Cadle Co. II, Inc. v. Sundance Financial, Inc.

In this appeal we address the question of when the 10-year statute of limitations begins to run on an action to renew a stipulated judgment. (Code Civ. Proc., § 337.5, subd. (3), all statutory references are to this code unless otherwise specified.) We conclude that the limitations period begins to run when the trial court enters the stipulated judgment, unless the parties agreed to the judgment for the purpose of facilitating an appeal. Accordingly, we affirm the dismissal of this action because it was filed more than 10 years after entry of the stipulated judgment and there is no indication that the parties agreed to the judgment to facilitate an appeal.

FACTUAL AND PROCEDURAL BACKGROUND

Union Bank and Pacific Scene, Inc. (Pacific Scene), entered into a stipulated judgment on April 18, 1996, which awarded $508,475.74 to Union Bank. The Cadle Company II, Inc. (Cadle), later acquired all right, title, and interest to the judgment. On May 8, 2006, Cadle filed the instant complaint against Pacific Scene and Sundance Financial, Inc. (together Sundance), Pacific Scene’s alleged successor in interest. Sundance demurred to the complaint, arguing that the matter was barred by…