Rutherford v. Holt CA2/6
Valentine Rutherford and Christine Rutherford appeal from judgment for US Lease Financing, Inc., and its sole shareholder Gary Holt (collectively Holt), after a court trial (1) on the Rutherfords’ complaint for slander of title and malicious prosecution and (2) on Holt’s cross-complaint against Valentine for breach of a promissory note.
The parties have a long history of litigation arising from hard money loans secured by deeds of trust. The Rutherfords contend they should have prevailed as a matter of law because (1) Holt acted with malice when he brought an action to quiet title to a lot when earlier litigation had established that he had no ownership interest in it; (2) Holt is barred from asserting any claim on the promissory note by the doctrine of res judicata because he could have litigated it in the quiet title action; and (3) the note was not supported by consideration.
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