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Talbott v. Hustwit

California Court of Appeal
78 Cal. Rptr. 3d 703 (2008)


Cynthia Talbott (plaintiff) issued a loan to Pacific West Investment Trust (the Trust), secured by real property. The Hustwits (defendants) guaranteed the loan. The Hustwits were not trustees of the Trust but established a limited liability company (LLC) to be the trustee. The Trust defaulted, and Talbott commenced foreclosure proceedings. Talbott purchased the property and brought suit against the Hustwits for the difference between the purchase price and the unpaid loan balance. The Hustwits asserted that California’s anti-deficiency statute protected them from Talbott’s claim. The trial court found that the statute did not protect the Hustwits and awarded judgment to Talbott. The Hustwits appealed.

Rule of Law


Holding and Reasoning (Aronson, J.)

Concurrence (Sills, J.)

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