Developments of Interest

New Cases of Interest - July 25, 2017

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Laymon v. J. Rockcliff, Inc. (2017) 12 Cal.App.5th 812.  The Court of Appeal found that claims seeking an accounting and disgorgement based on allegations of broker misconduct triggered the provisions in the real estate listing agreement concerning the obligation to pay compensation to a broker, and resulted in a seller being compelled to arbitrate that dispute under an arbitration provision contained in the listing agreement.  Similarly, mediation and arbitration provisions in the purchase agreement did not restrict arbitration to disputes among the buyer and the seller only.

Black Sky Capital, LLC v. Cobb (2017) 12 Cal.App.5th 887.  The Court holds that CCP § 580(b) applies only to the particular deed of trust that is foreclosed upon, and does not apply to a junior deed of trust secured by the same property so as to bar the junior lienholder from now suing on the now unsecured debt following a sale by the senior lienholder.  It makes no difference in that regard whether the junior lienholder is the same entity or a different entity than the senior lienholder.  The unpaid balance on the junior note could not be deemed a deficiency with respect to the senior note.

Hilliard v. Harbour (2017) 12 Cal.App.5th 1006.  A 78-year-old owner of a controlling interest in a limited liability company, sued a bank from which the LLC had borrowed more than $15,000,000 alleging that the bank seeking an amount larger than an agreed $2,000,000 settlement constituted elder abuse.  The bank demurred, the trial court sustained the demurrer, finding that the owner lacked standing to sue for the alleged harm to his ownership interest in the LLC.  The court affirmed, finding that the owner's status could not be deemed personal because it was an entity which had the underlying liability. 

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