First Security Bank Utah N.A. v. Banberry

FACTS. - First Security held a first trust deed, and Kimball a second trust deed, on certain property owned by Banberry. Kimball was the initial borrower on the first trust deed, which Banberry assumed and Horman guaranteed. Banberry defaulted on both trust deeds, and both trustees began foreclosure. In settlement with First Security, the Horman Trust agreed to pay $1.6 million and essentially to take over First Securitys position. Kimball was not informed of the settlement terms.