The “Sham Guaranty” Defense is Not Easy to Establish
Under California anti-deficiency law, borrowers enjoy robust protections. Guarantors — not so much. The statutory protections afforded to borrowers cannot be waived, while for guarantors, they…
Lender Limits Liability for Breach of Loan Agreement
California Civil Code section 1668 states: “All contracts which have for their object, directly or indirectly, to exempt any one from responsibility for his own fraud,…
Guarantor Liability: Assignment of Note Doesn’t Automatically Assign Guaranty Too
Obligations reduced to a promissory note are often accompanied by a written guaranty. The law treats the guaranty as an independent obligation. A case recently decided…
A Lease and a Lease Guaranty Involve Different Rights and Remedies
Sister blog The LLC Jungle recently posted about an opinion from California’s Sixth District Court of Appeal — Orozco v. WPV San Jose, LLC — describing…
Contribution Rights Among Co-Guarantors: Liability Must Be Proportional
In reviewing notable guaranty cases from 2017 while preparing this year’s updates and edits for CEB’s top-notch treatise, California Mortgages, Deeds of Trust, and Foreclosure Litigation,…
Money and Dirt: Reviewing 2016
Here is a look back at some of the top real estate and secured lending developments from 2016 covered here at Money and Dirt: The California…
Sham Guaranties Are (Still) Hard To Come By
In a prior post, Sham Guaranties Are Hard To Come By, we reviewed a decision from the First District Court of Appeal that emphasized how difficult…
Seven Critical Mistakes Real Estate LLCs Make (and How to Avoid Them) — Mistake #5: Misunderstanding Secured Loan and Guaranty Rights/Liability
Real estate secured loans inspire all sorts of litigation. I see it from both sides of the coin, since I represent developers and investors (who are…