City Consumer Services, Inc. v. Peters

HOWE, Associate Chief Justice:

Defendant Vera Peters appeals from a summary judgment in favor of a nonforec-losing junior lienholder, plaintiff City Consumer Services. City sued Peters on her promissory note after the real property securing the note had been exhausted by a senior lienholder’s foreclosure action. The main issue presented is whether a debtor may invoke Utah Code Ann. § 78-37-1, the “one action rule,” to bar a nonforeclosing junior lienholder from suing on its note.

In April 1981, Peters was the owner of a condominium in Salt Lake County subject to a trust deed in favor of…