements of this court, and as such is subject to proof at time of trial.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 THIRD CAUSE OF ACTION SLANDER OF TITLE (As Against All Defendants) 43. Plaintiffs reincorporate Paragraphs 1 through 30 of the General Allegations, and Paragraphs 31 through 36, Paragraphs 37 through 42 of the First and Second Causes of Action, as though such have been fully set forth herein.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 44. Plaintiffs are the sole owners of certain real property as stated in Paragraph 1 of

the General Allegations. 45. Plaintiffs Dwayne Doakes and Joann Doakes were seised by deed of title to the

SUBJECT PROPERTY on or about, February 22, 2007, which deed forms the basis of their right to claims of title in the SUBJECT PROPERTY, and which deed was recorded in the Office of

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 the County Recorder, in the County of San Bernardino, State of California, as instrument No. 2007-0236443. See Exhibit F, which is incorporated by this reference. 46. Plaintiff Dwayne Doakes was seised by a interspousal transfer grant deed, on or about, March 14, 2007, which forms the basis of his sole and separate right as a married man to claims of title in the SUBJECT PROPERTY, and which deed was recorded in the Office of the

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 County Recorder, in the County of San Bernardino, State of California, as instrument No. 2007023644. A true and correct copy of the within deed is attached hereto as Exhibit G and which is incorporated by this reference.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 47. There is in existence a certain written instruments which purport to be a Trustor's Deed Upon Sale and Grant Deed, which was conveyed from said Trustor's Deed Upon Sale. The Trustor's Deed Upon Sale is in the possession of Defendants, and each of them. 48. The written instrument alleged in Paragraph "41" was procured as follows:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 a. By an invalid sale conducted on the part of Defendants, and each of them, in

violation of statutes including, but not limited to: Plaintiffs are informed and believe and thereupon allege that the NOTE was invalid and unenforceable due to the intentional and willful violations including but, not limited to: California Civil Code ' 2924b etc. et seq., California Civil Code 2924b(a), 2924b(d), 2924b(e) by failing and/or refusing to mail the Notice of

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Default within ten business days to Plaintiffs, by failing and/or refusing to post and mail the Notice of Default; by failing and/or refusing to mail Plaintiffs the Notice of Default within one month pursuant to California Civil Code 2924b (c (1), (2); by failing and/or refusing to properly set the sale date pursuant to California Civil Code 2924f(b); by failing and/or refusing to publish the Notice of Sale twenty days prior to the date set for sale pursuant to California Civil

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Code 2924f(b); by failing and/or refusing to record the Notice of Sale pursuant to California Civil Code 2924g(d); and that the purported Trustee RECONTRUST was not a lawful entity, was not legally entitled to conduct business in the State of California, in direct violation of California Corporations Code sections 1502, 2204, 2205, together with California Revenue and

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Tax Code sections 23301, and as such all acts performed by said Defendant are void as a matter of law; b. By the fraud Defendants, and each of them.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 49. Plaintiffs allege that Defendants, and each of them, willfully, wrongfully and

without justification, and without privilege conducted an invalid foreclosure sale against the Plaintiffs' SUBJECT PROPERTY, thereby, slandering Plaintiffs title thereto. 50. The Trustee's Deed Upon Sale, was and is, false and caused doubt to be cast on

Plaintiffs' title to the property described above.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 51. The aforementioned Instrument directly impaired the Plaintiffs' right to

possession and ownership of the Subject Property. 52. Furthermore, the aforementioned acts of Defendants, and each of them, were

motivated by oppression, fraud, malice in that Defendants, and each of them, by their respective

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 acts, omissions, nonfeasance, misfeasance and/or malfeasance executed an invalid foreclosure sale of the Plaintiffs' SUBJECT PROPERTY, in order to deny Plaintiffs of their rights of possession and ownership, whereupon, Plaintiffs seek the imposition of exemplary and punitive damages in an amount subject to proof at time of trial. FOURTH CAUSE OF ACTION

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 BREACH OF ORAL CONTRACT (As Against All Defendants) 53. Plaintiffs reincorporate Paragraphs 1 through 30 of the General Allegations, and

Paragraphs 31 through 36, Paragraphs 37 through 42 and Paragraphs 43 through 52 of the First, Second and Third Causes of Action, as though such have been fully set forth herein.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 54. On or about, August 15, 2008, Plaintiffs and Defendants, by and through its

agent, entered into an oral contract whereby, Plaintiffs would pay the arears on the NOTE, and Defendants, and each of them, agreed on its part to postpone the then pending non-judicial foreclosure proceedings. Time was not of the essence in the oral contract, rather, the parties

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 agreed that a reasonable amount of time would be allowed for the performance of the oral contract, which was to be less than one year. 55. Plaintiffs alleges that Defendants, and each of them, unilaterally reaffirmed the validity of the oral agreement by executing written agreement in accordance with the statutory mandates of California Civil Code ' 2924 etc et seq.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

56.

