Brummell and River Bank were distinguished in California Bank & Trust v. Lawlor

In Brummell and River Bank were distinguished in California Bank & Trust v. Lawlor (2013) 222 Cal.App.4th 625, the court affirmed an order granting summary judgment against the defendant guarantors. The court reasoned the defendants were not the primary obligors on the loans because there was legal separation between them and the borrowing entities, which were a limited liability company and a limited partnership. (Id. at p. 638.) The court also rejected the defendants' argument that the principal purpose of the entities was to hold title to the real property security for the loans, since there was no indication the entities were improperly formed or failed to observe the necessary formalities that usually protect their owners from corporate liabilities. (Id. at p. 639.) The court also held there was nothing unusual about a lender requesting financial information about a guarantor, and there was no evidence the lender did not also request information from the borrowing entities. (Id. at p. 640.)