Also known as: surplus · deficiency · surplus/deficiency
Written by attorneys · grounded in primary & secondary sources — see below
The amount by which proceeds from a sale or disposition of property exceed or fall short of the secured obligation after payment of costs and prior claims. In foreclosure the mortgagee may obtain a deficiency judgment for any shortfall unless statute prohibits it, while any excess is paid first to junior lienholders and then to the mortgagor.
Steven Silva defaulted on a mortgage held by Southland Foods. The property sold at foreclosure for less than the outstanding debt plus costs. Southland Foods obtained a deficiency judgment against Steven Silva for the difference because state law permitted it.
Skylar Sullivan contracted with Synergy Systems for custom software. The delivered product lacked key promised features. Skylar Sullivan recovered damages measured by the loss in value caused by the deficiency in performance.
Spencer Silver, who suffered from a diagnosed mental condition, drove through a red light and struck Sophia Singh. Sophia Singh sued for negligence. The court held Spencer Silver to the reasonable-person standard despite the mental deficiency.
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Santiago Sanchez contracted with Sapphire Holdings for a specific shipment of perishable goods. Half the goods deteriorated before risk of loss passed. Santiago Sanchez accepted the goods with a reduction in the contract price reflecting the deficiency in quantity and quality.
Selena Singh died leaving no spouse but two children. The estate contained household furnishings and an encumbered automobile whose equity totaled less than the statutory exempt amount. The children received additional estate assets to make up the deficiency in exempt property.
Sierra Solutions, a limited partnership, wound up its affairs and paid all creditors. A surplus remained from the sale of partnership assets. The surplus was distributed first to partners for unreturned contributions and then among partners according to their distribution rights.
A mortgagee may obtain a deficiency judgment when the foreclosure sale price is less than the debt plus costs, unless state law prohibits or limits such judgments. The judgment is for the difference between the obligation and the sale price.
Any surplus after satisfying the foreclosing mortgage and costs is first paid to junior lienholders in order of priority and then to the mortgagor.
No. Unless the actor is a child, insanity or other mental deficiency does not relieve the actor from liability for conduct that fails to meet the reasonable-person standard.
…over $150. The ensuing reduction in sales would harm consumers who value the information at, say, $200. They get consumer surplus of $50 under the current arrangement but would cease to buy if the price rose substantially. If because of high elasticity of demand in the consumer segment of the market the only way to…