Pacific Valley Bank v. Schwenke

Opinion

BRAUER, J.

This appeal presents a novel question in the field of mortgage and trust deed law: Is the co-maker of a promissory note entitled to enforce the provisions of Code of Civil Procedure section 726 (the so-called “one-action rule”) even though he is not a party to the deed of trust securing the debt? We decide that he is so entitled.

Statement of Facts

There is no dispute about the facts which follow. Robert Schwenke and Terry O’Brien were partners in a business known as S. & O.B. Enterprises which engaged in property development. On April 15, 1981, Robert and Ute Schwenke…