Lezine v. Security Pacific Fin. Services, Inc

In Lezine v. Security Pacific Fin. Services, Inc. (1996) 14 Cal.4th 56, deeds of trust for community property unilaterally executed by the husband were deemed invalid and unenforceable pursuant to former Family Code section 5127 (the predecessor to section 1102) and Droeger v. Friedman, Sloan & Ross (1991). The issue before the Supreme Court was whether the fact the security interests were invalid precluded a judgment lien for the underlying debt, which had been enforced and reduced to judgment in a collection action against the husband. (Lezine, supra, 14 Cal.4th at pp. 59-60.) The court held it did not and that the community estate, including the community real property, was liable for the debt incurred by the husband that had been reduced to a judgment. (Id. at pp. 63-75.) In other words, the loss of the security interest because it had been procured in violation of former Family Code section 5127, did not "extinguish the underlying debt," which, if reduced to judgment, could give rise to a judgment lien. (Lezine, at pp. 70-73.) This simply underscores the point we have made--the fact the community estate may be liable for a debt incurred by a spouse does not trump the specific requirements of section 1102, requiring that both spouses execute any conveyance by them of the community real property. (Lezine, at p. 73 even though community property was subject to a subsequent judgment lien, the purpose of former Family Code section 5127 was still served--"the unauthorized direct transfer by the husband was cancelled".)