Solomont v. Polk Development Co.

In May of 1959 appellant company purchased a parcel of real property in Santa Maria for cash and a deed of trust (covering the unpaid balance) which was made subordinate to a construction loan thereafter obtained in the sum of $300,000 for a 50-unit apartment building. Subsequently a “cost breakdown” submitted to the bank by appellant Rudnick certified that the total cost of construction would be $355,600. Construction of the building commenced on June 3, 1959. At or about this same time appellant Rudnick separately contacted the respondents, stating to them that he needed $80,000 to complete…