“As a result of Smart Solar’s default under the Anchor Note, Plaintiff took steps to foreclose under the Anchor deed of trust. The foreclosure was completed and Plaintiff received title to the Property via trustee’s deed on . )

As part of the factual background of the SAC to support its slander of title and negligence claims, Plaintiff alleges that:

· “Defendants Ygrene, Reerica and PACE Funding recorded liens against the Property in 2016 which were fraudulently obtained and violated both the Best Practice Guidelines and the PACE lenders’ respective underwriting guidelines.” (SAC, ¶ 57.)

· “Plaintiff has provided Ygrene, Reerica and PACE Funding with evidence of the fraud and that these defendants have nevertheless refused to remove these liens, notwithstanding their knowledge payday loans Lexington bad credit of the fraudulent nature of said liens.” (SAC, ¶ 59.)

· “As a result of the conduct of Ygrene, Reerica, and PACE Funding, Plaintiff has been damaged in an amount in excess of $380,” (SAC, ¶¶ 58, 60.)

· “[I]n 2016 Maldonado, Marentes and Smart Solar engaged in a fraudulent scheme whereby they obtained PACE loans from Ygrene, Reerica and PACE Funding, to be secured by liens against the Property, and the underlying energy efficient upgrades which were promised were never made.” (SAC, ¶ 62.)

· “Ygrene, Reerica and PACE Funding breached their duties of care by engaging in acts and omissions which allowed Maldonado, Smart Solar and ong other things, failing to take any steps to ensure that Plaintiff was notified when the PACE loans were made and secured by the Property, failing to ensure that Marentes was properly vetted, by making the loan disbursement in a lump-sum payment, as opposed to an ongoing basis, by making PACE loans that exceeded 10% of the Property’s estimated value, by making PACE loans which were secured by the Property and had the effect of making the Property ‘under water,’ and by failing to enacting any quality assurance and anti-fraud measures (including inspections of property).” (SAC, ¶ 65.)

Through the foreclosure, Plaintiff was forced to pay off the balances allegedly owed to Ygrene, Reounts for these three loans was $380, ” (SAC, ¶ 38

· “Ygrene, Reerica and PACE Funding did not comply with any of these best practices with respect to the Property.” (SAC, ¶ 65.)

· “[A]s a direct and proximate result of Ygrene’s, Reerica’s and PACE Funding’s conduct, Maldonado, Smart Solar and Marentes were able to receive the proceeds from the Ygrene Loan, the Reerica Loan and the PACE Funding Loan, and Ygrene, Reerica and PACE Funding were able to receive the fees and interest associated with said loans, plus a security interest in the Property, events which caused damages to Plaintiff in an amount in excess of $380,.” (SAC, ¶ 66.)

Instead, it brings claims for slander of title and negligence based on liens Defendant recorded that were fraudulently obtained. Therefore, Plaintiff is not a “taxpayer” for purposes of this case and is not required to exhaust administrative remedies prior to commencing this action.

“ ‘The elements of a cause of action for slander of title are ‘(1) a publication, (2) which is without privilege or justification, (3) which is false, and (4) which causes direct and immediate pecuniary loss.’ [Citations.]’ [Citation]” (M.F. Farming Co. v. Couch Distributing Co., Inc. (2012) 207 Cal.App.4th 180, 198.)

Defendant argues that because Plaintiff’s slander of title claim sounds in fraud, it is therefore subject to fraud pleading standards, but does not plead any fraud with specificity. (Demurrer, p. -24.) Defendant also argues that “the slander of title claim suffers from additional fatal deficiencies: (1) Plaintiff has not and cannot allege that the Ygrene Liens were without privilege or justification, (2) Plaintiff does not have standing to sue for slander of title, and (3) Plaintiff has not and cannot allege that the Ygrene Liens contain any false statement.” (Id. at pp. -15:1.)