Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_11-cv-02143/USCOURTS-azd-2_11-cv-02143-2/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:1692 Fair Debt Collection Act

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Renee M. Zinni and Marco S. D'Alonzo, 

Plaintiffs, 

vs.

Jackson White PC et al.,

Defendants. 

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No. CV 11-02143-PHX-FJM

ORDER

We have before us plaintiffs' motion to set aside/cancel trustee's sale (doc. 24) and

defendants' response (doc. 26). Plaintiffs allege that defendants were not properly appointed

as trustees and therefore have no authority to conduct a trustee's sale. They also allege that

the opening bid is a grossly inadequate price. We previously denied plaintiffs' motion for

preliminary injunction (doc. 22). If plaintiffs' motion is construed as a motion for

reconsideration, it falls short of the standards of Rule 60(b), Fed. R. Civ. P. and LRCiv

7.2(g). If viewed only as a motion to set aside the sale based on price, it is premature.

Plaintiffs contend that defendants had not been assigned power of attorney on the

plaintiffs' property, but the record discloses that defendant Scott L. Potter possesses a special

power of attorney from M&I Marshall & Ilsley Bank to conduct non-judicial trustee's

foreclosure sales on the bank's behalf. (Doc. 26, ex. A). This document also grants him the

right to execute a notice of substitution of trustee. His appointment as successor trustee was

therefore not fraudulent.

Case 2:11-cv-02143-FJM Document 27 Filed 01/04/12 Page 1 of 2
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"[A] sale of real property under power of sale in a deed of trust may be set aside solely

on the basis that the bid price was grossly inadequate." In re Krohn, 203 Ariz. 205, 214, 52

P.3d 774, 783 (2002). "[T]he debtor will have the burden of showing gross inadequacy as

compared to fair market value . . . ." Id. at 211, 52 P.3d at 780. Plaintiffs allege that they

have invested approximately $356,000 in construction costs and mortgage payments (doc.

24 at 6). They purchased their house on April 22, 2005 for $350,000 (doc. 1 ¶ 7). They

contend their house is now worth "at least $650,000.00." 

Plaintiffs ignore the fact that $94,740.00 is the opening bid. The house may sell for

well over this amount. In addition, Krohn dealt with setting aside a trustee's sale after it

occurred, not precluding one based on a potentially low price, and does not provide authority

for us to cancel the sale. 

IT IS HEREBY ORDERED DENYING plaintiffs' motion to set aside or cancel the

trustee's sale (doc. 24).

DATED this 4th day of January, 2012.

Case 2:11-cv-02143-FJM Document 27 Filed 01/04/12 Page 2 of 2