O'NEIL

In this action Gloria C. O’Neil et al. (collectively Judgment Creditors) filed a cross-complaint against cross-defendants General Security Corporation et al. (collectively Refinancers). Judgment Creditors’ cross-complaint sought to have a particular trust deed, which encumbered certain real property in favor of Judgment Creditors and secured a promissory note in which the various Judgment Creditors held fractional interests, declared senior to Refinancers’ trust deed. The cross-complaint also sought an order compelling Refinancers to “marshal assets” by first pursuing other assets allegedly available to repay the indebtedness owed them.

Refinancers moved for judgment on the pleadings as to Judgment Creditors’ cross-complaint. Refinancers’ motion essentially argued that Judgment Creditors, by obtaining a monetary judgment on the underlying note in an earlier action against the debtors, had forfeited any further rights to pursue the security for the note (i.e., the trust deed) and therefore lacked “standing” to pursue the cross-complaint. The trial court granted Refinancers’ motion. Judgment Creditors appeal from the subsequent order dismissing their cross-complaint.

Our…