Brunzell Construction Co., Inc. v. Smith

Defendant Keith Smith appeals a judgment and an order denying his motion to vacate renewal of a January 30, 1970, judgment against him. (Code Civ. Proc., § 683.170, subd. (a).) We affirm and hold that California Uniform Commercial Code sections 9504 and 9505 do not apply where the creditor does not take possession of the collateral or where the debtor consents to a deficiency judgment.

Facts

In 1967 Jalama Valley Cattle Company (Jalama) executed two $100,000 promissory notes in favor of Transamerica Financial Corporation (Transamerica). Keith Smith, the sole shareholder of Jalama, unconditionally guaranteed the loans. To secure the loans, Jalama granted Transamerica a security interest in its livestock, including a one-third interest in bulls “Max” and “Bard.” After Jalama defaulted in payment of the loans, Brunzell Construction Company, Inc. (Brunzell) acquired Transamerica’s interest in the promissory notes and brought suit against Jalama and Smith.

Jalama and Smith stipulated to a judgment for $251,720, including attorneys’ fees and costs, entered on January 30, 1970. This sum was reduced to $160,129.05 by the court-ordered sale of Jalama’s black angus cattle herd.…