Loretz v. Cal-Coast Development Corp.
California Court of Appeal
249 Cal. App. 2d 176 (1967)
Facts
Cal-Coast Development Corporation (Cal-Coast) (defendant) purchased a motel from Edward Loretz (plaintiff). Cal-Coast covered a portion of the purchase price by issuing Loretz a $25,000 promissory note secured by a deed of trust on a different lot of real property. The deed of trust stipulated that the value of the lot was $8,000. Cal-Coast defaulted, and Loretz sold the lot under the deed of trust for $2,500. Loretz then brought an action to recover the remaining debt. In his complaint, Loretz argued that the note was secured only up to the stipulated $8,000 value of the lot and was unsecured as to the remaining $17,000. Accordingly, Loretz argued, California’s antideficiency statutes did not apply to the unsecured portion of the note. The trial court awarded Loretz a deficiency judgment, and Cal-Coast appealed.
Rule of Law
Issue
Holding and Reasoning (Devine, J.)
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