Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Black Sky Capital, LLC v. Cobb

California Court of Appeals, Fourth District, Second Division

June 13, 2017

BLACK SKY CAPITAL, LLC, Plaintiff and Appellant,
v.
MICHAEL A. COBB et al., Defendants and Respondents.

         APPEAL from the Superior Court of San Bernardino County No. CIVDS1416584. Bryan Foster, Judge. Reversed.

          Law Offices of Ronald Richards & Associates, Ronald N. Richards; Law Offices of Geoffrey Long and Geoffrey S. Long for Plaintiff and Appellant.

          Levitt Law, Scott L. Levitt; Lex Opus, Eric M. Schiffer; Schiffer ǀ Buus and Eric M. Schiffer for Defendants and Respondents.

          OPINION

          McKINSTER, Acting P. J.

         INTRODUCTION

         Plaintiff and appellant Black Sky Capital, LLC, (Black Sky) appeals a summary judgment entered in favor of defendants and respondents Michael A. Cobb and Kathleen S. Cobb (the Cobbs).[1]

         On or about August 18, 2005, the Cobbs borrowed $10, 229, 250 from Citizens Business Bank. The note was secured by a deed of trust on a parcel of commercial real property in Rancho Cucamonga. On or about September 13, 2007, the Cobbs obtained a second loan from Citizens Business Bank, in the amount of $1, 500, 000, which was secured by a second deed of trust on the same property. Black Sky purchased both notes from Citizens Business Bank for an undisclosed sum. After the Cobbs defaulted on the senior loan, Black Sky opted to conduct a trustee's sale under the senior deed of trust. It acquired the property on or about October 28, 2014 for $7, 500, 000. On November 4, 2014, after the Cobbs defaulted on the junior loan, Black Sky filed the suit which is the subject of this appeal, seeking to recover the amount still owed on the junior note.

         The Cobbs moved for summary judgment. Relying on Simon v. Superior Court (1992) 4 Cal.App.4th 63 (Simon), they argued that Code of Civil Procedure section 580d[2] prohibits a party holding both a senior and a junior lien on real property from both conducting a trustee's sale after default on the senior note and obtaining a monetary judgment for the balance owing on the note secured by the junior lien. They contended that the monetary judgment would be a deficiency judgment, which is prohibited by section 580d.

         The trial court granted the Cobbs' motion and entered judgment for them. Black Sky appealed.

         On appeal, Black Sky contends that Simon, supra, 4 Cal.App.4th 63, and the cases following it have erroneously expanded section 580d, based on an incorrect reading of Roseleaf Corp. v. Chierighino (1963) 59 Cal.2d 35 (Roseleaf). It contends that section 580d, by its express terms, does not apply to the present circumstances. It contends that it is a “sold-out junior” lienholder within the meaning of Roseleaf, and that it has the right to seek a judgment for the balance owed on the junior note.

         We agree that neither the rule enunciated in Simon nor section 580d applies under the circumstances of this case. Accordingly, we will reverse the judgment.

         LEGAL ANALYSIS

         BLACK SKY'S CLAIM FOR ANY BALANCE DUE ON THE SECOND LOAN IS NOT BARRED BY SECTION 580d OR BY SECTION 726

         Standard ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.