In the 1984 case, Bank of America v. Daily, the California Court of Appeal held that a bank's set off was an action for purposes of California Civil Procedure Code section 726 (the one action rule). The bank lost over $170,000 in security due to this $10,000. California courts have circumvented the policies behind section 726 by interpreting the one action rule expansively. This Comment argues that debtor protection is no achieved through inequitable creditor remedies and that legislative reform is necessary to achieve the protection that section 726 intended to provide California debtors.
Beth J. Zeitzer,
What Is an Action for Purposes of California Civil Procedure Code Section 726,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol25/iss5/7