Powers

Statement of Facts Plaintiff is a rural real estate developer. On multiple occasions beginning in 1977 he has purchased parcels of undeveloped land, built a house in which he and his wife have resided, and then sold the improved property for a profit.

1 In 2002, plaintiff acquired for development 265 acres of harvested timberland in Caspar, California on the Mendocino coast (Caspar property). The purchase price was approximately $685,000. Plaintiff approached his “good friend” and neighbor Richard Yaski to obtain financing for the balance of the purchase price over the $400,000 that plaintiff invested from his own funds. Plaintiff testified he was “not sure” he could have obtained financing from a bank and believed private financing “would be good for both of us.” In December 2002, plaintiff executed a promissory note for $375,000 payable to Yaski and secured by a deed of trust on the Caspar property. Interest was set at 8 percent, which was the rate proposed by plaintiff based on then-current bank rates. Over the following years, plaintiff obtained a series of additional loans from Yaski to develop the property, each secured by a deed of trust. Plaintiff explained that he…