Alliance Laundry Systems v. Parker CA3

FACTS

Alliance manufactures and sells commercial laundry equipment. The company also provides financing for the purchase of such equipment. One of Parker‟s companies, Centre Development LLC (Centre), operated four commercial laundries in Southern

1 California. Parker was also the trustee of the James Underhill Parker Trust (the Parker Trust). From 1999 to 2008, Alliance loaned Centre several million dollars. Each loan was personally guaranteed by Parker. In April 2008, Alliance loaned Centre $445,000. This loan was personally guaranteed by Parker and the Parker Trust. The guaranty provided that the loan was to be secured by a “Short Form Deed of Trust made by [the Parker Trust] and [Parker] (as Trustors) to Stewart Title Company (as Trustee), encumbering the [Kirkwood property] as legally described in the Deed of Trust.” The same month, Parker and the Parker Trust executed and delivered to Alliance the promised deed of trust, which was recorded in the records of Amador County in May 2008. Thereafter, from June to October 2008, Centre executed and delivered to Alliance four additional promissory notes, which refinanced Centre‟s existing loans and provided the company with…