1- 

LEGAL1264

11462.1 

PLAINTIFF’S MOTION FOR SUMMARY 

JUDGMENT 

Perkins Coie LLP

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Phone: 503.727.2000 

Fax: 503.727.2222 

Erick J. Haynie, OSB No. 982482 

EHaynie@perkinscoie.com 

Gabrielle D. Richards, OSB No. 114992 

GRichards@perkinscoie.com 

PERKINS COIE LLP

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Telephone: 503.727.2000 

Facsimile: 503.727.2222 

Attorneys for Plaintiff 

LNV Corporation 

UNITED STATES DISTRICT COURT 

DISTRICT OF OREGON 

PORTLAND DIVISION 

LNV CORPORATION, a Nevada 

corporation, 

Plaintiff, 

v. 

DENISE SUBRAMANIAM, 

Defendant. 

Case No. 3:14-cv-01836-MO 

PLAINTIFF’S MOTION FOR SUMMARY 

JUDGMENT 

REQUEST FOR ORAL ARGUMENT 

Case 3:14-cv-01836-MO Document 53 Filed 06/08/15 Page 1 of 8
 

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LEGAL1264

11462.1 

PLAINTIFF’S MOTION FOR SUMMARY 

JUDGMENT 

Perkins Coie LLP

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Phone: 503.727.2000 

Fax: 503.727.2222 

LOCAL RULE 7-1 COMPLIANCE 

Pursuant to Local Rule 7-1(a), the undersigned counsel for Plaintiff conferred in good 

faith with Defendant by telephone on March 8, 2015, and the parties were unable to reach a 

resolution of this matter. 

MOTION 

Pursuant to Rule 56 of the Federal Rules of Civil Procedure, Plaintiff LNV Corporation 

(“LNV”), moves this Court for summary judgment on its claim for judicial foreclosure of a trust 

deed. This motion is supported by the following memorandum, the Declaration of Michelle 

Conner in Support of Plaintiff’s Motion for Summary Judgment (“Conner Declaration”) filed 

concurrently herewith, the exhibits attached thereto, and the records on file with the Court in this 

action. 

MEMORANDUM IN SUPPORT OF MOTION 

I. INTRODUCTION 

This is a straightforward case about the Defendant’s failure to repay her home loan and 

LNV’s right, as the holder of the corresponding note and trust deed, to seek judicial foreclosure. 

The facts are simple. In February 2004, Defendant borrowed a substantial sum of money and 

secured the obligation to repay the loan with a deed of trust on her home. The loan was 

documented in a note. In April 2007, more than eight years ago, Defendant defaulted on the note 

and trust deed by failing to make her monthly payment when it was due. She failed to cure the 

default by not paying the accelerated principal payments. As the current holder of the note and 

beneficiary of the trust deed, LNV has the right to foreclose on the trust deed. 

This case has nothing to do with Bear Stearns, collateralized debt obligations, or 

mortgage fraud. To the extent Defendant raises any such arguments or allegations in response to 

this motion, the Court should disregard them because this Court dismissed with prejudice all of 

Defendant’s claims as to all defendants in Subramaniam v. D. Andrew Beal, et al. See 

Subramaniam v. Beal, No. 3:12-cv-1681-MO, 2013 WL 5462339 (D. Or. Sept. 27, 2013). 

Case 3:14-cv-01836-MO Document 53 Filed 06/08/15 Page 2 of 8
 

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LEGAL1264

11462.1 

PLAINTIFF’S MOTION FOR SUMMARY 

JUDGMENT 

Perkins Coie LLP

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Phone: 503.727.2000 

Fax: 503.727.2222 

Defendant’s claims in that case “centered around the mortgaging and threatened foreclosure of 

her home.” Id. at *1. As the Court’s prior dismissal established, those claims were without 

merit. 

For the reasons stated herein, LNV respectfully requests that the Court grant its motion 

for summary judgment and enter a judgment of foreclosure in favor of LNV so that LNV may 

obtain judicial foreclosure of the trust deed. 

