Paradigm Hotel Mortgage Fund v. Sioux Falls Hotel Co.

KONENKAMP, Circuit Judge (on reassignment).

Sioux Falls Hotel Company, Inc. (Hotel) and Steven C. Willis (Willis) appeal the trial court’s grant of summary judgment to Paradigm Hotel Mortgage Fund (Paradigm), a partnership, et al, in a foreclosure action against Hotel, Willis (collectively, defendants) and others on a defaulted mortgage loan. We affirm, in part, reverse, in part, and remand.

BACKGROUND

In 1989, Hotel and its managing principals, Willis and Yale Trustin (Trustin), negotiated with Paradigm for a $500,000 mortgage loan to purchase real property for a motel site in Sioux Falls.…