Florio

This appeal raises a statutory interpretation issue of first impression, involving the interplay between Code of Civil Procedure section 726, which concerns deficiency judgments after judicial foreclosure sales of real property, and California Uniform Commercial Code section 9501, subdivision (4), the so-called “mixed collateral statute.” We must resolve the following question: When a debtor secures a single obligation with “mixed collateral” (that is, with a combination of real and personal property) and when the secured creditor would otherwise be entitled to a deficiency judgment upon default, may the debtor successfully defend under Code of Civil Procedure section 726, which requires creditors to seek deficiency judgments within three months after a real property foreclosure sale, even if the personal property collateral has not yet been sold?

For the reasons that follow, we find the defense inapplicable and affirm the judgment.

Facts and Proceedings

In connection with a lawsuit unrelated to this appeal, appellants B. Peck Lau, M.D., and Judith Lau (and others) entered into a stipulated settlement with respondents Michael A. Florio, M.D., Mary Ann Florio, Hal D.…