Chodosh v. Robertson CA4/1
In this case we reverse an order entered in favor of a surety. The surety had issued an injunction bond after the holders of junior liens and the debtor had obtained a preliminary injunction preventing the defendants, senior lienholders, from foreclosing on a deed of trust. Although the parties agree the senior lienholders in the underlying action were the intended beneficiaries of the injunction bond, the surety erroneously named one of the junior lienholders as the beneficiary of the bond.
After the injunction had been lifted and the senior lienholders had foreclosed on their deed of trust, they attempted to recover their losses from the surety. At that point, the parties discovered the surety's erroneous designation of one of the junior lienholders as the beneficiary of the bond and the senior lienholders asked the trial court to correct the bond.
The trial court refused to correct the bond to conform to the parties' intention and entered judgment in favor of the sure
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