Kong

The issue presented in this appeal is whether partners who settle with a partnership creditor and thereby become assignees of a deficiency judgment based on a partnership debt can enforce that judgment against a nonsettling partner. The trial court ruled that such enforcement is permissible and proceeded accordingly.

However, contrary to the trial court’s conclusion, the assignee partners do not acquire the assignor’s rights with respect to the judgment. Rather, the assignment of a joint and several debt to one or more of the co-obligors extinguishes that debt. Consequently, no further action can be maintained on the judgment itself. Therefore, the order issued by the trial court to enforce the assigned judgment must be reversed.

Statement of the Case and Facts

At one time, appellant, Herman Kong, and respondents, Frank Lee, Fred Lee, George Lee, Roderick Chow, Kenneth Chow, Gerald Chow, Howard Lee, Betty Lee, Barbara Lee, Mark Yep and David Yep, were partners in Pergola Garden Apartments Associates (Pergola), a California general partnership. Pergola was formed in 1976 to purchase and manage an apartment complex.

In 1984, Pergola borrowed $1.9 million from Great…