Security Pacific National Bank v. Wozab

51 Cal. 3d 991 (1990)

From our private database of 46,100+ case briefs, written and edited by humans—never with AI.

Security Pacific National Bank v. Wozab

California Supreme Court
51 Cal. 3d 991 (1990)

Facts

Anton and Dorothea Wozab (defendants) were customers of Security Pacific National Bank (bank) (plaintiff). The Wozabs owned and operated a business that had a substantial line of credit with the bank. The business ran into financial trouble, and the bank sought protections for its debt. The Wozabs granted the bank personal guarantees on the business’s debt. The Wozabs also executed a deed of trust on their home as security for the guarantees. The Wozabs’ business’s financial condition further deteriorated, and the bank feared the business would declare bankruptcy. The bank used funds in the Wozabs’ deposit accounts to set off a portion of the amount due to the bank under the guarantees. The bank had not first sought to foreclose on the Wozabs’ residence. The Wozabs’ lawyer informed the bank that, under § 726 of the California Code of Civil Procedure, the bank should have brought a foreclosure action to exhaust its security in the guarantees before going after the Wozabs’ personal assets. In response, the bank reconveyed the deed of trust back to the Wozabs and filed a personal action against the Wozabs to collect the outstanding balance of their debt. The trial court granted summary judgment in favor of the Wozabs, holding that the bank’s improper setoff served as a waiver not only of the bank’s security interest in the Wozabs’ home but also of the bank’s claim to the underlying debt. The bank appealed.

Rule of Law

Issue

Holding and Reasoning (Eagleson, J.)

Concurrence/Dissent (Broussard, J.)

What to do next…

  1. 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 745,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. 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.

    Learn about our approachRead more about Quimbee

Here's why 745,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,100 briefs, keyed to 987 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.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 745,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,100 briefs - keyed to 987 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership