California Court of Appeal

In a case where the owner of a parcel of real property with a building on it demolishes the building to make way for new development, but was unable to complete the development and defaulted on a purchase money promissory note secured by a deed of trust on the property, and the holder of the note and deed of trust exercised the power of sale under the deed of trust and bought the property back at a foreclosure sale for less than the amount due under the note, the trial court's judgment is reversed where the note holder is not barred by the antideficiency statutes (Code Civ. Proc.,1 sections 580b, 580d) under the reasoning of Cornelison v. Kornbluth (1975) 15 Cal.3d 590, from suing the former owner and others for waste and impairment of security based on their demolition of the building, and seeking as damages the loss of value in the property that resulted from the destruction of the building.

Appellate Information

• Decided 06/27/2012
• Published 06/27/2012

Judges

Court

• California Court of Appeal

Counsel