Court Cases
September 20, 2011
ANTIDEFICIENCY
Gramercy Investment Trust v. Lakemont Homes Nevada, Inc. (PDF)
After a judicial foreclosure, the lender obtained a deficiency judgment against a guarantor. The court held that the choice of law provision designating the law of New York was unenforceable because there were insufficient contacts with New York. California is where the contract was executed, the debt was created and guaranteed, the default occurred and the real property is located. Also, Nevada law does not apply, even though the guarantor was a Nevada corporation, because Nevada had no connection with the transaction. The court also held that the guarantor was not entitled to the protection of California's antideficiency statutes because the guaranty specifically waived rights under those statutes in accordance with Civil Code Section 2856.
Cal.App. 4th Dist., Div. 2 (E051384) 8/24/11
