Los Angeles Trust & Savings Bank v. Bortenstein

47 Cal. App. 421 (1920)

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Los Angeles Trust & Savings Bank v. Bortenstein

California Court of Appeal

47 Cal. App. 421 (1920)

Facts

Herman Bortenstein (defendant) owned real property subject to a mortgage held by Los Angeles Trust & Savings Bank (bank) (plaintiff). The city of Los Angeles (city) caused a flood that greatly damaged the mortgaged property. Bortenstein brought a successful tort action against the city, securing a monetary judgment for damage caused by the flood. The bank then brought an action to foreclose on the property. Among the trial court’s rulings were an order for the sheriff to sell the mortgaged property and an order, if the proceeds did not cover Bortenstein’s debt to the bank, to use Bortenstein’s tort winnings against the city to cover the remainder. Bortenstein appealed the portion of the trial court’s judgment allowing the bank to use Bortenstein’s tort winnings to cover the mortgage debt.

Rule of Law

Issue

Holding and Reasoning (Finlayson, J.)

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