Residential Capital, LLC v. CAL-WESTERNRE CONVEYANCE CORP.

This action arises out of a nonjudicial foreclosure sale conducted under the power of sale in a trust deed encumbering residential real property (property). Plaintiff Residential Capital, LLC (Residential Capital), submitted the high bid at the sale. However, defendant Cal-Westem Reconveyance Corporation (Cal-Westem), the trastee under the trust deed, did not deliver to Residential Capital a trustee’s deed to the property because it learned after the bidding that the trustor (Arvizus) and the beneficiary (Bank One) under the trust deed had agreed to postpone the sale. (Civ. Code, § 2924g, subd. (c)(2).) Residential Capital sued CalWestem and Bank One (together defendants) for damages, alleging causes of action for breach of contract and negligence. The trial court granted defendants’ motion for summary judgment and entered judgment for the defendants. Residential Capital timely appealed the judgment.

Residential Capital contends that by making the high bid at the foreclosure sale it entered into a binding contract with Cal-Westem and its principal, Bank One, to purchase the property, and that it is entitled to breach of contract damages under section 3306. It argues the…