Is an easement terminated when an owner holds title to adjoining properties?

Facts: An easement existed across two properties. A trust deed was recorded on the property benefitted by the easement. A neighbor held title to the property burdened by the easement and through common ownership acquired title to the property benefitted by the easement. The neighbor defaulted and the holder of the trust deed foreclosed and became the new owner of the property benefitted by the easement.

Claim: The neighbor sought to eliminate the easement burdening their property claiming through common ownership of the properties the easement was extinguished by merger.

Counterclaim: The owner claimed the easement was not extinguished since no merger of title occurred as the owner had held an intervening interest through the trust deed.

Holding: A California court of appeals held the easement was not extinguished since no merger of title occurred as the owner held an intervening interest through the trust deed. [Hamilton Court, LLC v. East Olympic, L.P. (2013) __ CA4th __]