Judge: Elaine W. Mandel, Case: 22SMCV00870, Date: 2022-08-25 Tentative Ruling

Case Number: 22SMCV00870    Hearing Date: August 25, 2022    Dept: P

Tentative Ruling
Wolf v. Kohen et al., Case No. 22SMCV00870
Hearing Date August 25, 2022
Defendants Kohen and Haroni’s Demurrer to Complaint

Plaintiff alleges defendant Kohen fraudulently induced her to sign a promissory note for $500,000 secured by a deed of trust on real property. Wolf alleges she was unaware of the nature of the documents when she signed them, and Kohen never provided the promised funds. Kohen assigned the note and deed of trust to defendant Haroni. Wolf sues for declaratory relief and quiet title. The Kohen and Haroni defendants demur on statute of limitations grounds.

There is no codified statute of limitations for a quiet title claim, but courts generally apply the statute of limitations associated with the underlying theory of relief. Muktarian v. Barmby (1965) 63 Cal.2d 558. A lawsuit based on deceit by way of affirmative misrepresentation is subject to a three-year statute of limitations. Kline v. Turner (2001) 867 Cal.App.4th 1369, 1373. A cause of action seeking cancellation of an instrument based on fraud, mistake, lack of consideration or unclean hands is subject to a four-year statute. Cal. Code of Civ. Proc. §343. The statute of limitations on quiet title actions does not begin to run “while the owners are in undisturbed possession of the property.” Mayer v. L&B Real Estate (2008) 43 Cal.4th 1231, 1240.

Defendants argue Wolf knew or should have known of the alleged fraud a decade before the June 10, 2022, the filing date, so the claims are time-barred. According to the complaint, all alleged bases for cancelling the deed of trust occurred no later than 2012.

In opposition, Wolf cites Mayer, arguing the cloud on title did not appear until later. While Wolf’s interpretation of Mayer is correct, it is not clear from the complaint when possession was first disturbed, which would have triggered the statute of limitations. This must be clarified. SUSTAINED with ten days leave to amend.