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Union Bank v. Gradsky
California Court of Appeal
265 Cal. App. 2d 40 (1968)
Facts
Bess Gradsky issued a promissory note to Union Bank (plaintiff) secured by a deed of trust on real property. Max Gradsky (defendant) signed on as a guarantor of the note. Bess defaulted on the note. Pursuant to its rights under the deed of trust, Union Bank held a nonjudicial sale of the property, but the sale’s proceeds did not cover all the outstanding debt. Union Bank then filed an action to recover the remaining balance from Max by virtue of his status as guarantor. The trial court dismissed Union Bank’s action, holding that § 580d of the California Code of Civil Procedure protected Max from liability. Union Bank appealed.
Rule of Law
Issue
Holding and Reasoning (Hufstedler, J.)
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