Pioneer Construction, Inc. (Pioneer), appeals from a judgment entered for defendants Global Investment Corp. (Global) and Su-Chin Chen Tsou (Tsou) in Pioneer's action for foreclosure of mechanic's liens recorded against property owned by a debtor in bankruptcy, Oakridge Homes LLC (Oakridge). Global and Tsou purchased Oakridge's property at a trustee's sale held after relief from the automatic stay was obtained in Oakridge's bankruptcy proceedings. The trial court sustained defendants' demurrer on the grounds the recording of the mechanic's liens against the property while Oakridge's bankruptcy was pending violated the automatic stay of the United States Bankruptcy Code (11 U.S.C. § 362). We reverse, finding the 90-day period for foreclosing on Pioneer's mechanic's liens under Civil Code section 3144 was tolled during the pendency of the bankruptcy proceedings pursuant to the United States Bankruptcy Code (11 U.S.C. § 108(c)).
In March 2005, Pioneer and Oakridge entered into an agreement pursuant to which Pioneer agreed to perform construction services on 19 lots owned by Oakridge located on Old Stone Way in Stevenson Ranch (Property). Pioneer performed its part of the agreement, but Oakridge failed to pay Pioneer sums due it for the construction project.
On April 17, 2008, Pioneer recorded a mechanic's lien in the Los Angeles County Registrar-Recorder/County Clerk's office against the Property in the amount of $2,471,332.06, listing Oakridge as the debtor, and listing Nasir Eftekhar, Jin Shen, and Benjamin Zhu as the owners of the property.
On June 13, 2008, Oakridge filed for bankruptcy under chapter 11.
On January 29, 2009, Pioneer recorded a second mechanic's lien in the Los Angeles County Registrar-Recorder/County Clerk's office in the amount of $2,669,832.06, listing Oakridge as the debtor and David Zhen, Benjamin Zhu, Nasir Eftekhar, and Simon Thomas Homes, Inc., as the owners of the property.
On April 15, 2009, Pioneer filed a "Notice of Perfection of Security Interest" in Oakridge's chapter 11 proceedings, asserting a lien of $2,669,832.06, and attaching the mechanic's lien recorded January 29, 2009.
In May or July 2009, Cathay Bank and Global obtained relief from the automatic stay in Oakridge's bankruptcy and sold the property at a trustee's sale on August 25, 2009, to defendant Tsou.
Pioneer filed a complaint to foreclose its two mechanic's liens on November 12, 2009, stating two causes of action, one for each lien.
Global and Tsou demurred to the complaint, and filed a motion to expunge the lis pendens, based on in invalidity of the two mechanic's liens. On March 11, 2010, on the eve of the hearing on Global and Tsou's demurrer, Pioneer filed its first amended complaint for foreclosure of the two mechanic's liens. On March 16, 2010, the trial court granted the motion to expunge the lis pendens.
Pioneer opposed, contending that the 90-day period of Civil Code section 3144 was tolled by the pendency of Oakridge's bankruptcy proceedings, and thus the 90-day period had not elapsed; rather, the 56 days prebankruptcy were not included in the computation, making its complaint filed 79 days after the trustee's sale timely. Furthermore, it argued that the notice of perfection it filed perfected the lien recorded January 29, 2009, and preserved the lien until such time as the property was no longer in the bankruptcy proceeding.
In reply, defendants contend that Pioneer admitted that the second mechanic's lien was void because it stated in its opposition to the motion to expunge lis pendens that the lien was a "nullity" and should be "disregarded."
The trial court sustained the demurrer without leave to amend and entered judgment for defendants.
Pioneer argues the trial court erred in concluding that its January 29, 2009 lien was void and violated the automatic stay, and its foreclosure action filed in November 2009 was untimely. It contends the recording of a mechanic's lien does not violate the automatic stay of title 11 United States Code section 362, which specifically permits the recordation of such liens; furthermore, its foreclosure action was timely because Oakridge's bankruptcy proceeding tolled the action until the Property ceased to be property of the estate by virtue of the trustee's sale, and its foreclosure action was commenced within 79 days of that date.
Respondents contend the doctrine of invited error precludes all of Pioneer's arguments on appeal because it repeatedly acknowledged during the proceedings in the trial court that the second mechanic's lien was "void" and a "nullity." Furthermore, they contend Pioneer lacks a valid contractor's license and may not pursue this action and the second mechanic's lien was void because it was recorded during Oakridge's bankruptcy proceedings.
On appeal from a judgment of dismissal following an order sustaining a demurrer, "we examine the complaint de novo to determine whether it alleges facts sufficient to state a cause of action under any legal theory, such facts being assumed true for this purpose." (McCall v. PacifiCare of Cal., Inc. (2001) 25 Cal.4th 412, 415 [106 Cal.Rptr.2d 271, 21 P.3d 1189].) We assume the truth of the properly pleaded factual allegations, facts that can be
The invited error doctrine is an application of the estoppel principle that where a party by his or her conduct induces the commission of error, he or she is estopped from asserting it as a ground for reversal on appeal. (Geffcken v. D'Andrea (2006) 137 Cal.App.4th 1298, 1312 [41 Cal.Rptr.3d 80].) However, "the invited error doctrine requires affirmative conduct demonstrating a deliberate tactical choice on the part of the challenging party. [Citations.]" (Huffman v. Interstate Brands Corp. (2004) 121 Cal.App.4th 679, 706 [17 Cal.Rptr.3d 397].) Here, the record does not demonstrate invited error. Although Pioneer's trial counsel stated the mechanic's lien was "void" and a "nullity," an examination of the record indicates he nonetheless asserted its validity vis-à-vis the notice of lien filed in the bankruptcy court. At most, counsel appears to have applied one rule of law (an action to foreclose a lien cannot be commenced where there is a pending bankruptcy) when another rule should have been applied (a mechanic's lien can be filed even where there is a pending bankruptcy). Therefore, a deliberate tactical choice has not been shown here, and in its absence, there is no basis to apply the doctrine.
The judgment is reversed. Appellant is to recover its costs on appeal.
Rothschild, Acting P. J., and Chaney, J., concurred.