This section contains the nature of the case and procedural background.

P borrowed $5,000,000 from D. The promissory note was secured by a deed of trust and security agreement. D declared a default and posted the real property, which was the subject of the deed of trust, for foreclosure. D then purchased the land at a public foreclosure sale for the sum of $4,847,903.96, which was the amount of the outstanding debt plus the costs of the sale. D did not sue P for a deficiency balance. P sued D claiming that: (1) the fair market value of the real property foreclosed on was $10,529,000; (2) D bid an unconscionably low price for the property at the foreclosure sale; (3) P and D were in a 'trust arrangement,' giving rise to a duty to make an honest effort to secure a fair price for the collateral at the foreclosure sale; and (4) this conduct constituted constructive fraud, actual fraud, and an intentional tort. On its second complaint, P added that D engaged in a policy of not compensating debtors for the fair market value of foreclosed properties, and alleged that D breached its duty of good faith and fair dealing. D filed a motion for summary judgment in that P had failed to state a cognizable cause of action. P did not present evidence of or claims regarding irregularities with respect to the sale, nor did P ask the court to set the sale aside. P appealed.

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