II. STATEMENT OF FACTS 

A. Defendant Borrowed $176,000 

On or about February 10, 2004, People’s Choice Home Loan, Inc. (“People’s Choice”) 

made a loan to Defendant in the amount of $176,000 (the “Loan”). (Conner Decl. ¶ 6, Ex. 1, 

at 1.) The Loan is evidenced by an Adjustable Rate Note dated February 10, 2004 (the “Note”). 

(Id. ¶ 7, Ex. 1.) 

Defendant’s repayment of the Loan and her performance under the Note are secured by a 

Deed of Trust dated February 10, 2004 (“Trust Deed”). (Id. ¶ 8, Ex. 2, at 3.) Defendant pledged 

the home located at Lot 4, Block 2, Devonshire, in the County of Washington, State of Oregon, 

more commonly known as 13865 SW Walker Road, Beaverton, Oregon 97005 (the “Property”), 

as security under the Trust Deed. (Id. ¶ 8, Ex. 2, at 3, 19.) Section 22 of the Trust Deed provides 

that the holder of the Note “may invoke the power of sale and any other remedies permitted by 

Applicable Law” in the event of an uncured default. (Id. Ex. 2, at 13.) 

B. LNV Is the Current Holder of the Note and Beneficiary of the Trust Deed 

Through two allonges, LNV became and currently is the holder of the Note. People’s 

Choice transferred the Note to Residential Funding Company, LLC (“RFC”) by endorsing the 

Note to the order of RFC in an allonge and delivering the Note and allonge to RFC. (Id. Ex. 1, 

at 6.) RFC transferred the Note to LNV by endorsing it to the order of LNV in an allonge and 

delivering the Note and allonges to LNV. (Id. Ex. 1, at 7.) LNV is now the holder of the Note. 

Case 3:14-cv-01836-MO Document 53 Filed 06/08/15 Page 3 of 8
 

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LEGAL1264

11462.1 

PLAINTIFF’S MOTION FOR SUMMARY 

JUDGMENT 

Perkins Coie LLP

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Phone: 503.727.2000 

Fax: 503.727.2222 

In addition, LNV is the current beneficiary of the Trust Deed. On or about March 10, 

2008, RFC assigned its beneficial interest in the Trust Deed to LNV (“Trust Assignment”). (Id.

Ex. 3, at 2.) The Trust Assignment was recorded in the official records of Washington County, 

Oregon on August 27, 2008 as Instrument Number 2008-073972. (Id. Ex. 3, at 1.) Under the 

Trust Assignment, LNV is the current beneficiary of the Trust Deed. MGC Mortgage, Inc. 

(“MGC”) is the loan servicer for LNV. (Id. ¶ 1.) MGC and LNV are affiliated entities with 

common ownership. (Id.) 

C. Defendant Defaulted on the Note and Trust Deed 

Under the Note, Defendant was required to make monthly payments on the first day of 

each month beginning on April 1, 2004. (Id. ¶ 11, Ex. 1, at 1.) The failure to pay the full 

amount of each monthly payment by the due date constituted a default. (Id. ¶ 11, Ex. 1, at 3.) 

Furthermore, Defendant was obligated to pay when due her debt on the Note under Section 1 of 

the Trust Deed. (Id. ¶ 11, Ex. 2, at 3.) Under Section 22 of the Trust Deed, a failure to make full 

and timely payments on the Note constituted a breach of the Trust Deed and a default thereon. 

(Id. ¶ 11, Ex. 2, at 13.) 

Defendant breached her obligations under the Note and Trust Deed by failing to pay her 

monthly payments when due, beginning with the payment due on April 1, 2007. (Id. ¶ 13.) A 

loan status report (aka Payoff Statement) generated from MGC’s computer systems on June 5, 

2015 (“Loan Status Report”), shows “[t]his loan is due for the April 01, 2007 payment.” (Id.

Ex. 4, at 1.) The Loan Status Report also shows that, as of June 15, 2015, the total amount to 

pay the Loan in full will be $324,557.19 and that the current unpaid principal balance is 

$171,450.72. (Id.) Defendant has been in default on the Note and Trust Deed for over eight 

years. 

