Consolidated Capital Income Trust v. Khaloghli

Opinion

CROSBY, J.

On cross motions for summary judgment, the superior court ruled for Khosro Khaloghli, an individual guarantor of a multimillion-dollar note and deed of trust on an apartment complex located in Texas, and against Consolidated Capital Income Trust, the lender, who brought this action on the note after it acquired the subject property in a nonjudicial foreclosure. Khaloghli successfully argued that Consolidated is not entitled to what amounts to a deficiency judgment because it destroyed his subrogation rights against the debtor by electing a nonjudicial foreclosure and, under…