Bowen v. Yniguez
California Court of Appeal
2005 WL 1324773 (2005)
Richard and Steven Yniguez (defendants) purchased an inn from Bowen (plaintiff). The Yniguezes made a down payment and gave Bowen a promissory note subject to installment payments. The Yniguezes defaulted on their payments, and Bowen foreclosed. Bowen purchased the inn at the foreclosure sale for approximately $100,000 less than the amount due on the promissory note. Bowen brought suit for bad faith waste of her security interest. Bowen presented photographic and video evidence of the state in which the Yniguezes left the inn. The evidence depicted mold everywhere, floor boards torn up, and trash inside and outside. Additionally, Bowen presented a letter from Richard stating Steven mismanaged the inn and used it as a party house. The Yniguezes argued any waste was the result of their financial difficulties that also caused the default. The trial court found in favor of Bowen and awarded $55,000 in damages, the amount of the cost of repairs in addition to any lost profits during the completion of the repairs. This amount was less than the $100,000 deficiency resulting from the foreclosure sale. The Yniguezes appealed.
Rule of Law
Holding and Reasoning (Pollak, J.)
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