Plaintiff borrowers appealed a judgment from the Superior Court of San Diego County (California), which sustained, without leave to amend, defendant lenders’ demurrers to the borrowers’ causes of action for unfair business practices under Bus& ProfCode, § 17200, and intentional infliction of emotional distress arising from a nonjudicial foreclosure on the borrowers’ residence.
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Overview
A loan to the borrowers’ company was secured by a deed of trust on undeveloped land owned by the company and by a deed of trust on the borrowers’ residenceThe deeds of trust stated that the borrowers expressly waived any right to direct the order in which the collateral could be soldThe loan went into default, and nonjudicial foreclosure proceedings were instituted as to both propertiesThe borrowers alleged that an agent of the lenders had orally represented to them that in the event of a foreclosure, the lenders would first foreclose on the vacant landThe court, in affirming, observed that the terms of the deeds of trust directly contradicted the borrowers’ claims of wrongdoingMoreover, the borrowers failed to provide an adequate analysis of the case law defining unfairness under § 17500As to the cause of action for intentional infliction of emotional distress, the borrowers did not allege any conduct that could be considered outrageous; the lenders merely exercised their rights under the loan agreementsLeave to amend was properly denied because CivCode, § 2924, subd(a)(1), specifically authorized the recording of the notice of default by the beneficiary’s agent.
Outcome
The court affirmed the judgment.
