Bowen v. Yniguez

Richard and Steven Yniguez (defendants) bought an inn from Bowen (plaintiff), making a down payment and signing an installment promissory note. When they defaulted, Bowen foreclosed and bought the inn back at the foreclosure sale for about $100,000 less than what was owed on the note. Bowen then sued for bad-faith waste, presenting photo and video evidence of mold, torn-up floorboards, and trash throughout the property, plus a letter from Richard admitting Steven had mismanaged the inn and used it as a party house. The Yniguezes argued any damage simply resulted from the financial troubles that also caused their default. The trial court sided with Bowen, awarding $55,000 (the cost of repairs plus lost profits during repairs) — less than the $100,000 foreclosure deficiency — and the Yniguezes appealed.