Wilson v. Steele

211 Cal. App. 3d 1053 (1989)

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Wilson v. Steele

California Court of Appel
211 Cal. App. 3d 1053 (1989)

Facts

Millie Williams owned an apartment building subject to a first deed of trust. Michael Jackson was an unlicensed contractor hired to remodel the building. Jackson received a lump sum of cash and a promissory note secured by a second deed of trust on the building. Jackson never actually did any construction work on the building. The holder of the first deed of trust issued a notice of default and began foreclosure proceedings. Jackson then sold the note and second deed of trust to Ron Steele and Ken Steele (defendants), who cured the default. Williams died, and Frances Wilson (plaintiff), the executor of Williams’s estate, filed a suit to have a court cancel the Steeles’ note and deed of trust. The trial court ruled that the Steeles’ note and deed of trust were valid and enforceable against Wilson because, the court found, the Steeles were holders in due course. Wilson appealed.

Rule of Law

Issue

Holding and Reasoning (Klein, J.)

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