Connelly v. Derwinski

961 F.2d 129 Michael L. CONNELLY; Peter Mason; Thomas P. Jones; Lawrence J. Walsh; David L. Burrows, individually and on behalf of all others in the State of Oregon similarly situated, Plaintiffs-Appellants, v. Edward J. DERWINSKI, Secretary, Veterans Affairs; United States of America; Veterans Administration, Defendants-Appellees. No. 89-35543. United States Court of Appeals, Ninth Circuit. Argued and Submitted Dec. 10, 1991. Decided April 1, 1992. David A. Leen, Leen & Moore, Seattle, Wash., and Margaretta Eakin, Portland, Or., for plaintiffs-appellants. Malcolm L. Stewart, U.S. Dept. of Justice, Washington, D.C., for defendants-appellees. Appeal from the United States District Court for the District of Oregon. Before: NORRIS, BEEZER, and LEAVY, Circuit Judges. WILLIAM A. NORRIS, Circuit Judge: 1 We are asked to determine, once again, whether a state anti-deficiency scheme is preempted by Department of Veteran Affairs (VA) regulations that authorize the VA to collect deficiencies on VA-guaranteed home loans. This case involves Oregon law, which forbids a deficiency judgment after either a judicial or a non-judicial foreclosure sale. See Or.Rev.Stat. § 86.770(2). In…