Plaintiffs alleges that they performed all of the terms and conditions on their part

to be performed, except for those terms and conditions which were excused by the acts, omissions, nonfeasance, misfeasance and/or malfeasance of Defendants, and each of them, or their agents. Plaintiffs further allege that but for the acts, omissions, nonfeasance, misfeasance

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 and malfeasance of Defendants, and each of them, either individually and/or collectively, Plaintiffs would have had the ability to tender all amounts being claimed by Defendants, whether lawful or unlawful, and that any obligation for her to tender such claims was excused and/or waived, by the conduct of the aforementioned Defendants.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 57. Plaintiffs allege that on or about, August 25, 2008, Defendants, and each of them,

breached to the terms of the oral contract by causing the sale of the SUBJECT PROPERTY. 58. Plaintiffs allege that they has actually and proximately suffered damages arising

from the breach of the oral contract, the totality of which has not yet been fully ascertained, but, in no event is less than the jurisdictional requirements of this court.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

FIFTH CAUSE OF ACTION FRAUD (As Against All Defendants) 59. Plaintiffs reincorporate Paragraphs 1 through 30 of the General Allegations, and

Paragraphs 31 through 36, Paragraphs 37 through 42, Paragraphs 43 through 52 and Paragraphs

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 53 through 58, of the First, Second, Third and Fourth Causes of Action, as though such have been fully set forth herein. 60. Plaintiffs alleges on information and belief that Defendants, and each of them,

are engaging in the business of real estate brokerage without complying with the proper statutory registration requirements and/or licensing to conduct their business.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

61.

Plaintiffs are informed and believe and thereupon alleges that August 15, 2008,

Plaintiffs entered into an oral contract with Defendants, and each of them, whereby, Defendants would postpone foreclosure of the SUBJECT PROPERTY and in return, Plaintiffs would provide proof of $100,000.00 loan and make payments against the NOTE.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 62. Plaintiffs are informed and believe and thereupon alleges that Defendants, and

each of them, represented that once proof of the $100,000.00 loan was provided to Defendants Plaintiffs would avoid foreclosure of their home. 63. Plaintiffs is informed and believes and thereupon alleges that at the time that

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 made said representations, Defendants knew that they were false and never intended not to foreclose upon the SUBJECT PROPERTY. 64. Plaintiffs are informed and believe and thereupon allege that Defendants, and

each of them, intended to take the payments made by Plaintiff together with any amount of equity then existing in the SUBJECT PROPERTY, and to proceed with the pending foreclosure

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 of Plaintiffs' SUBJECT PROPERTY, in order that Defendants, and each of them, would obtain ownership and possession of Plaintiffs SUBJECT PROPERTY at the foreclosure sale, and acquire all of Plaintiffs equity, then existing in the SUBJECT PROPERTY.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 65. Plaintiffs are informed and believe and thereupon alleges that Defendants, and

each of them, conspired to defraud Plaintiffs of their right to ownership and possession in the SUBJECT PROPERTY, and never had any intention of crediting Plaintiffs for their payments. 66. them. Plaintiffs reasonably relied upon the representations of Defendants, and each of

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 67. Plaintiffs are informed and believe and thereupon allege that Defendants, and

each of them, fully perfected their deceitful scheme by conducting and invalid foreclosure sale conducted on or about, August 25, 2008. 68. Plaintiffs are informed and believe and thereupon allege that Defendants, and

each of them, claim and ownership interest in the SUBJECT PROPERT, in furtherance of their

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 deceitful scheme to defraud Plaintiffs out of her right to ownership and possession of the SUBJECT PROPERTY.

69.

