California Court of Appeal

In a suit seeking a deficiency judgment against property owners for defaulting on a promissory note, trial court's judgment in favor of the plaintiff on the ground that a prior settlement agreement between the parties was equivalent to a judgment providing for payment of $200,000 in the event of default on the note, is reversed, as because the settlement agreement was an explicit modifications of obligations already owed under the note, and because of the policy reasons for interpreting section 580(b) broadly, the only remedy is limited to foreclosure of the note's security, which has been exhausted for the foreclosure of a senior lien.

Appellate Information

• Decided 08/01/2012
• Published 08/01/2012

Judges

• Croskey

Court

• California Court of Appeal

Counsel