Union Bank v. Gradsky

Plaintiff, Union Bank (“Bank”), appeals from a judgment of dismissal, entered after the demurrer of defendant Max Gradsky (‘ ‘ Max ”) to the complaint was sustained without leave to amend. The trial court dismissed the action on the ground that section 580d of the Code of Civil Procedure shielded a guarantor of a note secured by a first deed of trust from liability for the deficiency remaining after a nonjudicial sale of the security.

The appeal presents a question of first impression in California. We hold that the creditor cannot recover from the guarantor the unpaid balance upon the note…