Great Western Bank v. Kong

Opinion

LEVY, J.

The issue presented in this appeal is whether partners who settle with a partnership creditor and thereby become assignees of a deficiency judgment based on a partnership debt can enforce that judgment against a nonsettling partner. The trial court ruled that such enforcement is permissible and proceeded accordingly.

However, contrary to the trial court’s conclusion, the assignee partners do not acquire the assignor’s rights with respect to the judgment. Rather, the assignment of a joint and several debt to one or more of the co-obligors extinguishes that debt. Consequently, no…