New Faze Development, Inc. (New Faze) (defendant) borrowed money to buy property, on which stood a building that was in good condition and leased to two tenants. Donna Fait (plaintiff) held New Faze's note and the deed of trust securing repayment of the loan. New Faze demolished the building to make way for construction of a planned mixed-use development. New Faze subsequently defaulted on the loan. Fait foreclosed on the property and sued New Faze for diminishing the property's value by intentionally demolishing the building. The trial court granted summary judgment for New Faze, on the grounds that New Faze acted neither recklessly nor with an intent to despoil the property, but in the good faith belief that it could develop the property and increase its value. Fait appealed to the California Court of Appeal.