In the event of an uncured default, LNV had the right to accelerate the principal payments 

on the Note and require immediate payment in full of all sums owed under the Note that are 

secured by the Trust Deed. (Id. ¶ 12, Ex. 1, at 3, Ex. 2, at 13.) In December 2010, MGC sent 

Case 3:14-cv-01836-MO Document 53 Filed 06/08/15 Page 4 of 8
 

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LEGAL1264

11462.1 

PLAINTIFF’S MOTION FOR SUMMARY 

JUDGMENT 

Perkins Coie LLP

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Phone: 503.727.2000 

Fax: 503.727.2222 

Defendant a notice of default (“Notice of Default”). (Id. ¶ 14, Ex. 5.) Pursuant to Section 22 of 

the Trust Deed, the Notice of Default notified Defendant of her default, the actions required to 

cure the default, a deadline to cure the default, and the potential immediate acceleration of the 

principal balance secured by the Trust Deed. (Id. Ex. 5, at 1.) As indicated by the Loan Status 

Report, Defendant did not cure her defaults on the Note and Trust Deed. (Id. Ex. 4.) In May 

2012, LNV accelerated the principal payments on the Note and decided to invoke the power of 

sale under the Trust Deed. (Id. ¶ 15.) 

The defaults remain uncured to date. (Id. ¶ 19.) Defendant owes under the Note the sum 

of $324,557.19 as of June 15, 2015 (assuming no payment made between the date of the Conner 

Declaration and June 15, 2015), consisting of principal in the amount of $171,450.72, interest at 

the rate of 10.625% through June 15, 2015 of $109,768.04, escrow/impound overdraft of 

$40,211.75, unpaid late charges of $2,687.43, a recording/assignment fee of $46.00, and a 

property inspection fee of $393.25. (Id. ¶ 19, Ex. 4.) 

D. LNV Is Exempt from the Oregon Foreclosure Avoidance Program 

On or about January 8, 2014, LNV duly executed an Oregon Foreclosure Avoidance 

Program Beneficiary Exemption Affidavit and delivered it to the Attorney General of Oregon, 

evidencing qualification for exemption from the provisions of ORS 86.726(2) and (3). (Id. ¶ 20, 

Ex. 12.) LNV prepared a Foreclosure Avoidance Measure Notice that was sent to Defendant 

with the service of the Amended Complaint. (Id. ¶ 21, Ex. 13.) 

III. LEGAL STANDARD 

Summary judgment is appropriate when there is no genuine dispute as to any material 

fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). The 

moving party has the burden of establishing the absence of a genuine issue of material fact. 

Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). If the moving party shows the absence of a 

genuine issue of material fact, the nonmoving party must go beyond the pleadings and identify 

facts that show a genuine issue for trial. Id. at 324. A nonmoving party cannot defeat summary 

Case 3:14-cv-01836-MO Document 53 Filed 06/08/15 Page 5 of 8
 

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LEGAL1264

11462.1 

PLAINTIFF’S MOTION FOR SUMMARY 

JUDGMENT 

Perkins Coie LLP

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Phone: 503.727.2000 

Fax: 503.727.2222 

judgment by relying on “unsupported conjecture or conclusory statements.” Hernandez v. 

Spacelabs Med. Inc., 343 F.3d 1107, 1112 (9th Cir. 2003). 

IV. ANALYSIS 

Under the Note, Trust Deed, and applicable law, LNV is entitled to an order of summary 

judgment, by which judgment this Court should enter a judicial decree of foreclosure. Under 

Oregon law, “[t]ransfers in trust of an interest in real property may be made to secure the 

performance of an obligation of a grantor, or any other person named in the deed, to a 

beneficiary.” ORS 86.710. Where a transfer in trust of an interest in real property is made to 

secure the performance of an obligation, the power of sale is conferred upon the trustee. Id. 

This “power of sale may be exercised after a breach of the obligation for which the transfer is 

security.” Id. Furthermore, “a trust deed . . . may be foreclosed by the beneficiary as provided 

by law for the foreclosure of mortgages on real property.” Id.; see also BAC Home Loans 

Servicing, LP v. Hackett, No. 3:11-cv-416-HZ, 2013 WL 5636714, at *3 (D. Or. Oct. 11, 2013). 

