CALIFORNIA BANK & TRUST, Plaintiff and Appellant, v. THOMAS DELPONTI et al., Defendants and Respondents;ADVENT, INC., Plaintiff and Appellant, v. CALFORNIA BANK & TRUST, Defendant, Cross-complainant and Appellant; THOMAS DELPONTI et al., Cross-defendants and Respondents., 232 Cal. App. 4th 162

Summary

HOLDINGS: [1]-In a case in which a bank sued a developer and two guarantors for a deficiency following a trustee's sale of the deed of trust, there was substantial evidence to support a judgment in favor of the guarantors; [2]-The guarantors did everything expected of them and performed according to the new agreement to the extent the bank permitted; [3]-Public policy required the appellate court to read Civ. Code, § 2856, in a manner that would prevent the bank from capitalizing upon its own fraud or willful misconduct; [4]-It would have been a violation of public policy to enforce the guarantors' waivers of defenses to payment of the note where the bank willfully breached the loan agreement, causing the default.