Diller

River Bank America v. Diller

Good Law
1995 Cal. App. LEXIS 970·38 Cal. App. 4th 1400·45 Cal. Rptr. 2d 790·95 Daily Journal DAR 13372·95 Cal. Daily Op. Serv. 7844
Court of Appeal of CaliforniaOctober 3, 1995Docket Nos. A066477, A068152California9,509 words

Opinion

Opinion

Parrilli, J.

We dispose of two related appeals in this opinion. In appeal No. A066477, River Bank America (River Bank) appeals from a summary judgment granted in favor of defendants Sanford N. Diller and Helen P. Diller (individually and as trustees of the DNS Trust) and Prometheus Development Company, Inc. (Prometheus Development). In the underlying action, River Bank sought to enforce guaranties the Dillers and Prometheus Development had executed. The guaranties secured a portion of River Bank’s nonrecourse construction loans to Hacienda Gardens Venture, a limited partnership (Hacienda). River Bank made the loans—totaling $38 million—to finance the construction of a large apartment complex in Pleasanton, California. The trial court concluded the guaranties were unenforceable because they imposed upon the guarantors obligations “larger in amount [or] in other respects more burdensome” than the nonrecourse obligations undertaken by the principal obligor (Hacienda). (Civ. Code, § 2809.) In a cross-appeal, defendants contend the trial court erred when it granted River Bank’s motion for summary adjudication on defendants’ claim of negligent misrepresentation against River Bank.

We…

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