If the full credit bid rule is extended to bar fraud actions against third parties, can appellant recover damages from a lender?

If the full credit bid rule is extended to bar fraud actions against third parties, appellant will be precluded from proving its actual loss due to the fiction the rule indulges that the lender sustained no actual loss. If there is no such loss, there is no action for fraud and therefore no right to the punitive damages that might otherwise lie. (See Sumitomo Bank v. Taurus Developers, Inc., supra, 185 Cal.App.3d at p. 221, fn. 4, 229 Cal.Rptr. 719.) Such an inequitable result cannot persuasively be rationalized.

[27 Cal.App.4th 235]