Thompson v. Smith

Swanson, J. —

Robert L. Smith appeals from a summary judgment in favor of Verne Thompson in a collection action on a promissory note. Smith contends that the trial court erred in permitting Thompson to recover a deficiency judgment after Thompson sold the property securing the note.

In April 1982, Thompson sold Smith a single-family residence for $58,000. Pursuant to the purchase and sales agreement, Smith borrowed $20,000 from private investors, who were secured by a first deed of trust. Smith then made a $15,000 down payment on the house and executed a $43,000 promissory note to Thompson,…