Court of Appeals of California
146 Cal. Rptr. 57 (1978)
The Schoolcrafts (plaintiffs) bought a house from Maude Ross (defendant), with the purchase price to be paid in monthly installments. The Schoolcrafts executed a promissory note secured by a deed of trust that named Ross as the beneficiary of the monthly installments and Modesto Title Guaranty (Modesto) (defendant) as the trustee. Under the deed of trust, the Schoolcrafts agreed to restore any building that might be damaged or destroyed and pay the restoration costs. The deed of trust also provided that Ross could apply the amount collected under a fire insurance policy to any indebtedness secured by the deed. The house was later destroyed by a fire. Under the fire insurance policy, the Schoolcrafts could rebuild the house and receive reimbursement from the insurer. The insurer issued a check for an initial amount, payable to Ross and the Schoolcrafts, with the balance to be paid upon the completion of the new house. However, Ross refused to allow the money to be used to rebuild the house and kept the money under the terms of the deed of trust. The Schoolcrafts could not afford to pay the monthly installments while renting another home and stopped making payments to Ross. Ross instructed Modesto to begin foreclosure proceedings against the Schoolcrafts. The property was later sold at a private sale to Ross. The Schoolcrafts sued Ross. The trial court entered judgment in favor of the Schoolcrafts, finding that Ross had breached the implied covenant of good faith and fair dealing. Ross appealed.
Rule of Law
Holding and Reasoning (Hopper, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 217,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.