Plaintiffs have been forced to hire an attorney and expend sums for attorney's fees

to defend against the claims of ownership and rights to possession asserted by Defendants, and

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 each of them. As a proximate result of Defendants' respective violation of statutes, and/or fraud and deceit and the facts herein alleged, Plaintiffs were denied their rights to ownership and possession of the SUBJECT PROPERTY, by reason of which Plaintiffs has been damaged in a sum the totality of which has not yet been fully ascertained, in no event is less than the jurisdictional requirements of this court, and as such is subject to proof at time of trial.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 70. In doing the acts herein alleged, Defendants, and each of them, acted with

oppression, fraud, and malice, and Plaintiffs are entitled to the recovery of punitive damages in an amount subject to proof at time of trial.

SIXTH CAUSE OF ACTION DECLARATORY RELIEF

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 (As Against All Defendants) 71. An actual conflict has arisen whereby Plaintiffs allege that Defendants, and each

of them, engaged in repeated violations of Federal and State (California) law, violating provisions contained in California Civil Code ' 2924b etc. et seq., California Civil Code

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2924b(a), 2924b(d), 2924b(e) by failing and/or refusing to mail the Notice of Default within ten business days to Plaintiffs, by failing and/or refusing to post and mail the Notice of Default; by failing and/or refusing to mail Plaintiffs the Notice of Default within one month pursuant to California Civil Code 2924b (c)(1), (2); by failing and/or refusing to properly set the sale date pursuant to California Civil Code 2924f(b); by failing and/or refusing to publish the Notice of

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Sale twenty days prior to the date set for sale pursuant to California Civil Code 2924f(b); by failing and/or refusing to record the Notice of Sale pursuant to California Civil Code 2924g(d); failed and/or refused to repost the Notice of Sale after three postponements, and that the purported Trustee RECONTRUST was not a lawful entity, was not legally entitled to conduct business in the State of California, in direct violation of California Corporations Code sections

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1502, 2204, 2205, together with California Revenue and Tax Code sections 23301, and as such all acts performed by said Defendant, including the purported conveyance of the Trustees Deed After Sale, are void as a matter of law.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 72. Plaintiffs desire a judicial determination of their rights and duties under the NOTE

and FORBEARANCE agreement and deed of trust and the rights and duties of the respective Defendants, and each of them.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 73. A judicial determination is necessary in order that the parties may determine their

rights and duties under the instruments alleged herein, and cannot do so without an appropriate and lawful determination of this court.

WHEREFORE, Plaintiffs pray for judgment as follows:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 For The First Cause Of Action: 1. For a judgment of quiet title that Plaintiffs Dwyane Doakes and Joann Doakes are

the owners in of the SUBJECT PROPERTY, as of February 22, 2007, and that defendants have no interest in the property adverse to the Plaintiffs';

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2. For a judgment that the Trustor's Deed Upon Sale granted to Defendants, and

each of them, be declared void; 3. 4. 5. For costs of suit incurred herein; For reasonable attorney's fees subject to proof at time of trial; and For such other and further relief as the court may deem proper.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

For The Second Cause Of Action: 1. That the NOTE, Deed of Trust, and Trustor's Deed After Sale granted by

RECONTRUST, be declared void;

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2. That the lawful Trustor execute a full reconveyance in the Subject Property in the

name of Plaintiffs Dwyane Doakes and Joann Doakes; 3. For damages, in the event that Defendants fail to execute a full reconveyance of

the Subject Property or rescind the Trustor's Deed After Sale pursuant to the judgment, in a sum subject to proof at time of trial;

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 4. 5. 6. For costs of suit incurred herein; For reasonable attorney's fees subject to proof at time of trial; For such other and further relief as the court may deem just and proper.

For The Third Cause Of Action:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1. For compensatory damages in an amount the totality of which has not yet been

determined, and as such is subject to proof at time of trial; 2. 3. For punitive damages in an amount subject to proof at time of trial; For costs of suit incurred herein;

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 4. 5. For reasonable attorney's fees subject to proof at time of trial; For such other and further relief as the court may deem just and proper.

For The Fourth Cause Of Action: 1. 2. For compensatory damages subject to proof at time of trial; For costs of suit incurred herein;

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 3. 4. For reasonable attorney's fees subject to proof at time of trial; For such other and further relief as the court may deem just and proper.

For The Fifth Cause Of Action: 1. For compensatory damages in an amount the totality of which has not yet been

determined, and as such is subject to proof at time of trial;

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2. 3. 4. 5. For costs of suit incurred herein; For punitive damages in an amount subject to proof at time of trial; For reasonable attorney's fees subject to proof at time of trial; For such other and further relief as the court may deem just and proper.

