Mead

The owners of a parcel of bare land signed a long-term ground lease with a developer, who planned to improve the property with a commercial building. To facilitate that construction, the owners executed a deed of trust in favor of the developer’s construction lender. Ultimately, the developer defaulted on the construction loan and the assignee of the lender foreclosed on the owner’s fee interest.

The owners sued the developer, the lender, and the lender’s assignee for damages and other relief. As to the lender, their theories primarily relied upon their assertion that the deed of trust was, in substance, a surety agreement. Their action against the lender was dismissed when they declined to amend their complaint after a demurrer was sustained to each count alleged. The owners appeal from the order of dismissal and from the postjudgment order awarding attorney’s fees to the lender.

While we agree that the owners sufficiently pleaded that they were sureties rather than principal obligors, the owners did not ultimately demonstrate that the trial court erred in sustaining the demurrers and awarding attorney’s fees. Accordingly, we affirm.

Standards of Review

In evaluating…