When the beneficiary of a trust deed chooses to pursue judicial foreclosure of the trust 

deed, the law on the foreclosure of mortgages applies. See BAC Home Loans, 2013 WL 

5636714, at *3; Kelly v. U.S. Bank, Civ. No. 08-1421-AC, 2010 WL 4135028, at *19 (D. Or. 

July 29, 2010), report and recommendation adopted, No. CV 08-1421-AC, 2010 WL 4116754 

(D. Or. Oct. 14, 2010). The applicable statute provides that “a lien upon real or personal 

property, . . . whether created by mortgage or otherwise, must be foreclosed, and the property 

adjudged to be sold to satisfy the debt the lien secures, by bringing suit.” ORS 88.010(1). 

To prevail on its claim for judicial foreclosure, LNV must “show that (1) [Defendant] 

executed a deed of trust to secure performance of an obligation to a beneficiary and that 

(2) [Defendant] breached that obligation.” BAC Home Loans, 2013 WL 5636714, at *3; see also 

Kelly, 2010 WL 4135028, at *19 (“[T]o the extent that a valid trust deed exists and default on the 

underlying note has occurred, foreclosure may be exercised by the grantor.”). 

Case 3:14-cv-01836-MO Document 53 Filed 06/08/15 Page 6 of 8
 

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LEGAL1264

11462.1 

PLAINTIFF’S MOTION FOR SUMMARY 

JUDGMENT 

Perkins Coie LLP

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Phone: 503.727.2000 

Fax: 503.727.2222 

LNV has met its burden. The evidence in the record makes clear that Defendant executed 

the Trust Deed to secure her repayment of the Loan and her obligations under the Note, and 

Defendant breached her obligations. Under the Trust Assignment, LNV is the beneficiary of the 

Trust Deed. Irrespective of the Trust Assignment, LNV is the beneficiary of the Trust Deed by 

operation of law because it is the holder of the Note. See Brandrup v. ReconTrust Co., N.A., 353 

Or. 668, 694, 303 P.3d 301 (2013) (“A trust deed follows the promissory note that it secures.”). 

None of these facts can be disputed by any admissible evidence. 

CONCLUSION 

For the foregoing reasons, LNV respectfully requests that the Court grant its motion for 

summary judgment on its claim for judicial foreclosure, enter a foreclosure judgment in the 

amount of $324,557.19 as of June 15, 2015 (assuming no payment made between the date of the 

Conner Declaration and June 15, 2015), plus interest and other costs and expenses to accrue 

thereon through the date of judicial sale, order a judicial sale of the property encumbered by the 

Trust Deed to raise the sum owing under the Note, and award LNV attorneys’ fees and costs. 

DATED: June 8, 2015 PERKINS COIE LLP

By:/s/ Gabrielle D. Richards 

Erick J. Haynie, OSB No. 982482 

EHaynie@perkinscoie.com 

Gabrielle D. Richards, OSB No. 114992 

GRichards@perkinscoie.com 

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Telephone: 503.727.2000 

Facsimile: 503.727.2222 

Case 3:14-cv-01836-MO Document 53 Filed 06/08/15 Page 7 of 8
 

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62.1 

CERTIFICATE OF SERVICE 

Perkins Coie LLP

1120 N.W. Couch Street, Tenth Floor 

Portland, OR 97209-4128 

Phone: 503.727.2000 

Fax: 503.727.2222 

CERTIFICATE OF SERVICE 

 I certify that I will serve the foregoing PLAINTIFF’S MOTION FOR SUMMARY 

JUDGMENT on Defendant, Denise Subramaniam at 13865 SW Walker Rd., Beaverton, OR 

97005 by depositing a copy in the U.S. Mail in a sealed postage-prepaid envelope with the 

United States Postal Service at Portland, Oregon on June 8, 2015. 

DATED: June 8, 2015 /s/ Gabrielle D. Richards 

Gabrielle D. Richards, OSB No. 114992 

GRichards@perkinscoie.com 

Attorneys for Plaintiff 

LNV Corporation 

Case 3:14-cv-01836-MO Document 53 Filed 06/08/15 Page 8 of 8