Schuhart

In this action for foreclosure based on delinquent payments on assessment bonds, the trial court granted the bondholder’s motion for summary judgment. The owners of the property securing the bonds contend the trial court improperly calculated penalties owed on the bonds, and improperly granted summary judgment without considering their affirmative defenses.

The judgment is reversed, and the matter is remanded for further proceedings in accordance with this opinion.

Factual and Procedural Background

Thuel V. Schuhart is the owner of two assessment district bonds issued by the Pleasanton Township County Water District in 1965 (bond nos. 3 and 4). The bonds were issued pursuant to the Improvement Act of 1,911 (Sts. & Hy. Code, § 5000 et seq.) in order to construct public improvements for the benefit of certain parcels of real property.

Pursuant to the Improvement Act, assessments are levied against each parcel of real property benefitted by improvements, and the assessment becomes a lien against the parcel. (§§ 5343, 5360, 6446.) A separate bond representing each unpaid assessment may then be issued to finance the improvements. (§§ 6400, 6420, 6422.)

Bond numbers 3 and…