California Court of Appeal

In an action arising out of a former debtor-creditor relationship concerning real property that was damaged by the San Diego County wildfires of 2007, the trial court's grant of relief to intervenor-junior lienholder that it is entitled to a judicially imposed lien under the terms of its deed of trust and related note, and/or under the doctrine of equitable conversion, upon any recovery that plaintiff-homeowner might eventually obtain from the third party tortfeasors, is reversed and remanded, where: 1) the junior lienholder foreclosing under power of sale has failed to show the applicable exceptions cover its situation, either under the terms of the note or through the equitable conversion doctrine, to allow it to obtain a lien against plaintiff; 2) the lien ruling on the deed of trust was the functional equivalent of a deficiency money judgment; and 3) the ruling does not properly account for any ultimate allocation that may become necessary of any recovery from the third party tortfeasors, for property damage for the respective ownership periods, or for the junior lienholder's impairment of security.

Appellate Information

• Decided 04/09/2014
• Published 04/09/2014

Judges

• HUFFMAN

Court

• California Court of Appeal

Counsel