Grand Teton Mountain Investments, LLC v. Beach Properties, LLC

We consider cross-appeals involving foreclosure sale proceeds. Only one claim of error is well taken. The trial court should have directed the net surplus to the foreclosed landowner, not to a non-party with no interest in the property. We affirm in part, reverse in part, and remand for entry of a new judgment.

Background

Gary Prewitt and respondent William Borders are equal owners and members of Backwater Jacks, an LLC that operated a bar and restaurant. U.S. Bank lent Backwater Jacks $1.1 million, secured by a first deed of trust on Backwater Jacks’ land and personally guaranteed by Borders…