INTERNATIONAL REAL ESTATE SOLUTIONS, INC., Plaintiff-Respondent,
GORDON ARAVE, THOMAS ARAVE, and BRENT ARAVE, Defendants-Appellants
2014 Opinion No. 141
Appeal from the District Court of the Seventh Judicial District of the State of Idaho, Bingham County. Hon. David C. Nye, District Judge.
The judgment of the district court is affirmed.
Kirton McConkie, Lehi, Utah, for appellants. Richard John Armstrong argued.
Jones Chartered, Pocatello, for respondent. Jack H. Robison argued.
HORTON, Justice. Chief Justice BURDICK, Justices EISMANN, J. JONES and Justice Pro Tem WALTERS, CONCUR.
Gordon, Thomas, and Brent Arave appeal the district court's decision dismissing their motion to compel International Real Estate Solutions, Inc. (International Real Estate) to record a satisfaction of judgment. On a motion for reconsideration, the district court concluded that a final default judgment entered against the Araves in Utah for breach of a guaranty and fraud, which was domesticated in Idaho under Idaho Code section 10-1302, had not been satisfied by the foreclosure sale of property not owned by the Araves. The Araves argue on appeal that the judgment against them should be offset by the value of the property that was foreclosed upon. We affirm.
I. FACTUAL AND PROCEDURAL BACKGROUND
On July 1, 2011, International Real Estate issued a short-term, $300,000 loan to B.T.G. Investments, Inc. (B.T.G.) for use as earnest money on a larger $30 million loan from another lender. B.T.G executed a promissory note in favor of International Real Estate promising to pay the principal sum of $300,000, plus fees and interest, on or before September 29, 2011 (the Promissory Note). The Promissory Note was signed by Thomas Arave as the manager of B.T.G., along with
Gordon and Brent Arave. As security for the loan, B.T.G. granted International Real Estate a first priority Deed of Trust to property owned by B.T.G. located in Blackfoot, Idaho (the Property).
As additional security for the loan, Gordon, Thomas, and Brent Arave signed a personal guaranty in favor of International Real Estate (the Guaranty). Under the terms of the Guaranty, the Araves, jointly and severally, guaranteed the full ...