Munger v. Moore

Reichert owned a piece of real property. The property was encumbered by a first deed of trust in favor of Home Foundation Savings and Loan (Home) and a second deed of trust in favor of Atwill (defendant). The trustee of the second deed of trust was Valley Title Company (Valley) (defendant). Maynard Munger (plaintiff) made a loan to Reichert in exchange for a third deed of trust in favor of Munger. Munger then advanced Reichert an additional amount of money. This additional loan was secured by a bilateral transaction in which Reichert conveyed a grant deed on the property to Munger and Munger issued an option to repurchase the property to Reichert upon the satisfaction of Munger’s two loans. Reichert defaulted on his obligation secured by the second deed of trust. Munger tendered to Valley the amount needed to cure Reichert’s default, but Valley, at Atwill’s behest, refused it. Valley held a foreclosure sale at which Robert Moore (defendant) purchased the property. Several years later, Moore sold the property. Munger, asserting that the foreclosure sale had been improper, sued Atwill, Valley, and Moore, seeking monetary damages. The trial court ruled in favor of Munger, awarding him $30,000, the amount the trial court found to be the market value of the property at the time of the foreclosure sale. Atwill, Valley, and Moore appealed.