Pico Rivera First Mortgage Investors LP has filed a breach of contract complaint against Henry Aguila. The complaint was filed in the Court of Appeal of the State of California, Second Appellate District, Division Six on May 29, 2024.
The case revolves around Aguila's corporation, Thee Aguila, Inc. (TAI), which lost real property to foreclosure. After the foreclosure, Pico Rivera First Mortgage Investors sued Aguila on his personal guarantee of the loan. In response, Aguila cross-complained against the lender and other parties involved in the post-foreclosure sale of the property. Ultimately, Aguila settled with Pico Rivera First Mortgage Investors, agreeing to a judgment exceeding $3.8 million.
Aguila appealed an order denying his motion to vacate this stipulated judgment and also contested a judgment favoring the real estate broker involved in selling the foreclosed property. The court had previously sustained a demurrer on most causes of action without leave to amend and granted summary judgment on the remaining cause.
The facts reveal that TAI owned property in Pico Rivera that was leased for use as a nightclub and restaurant. In 2015, the DEA seized its liquor license due to money laundering activities linked to a Mexican drug cartel tenant. This led to revocation of its conditional use permit (CUP) and shutdown by local authorities. Despite efforts by Aguila to obtain a new CUP and liquor license, TAI defaulted on a $5.7 million loan from Pico Rivera First Mortgage Investors in July 2015, leading to foreclosure proceedings in August 2017.
Following foreclosure in December 2017, Pico Rivera First Mortgage Investors initiated legal action against Aguila for breaching his personal guarantee. Aguila counter-sued alleging an oral agreement granting him one year post-foreclosure to meet financial obligations or arrange for property sale proceeds. However, this "option contract" was not honored according to him.
In October 2018, both parties reached a settlement stipulating judgment against Aguila for $3,867,113.84 along with covenants not to sue each other further—a condition later breached by Pico Rivera First Mortgage Investors during an unrelated bankruptcy proceeding involving Malley.
Aguila’s subsequent lawsuit against Pico Rivera First Mortgage Investors for breaching this settlement agreement was dismissed under anti-SLAPP statutes as it did not encompass Malley's bankruptcy motion within its non-suit covenant terms—affirmed upon appeal.
Further complicating matters were claims against Wolf Baschung—the real estate agent handling post-foreclosure sales—alleging fiduciary breaches and economic interference by conspiring with Blackwood LLC excluding him from sale processes despite substantial offers enhancing property value over $5 million through newly obtained entitlements like CUPs.
However, these claims were dismissed via demurrer since no direct fiduciary duty existed between Baschung & Aguila personally; instead duties lay towards TAI alone.
Attorneys involved include Ronald D. Tym representing Henry Aguila; Eric A Woosley representing Pico Rivera First Mortgage Investors LP; Rinat Klier-Erlich & Brian T Smith representing Wolf Baschung presided over Judge Colleen K Sterne Superior Court County Santa Barbara Case ID B3822020.