SCM NEWS & OPINIONS

Stenquist v. Jmg Holdings LLC, 2016 UT App 180 (Aug. 25, 2016)

In an action to decide whether a trust deed survived when the trustee accepted title to the subject property in lieu of foreclosure, the Utah Court of Appeals held that once the trust deed has been released, the ancillary obligations of the trust deed cannot be enforced, as the trust deed ceases to exist. The trust deed cannot survive without the debt obligations, even though other obligations, such as the duty to defend against other interests, have not been met.