The borrowers brought suit against the first and second trust deed holders alleging the first imposed improper charges and aided in a conspiracy to cause a wrongful foreclosure by the second. The borrower also included a claim for unfair business practices under California law. The second trust deed holder foreclosed on the property and the first trust deed holder was eventually paid off from the sale of the property.

The Court affirmed summary judgment for the first trust deed holder finding no evidence of any conspiracy or resulting damage to the borrower. The evidence was clear that the borrower was in default on her loan payments, and there was no evidence that the lender did anything improper. The Court noted that the borrower twice failed to submit proof of coverage resulting in force placed insurance with premiums advanced by the first trust deed holder. Accordingly, the borrower’s various claims, including unfair business practices, emotional distress, and negligence were barred.

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