Procedural Posture

Defendant property owner appealed the judgment of the Superior Court of Santa Clara County (California) entered in favor of plaintiff lender after a trial by the court upon a supplemental complaint for tortious damages for wrongfully effecting a trustee's sale of a parcel of real property.

Nakase Law Firm handles litigation

Overview

Defendant property owner held a note on a first deed of trust on a parcel of property. The promisor granted the property to a grantor who executed a second deed of trust. Plaintiff lender made a loan to the grantor, which was secured by a third deed of trust. In exchange for an additional loan, the grantor gave plaintiff a grant deed to the property. The grantor defaulted on the loan. Plaintiff tendered the amount needed to cure the default but defendant refused to accept, claiming that the tender was insufficient to cure the default as to the first deed of trust. Plaintiff filed a tort action seeking damages and alleging that defendant had wrongfully effected the trustee's sale. The trial court found in favor of plaintiff. Defendant appealed. The court on appeal affirmed. Plaintiff, as successor in interest, was entitled to tender the amount due to cure any default and to file suit for damages for the illegal sale. Both the trustee as the agent and the defendant as the beneficiary were liable and the measure of damages was based on the property value at the time of the sale minus any mortgages or liens. Substantial evidence supported the trial court's findings on damages.

Outcome

The court affirmed the judgment in favor of plaintiff lender in an action against defendant property owner for tortious damages resulting from the wrongful trustee's sale of a parcel of real property, holding that defendant had wrongfully refused to accept plaintiff's tender of the amount due to cure the default on the property as plaintiff was the successor in interest.