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C. Phillip Johnson Full Gospel Ministries, Inc. v. Investors Financial Services, LLC

Court of Appeals of Maryland
12 A.3d 1207 (2011)


In 2005, Investors Financial Services, LLC (Investors) (defendant) loaned $93,000 to C. Phillip Johnson Full Gospel Ministries, Inc. (Ministries) (plaintiff) for the purchase of land. As security for the loan, Investors required Ministries to sign a deed of trust and a deed in lieu of foreclosure. The deed in lieu of foreclosure stated that title to the property would pass to Investors upon a default by Ministries. A few months after signing these documents, Ministries defaulted on the loan. Investors recorded the deed in lieu of foreclosure without conducting a foreclosure sale. Ministries sued Investors for breach of contract. Ministries argued that Investors was obligated to hold a foreclosure sale and claimed damages from Investors in the amount of $200,000, plus interest. The trial court dismissed the case.

Rule of Law


Holding and Reasoning (Battaglia, J.)

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