In Re Richard J. Adair Marty S. Adair, Debtors. Richard J. Adair Marty S. Adair v. Sunwest Bank Guardian Trust Deed Services
Opinion
Opinion
Richard Adair and Marty Adair (“the Adairs”) appeal the district court’s judgment affirming the bankruptcy court’s grant of summary judgment to Sunwest Bank (“Sunwest”) in the Adairs’ suit seeking to set aside a foreclosure sale on their real property. We affirm.
I. BACKGROUND
The Adairs’ theory suing Sunwest (the lender) was that the lender’s failure to disburse 100 percent of the loan proceeds caused their default and ultimate bankruptcy. They allege that Sunwest induced them to borrow $328,440 on March 30, 1982, for building improvements without advising them that $36,000 in loan points and a one-year interest reserve of $62,400 would be withheld from the loan proceeds actually disbursed.
The Adairs initially sued in Orange County Superior Court. They sought to set aside the trustee’s foreclosure sale on parcels of real property that collateralized three promissory notes executed by the Adairs in favor of Sunwest for $328,440, $450,000 and $60,000.
On November 1, 1985, the Adairs filed a voluntary petition under Chapter 11 of the Bankruptcy Code and applied for removal of their lawsuit to the bankruptcy court. Sunwest obtained relief from the automatic stay pursuant to 11…