Heritage Pacific Financial v. Furukawa CA4/2

I. INTRODUCTION

Defendant and respondent Michelle Furukawa purchased certain real property

with two loans, each secured by a separate deed of trust on the property. After Furukawa

stopped repaying the loans, the property was sold at a trustee’s sale pursuant to the senior

trust deed. Plaintiff and appellant Heritage Pacific Financial, LLC (Heritage) acquired

the note secured by the junior deed of trust. Heritage then sued Furukawa based on

claims sounding in fraud and breach of contract.

Furukawa moved for summary judgment, which the trial court granted. The court

ruled that the breach of contract cause of action was barred by the antideficiency rule set

forth in Code of Civil Procedure section 580d1 and the remaining claims were barred by

the three-year statute of limitations applicable to fraud claims under section 338,

subdivision (d).

Heritage appealed. We agree with Furukawa and the trial court that Heritage’s tort

claims are barred by the three-year statute of limitations. As to Heritage’s breach of

contract claim, we conclude that Furukawa has failed to establish that there is no triable

issue of fact as to the applicability of section 580d. In particular,…