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Financial Services Litigation Bulletin - March 2012
The Arizona Court of Appeals Expands Anti-Deficiency Protection for Borrowers

03/07/2012

The Arizona Court of Appeals Expands Anti-Deficiency Protection for Borrowers

By Chris Bayley and Evans O'Brien

On December 27, 2011, the Arizona Court of Appeals issued a decision that, if upheld on appeal, will negatively impact a lender’s ability to obtain a deficiency judgment under certain circumstances. See M&I Marshall & Ilsley Bank v. Mueller, 2011 Ariz. App. LEXIS 216 (Dec. 27, 2011). M&I Marshall and Ilsley Bank (M&I) recently appealed the Court of Appeals’ decision in M&I v. Mueller to the Arizona Supreme Court. M&I v. Mueller is a significant decision that marks a departure from the case law interpreting Arizona’s anti-deficiency statutes over the past 20 years. The purpose of this article is to alert you to the M&I v. Mueller decision and its potential impact, if affirmed on appeal.

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