Lawyers Title Ins. v. Dedmore
In this consolidated appeal, plaintiff Lawyers Title Insurance Company (LTIC) challenges the trial court’s judgment in favor of defendants Jason P. Dedmore and Lisa Biddle-Dedmore (Dedmores), issued after a court trial. LTIC, as an assignee of a home equity line of credit (HELOC) issued by E-Trade, sued the Dedmores following the short sale of their residence. On appeal, LTIC contends the trial court erroneously applied Code of Civil Procedure section 726, also known as the “one form of action rule,†to prevent LTIC from seeking repayment of the HELOC. The one-action rule and the antideficiency laws protect borrowers in default on loans secured by real property. (See §§ 726, 580a-580e.) They are designed to limit the remedies available to lenders for recovery of such debt. We conclude the trial court did not err in preventing LTIC from obtaining repayment of the HELOC by the Dedmores and, accordingly affirm the judgment.
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