Brown v. Jensen
California Supreme Court
41 Cal. 2d 193 (1953)
Estelle Brown (plaintiff) sold Rose Jensen (defendant) a piece of real property. Jensen took out two purchase-money loans to cover a portion of the purchase price. Jensen borrowed $11,300 from a savings and loan association (association) and granted the association a first deed of trust on the property. Jensen also borrowed $7,200 from Brown and granted Brown a second deed of trust, junior to the association’s, on the property. Jensen defaulted, and the association ordered a sale of the property, at which the association purchased it. This sale rendered Brown’s security interest in the real property valueless. Brown then sued Jensen to recover the $7,200 debt. Jensen argued that Brown’s action was barred by § 580b of the California Code of Civil Procedure, which provided that a creditor could not obtain a deficiency judgment for debt secured by a purchase-money trust deed. The trial court ruled in favor of Brown, and Jensen appealed.
Rule of Law
Holding and Reasoning (Carter, J.)
Dissent (Spence, J.)
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