California Court of Appeal

When a bank enters into a written loan agreement that specifies the collateral for two different loans, and does not state that the loans will be cross-collateralized against each other, the bank may not subsequently enforce a broadly worded "dragnet" clause contained in the fine print of a standard form deed of trust securing one of the loans.

Appellate Information

• Decided 06/25/2003
• Published 06/25/2003

Judges

• AARON, J.

Court

• California Court of Appeal

Counsel

• For Appellant:
  
•  Bruckner & Walker, William L. Bruckner, San Diego, and Charles F. Walker for Plaintiffs and Appellants Karl E. Fischer et al.


• For Appellees:
  
• Browne & Woods, Michael J. Olecki, Beverly Hills, and Sonia Y. Lee for Defendant and Appellant Investors Title Company., Solomon, Grindle, Silverman & Spinella and Stephen M. Spinella, San Diego, for Defendant and Respondent First International Bank.