California Appellate Tracker

Further Commentary on Placer Foreclosure v. Afalo

June 7, 2018

This California case is at the intersection of interpleader and foreclosure litigation. A foreclosure trustee interpleaded surplus funds following a foreclosure sale that was challenged by the borrower in a wrongful foreclosure action. It shouldn’t have. An interpleader lies only where the holder of third-party funds may face multiple liabilities, but Civil Code section 2924k sets forth exactly how surplus proceeds should be distributed so there was no such risk. A good reminder that bank attorneys facing multiple demands on escrow or trust funds cannot automatically interplead the funds!

For more expert commentary by Andrew Noble on financial services litigation, click here.

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California Appellate Tracker

Further Commentary on Placer Foreclosure v. Afalo

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