Christopherson v. Allen

BRAY, P. J.

Defendant and cross-complainant Allen appeals from a judgment in favor of plaintiff and cross-defendant Christopherson in the sum of $5,700 principal, plus interest and attorney’s fees.

Question Presented

Is the judgment a deficiency judgment prohibited by section 580b, Code of Civil Procedure?

Record

Plaintiff owned 12 lots, defendant, a boat. They entered into an “Agreement of Exchange” in which plaintiff agreed to exchange his 12 lots at an agreed value of $17,050 and give defendant $4,500 cash, for defendant’s boat, agreed value $12,000, 12 promissory notes of $321 each, totaling $3,852, 10 of which were secured by one deed of trust on 10 of the lots, two of which were to be secured by a separate deed of trust on each of the other two lots, and an unsecured note of $5,700. The exchange was made. The following table more clearly shows the transaction:

Items of Exchange.

Defendant Plaintiff

Boat...........................$12,000

Note (unsecured) ............... 5,700

Notes (secured by lots).......... 3,852

Lots ........................... $17,050

Cash........................... 4,500

$21,552 $21,550

Defendant defaulted on all notes. The deed of trust on the 10 lots was foreclosed. Defendant offers to deed plaintiff the other two lots in satisfaction of the two notes of $321 each. This suit was brought on the $5,700 unsecured note, and, as stated above, plaintiff recovered judgment thereon for principal, interest and attorney’s fees.

Was This a Deficiency Judgment?

Section 580b, Code of Civil Procedure, provides: “No deficiency judgment shall lie in any event after any sale of real property for failure of the purchaser to complete

his contract of sale,

or under a deed of trust, or mortgage, given to secure payment of the balance of the purchase price of real property. ...” (Emphasis added.)