## Facts

- A real-estate developer and related parties borrowed construction and purchase-money funds from a savings and loan association.
- The loans were secured by multiple deeds of trust on condominium units in a completed project, including two units subject to individual purchase-money trust deeds.
- After most units were sold, the lender commenced nonjudicial foreclosure under the deeds’ powers of sale against remaining units.
- The borrowers sued for damages and sought to enjoin the foreclosure, requesting a preliminary injunction and offering to post a bond to protect the lender.
- The trial court denied preliminary injunctive relief, finding the borrowers’ interest in the units was essentially a marketing/monetary interest that could be compensated by damages; the lender’s solvency was not disputed.

## Issues

1. Whether a preliminary injunction restraining a nonjudicial foreclosure is proper when the lender seeks only monetary recovery, the borrowers offer a bond sufficient to secure that recovery, and the borrowers’ interest in the property is adequately compensable in damages under Code of Civil Procedure § 526.

## Decision

- The Court of Appeal affirmed the order denying a preliminary injunction.
- The borrowers failed to show “great or irreparable injury” or that “pecuniary compensation will not give adequate relief” as required by Code of Civil Procedure § 526.
- The condominium units were treated as fungible commercial property; any borrower loss was susceptible to valuation and redress through money damages.
- The lender’s claim was for money and could be protected by the offered bond, supporting the conclusion that equitable relief was unnecessary.

## Legal Principles

- A preliminary injunction requires a showing within Code of Civil Procedure § 526, including: (1) great or irreparable injury, or (2) inadequacy of pecuniary compensation.
- “Irreparable injury” generally exists when either (1) the harm is not susceptible to monetary valuation, or (2) the property is so unique that its loss entails intrinsic value not replaceable by money or in kind.
- When the plaintiff’s interest is essentially commercial and monetary relief (including security by bond) can make the parties whole, injunctive relief is improper.
- Appellate review of preliminary injunction rulings is deferential; affirmance is appropriate where the trial court’s findings on the nature of the interest and adequacy of damages support denial under § 526.

## Conclusion

The court upheld denial of a preliminary injunction stopping nonjudicial foreclosure because the borrowers’ asserted harm was compensable in money, the collateral was treated as fungible commercial property, and the lender’s monetary interests could be secured by bond, defeating any showing of irreparable injury or inadequate legal remedy under Code of Civil Procedure § 526.


Jessen v. Keystone Sav. & Loan Ass’n, 142 Cal. App. 3d 454 (Cal. Ct. App. 1983)