For The Sixth Cause of Action:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1. For a declaration that the promissory NOTE and deed of trust, FORBEARANCE

agreement are void and a nullity; 2. For a declaration that the nonjudicial foreclosure sale of the Plaintiffs' property is

void and a nullity; 3. For costs of suit;

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 4. 5. Dated: 7/21/11 For reasonable attorney's fees subject to proof; For such other and further relief as the Court may deem just and proper. THE LAW OFFICES OF TIMOTHY MCCANDLESS By _____________________________

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Timothy McCandless, Attorney for Plaintiffs Dwyane Doakes and Joann Doakes

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 LEGAL DESCRIPTION 13739 GOBI COURT VICTORVILLE, CALIFORNIA APN: 3104-461-55-0-000

THE LAND REFERRED TO IN THIS GUARANTEE IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN BERNARDINO, CITY OF VICTORVILLE, AND IS DESCRIBED AS FOLLOWS:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
LOT 190 OF TRACT NO. 16197-2, IN THE CITY OF VICTORVILLE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 290, PAGE(S) 1 THROUGH 6, INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTION OF THE AFOREDESCRIBED PROPERTY WHICH UNDERLIES A PLANE PARALLEL TO AND 250.00 FEET BELOW THE SURFACE THEREOF, WHICH PORTION IS HEREINAFTER REFERRED TO AS SAID LAND HALF OF ALL OIL GAS PETROLEUM AND OTHER HYDROCARBON SUBSTANCES AND THE MINERALS IN, UNDER OR RECEOVERABLE FROM SAID LAND TOGETHER WITH THE RIGHT TO INJECT OR INTRODUCE FROM TIME TO TIME, STORE THEREIN AND SUBSEQUENTLY REMOVE FROM SAID LAND HALF OF ANY OIL, GAS, PETROLEUM, AND OTHER HYDROCARBON SUBSTANCES, AND MINERALS, TOGETHER WITH RIGHTS OF WAY, EASEMENTS AND SERVITUDES IN AND THROUGH SAID

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
LAND FOR THE PURPOSE OF EXERCISING THE RIGHTS HEREIN RESERVED INCLUDING, BUT NOT LIMITED TO, THE RIGHT FROM TIME TO TIME TO DRILL WELL HOMES, TO CASE THE SAME AND OTHERWISE TO COMPLETE AND MAINTAIN WELLS INTO AND THROUGH SAID LAND FROM SURFACE LOCATIONS OUTSIDE THE PROPERTY HEREIN CONVEYED PROVIDED HOWEVER THAT THE RIGHTS HEREIN RESERVED DO NOT INCLUDE THE RIGHT TO ENTER UPON THE SURFACE OVERLYING SAID LAND AS RESERVED IN THE DEED FROM ELIZABETH C. BREHM AND SHIRLEY I. MCDERMOTT, TRUSTEES RECORDED SEPTEMBER 22, 1986 AS INSTRUMENT NO. 86-273482, OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM A QUARTER UNDIVIDED INTEREST IN ALL OIL, GAS AND OTHER HYDROCARBONS IN AND UNDER THE REAL PROPERTY DESCRIBED, TOGETHER WITH THE RIGHT TO EXPLORE, DEVELOP, EXTRACT AND REMOVE THE SAME THEREFROM BY SLANT DRILLING OR THE WHIPSTOCKED METHOD OF OPERATION, WITH DERRICKS OR DRILLINGS

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
LOCATED OUTSIDE OF THE BOUNDARIES OF THE LAND DESCRIBED BELOW, PROVIDED, HOWEVER, THAT THERE IS NO RIGHT OF ENTRY O THE SURFACE AND/OR SUBSURFACE OF SAID DESCRIBED PROPERTY TO A DEPTH OF 500 FEET BELOW THE SURFACE OF SAID DESCRIBED PROPERTY, AS CONVEYED TO VICTORVILLE ASSOCIATES, A CALIFORNIA GENERAL PARTNERSHIP, CONSISTIN OF S.G. ENTERPRISES, INC., A CALIFORNIA CORPORATION, AND BRIAN CATALDE DEVELOPMENTS, A CALIFORNIA CORPORATION, BY QUITCLAIM DEED RECORDED MARCH 18, 1988 AS INSTRUMENT/FILE NO. 88-081511, OF OFFICIAL RECORDS.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

EXHIBIT A