Kline

In 1999 plaintiff Thomas H. Kline sued defendants Priority Records, Inc. (Priority), a recording company, and its president Bryan Turner for alleged fraudulent acts occurring in 1990. Turner and Priority moved for summary judgment, arguing the action was time-barred. The trial court granted the motion. Judgment for Priority and Turner followed. Kline appeals.

Background

In 1990 Kline, a talent agent, entered into an oral production contract through Turner with Priority for the services of a musical group, “Miss Allen *1372 and Nem.” Priority agreed to immediately pay Kline $50,000 with an additional $50,000 to be paid after the completion of a master recording. On Friday August 31, 1990, Kline sent a business associate, Marion Knight, to Priority to pick up a check for $50,000 owed Kline under the contract. Turner and Kline agreed the check would be made payable to Kline. When Knight did not immediately return, Kline called Priority and learned that at Knight’s insistence the check was made payable to him. Kline was told Knight had stated the change in payee was “okay with Mr. Kline.” When Kline stated in “no uncertain terms” the payee should not have been changed,…

I respectfully dissent, as I disagree with the conclusion reached both by the trial court and the majority that plaintiff Thomas H. Kline’s fraud claims are barred by the statute of limitations. The majority concedes that “[gjenerally, statute of limitations issues raise questions of fact that must be tried; however, when the uncontradicted facts are susceptible of only one legitimate inference, summary judgment is proper.” (Maj. opn., ante, at p. 1374.) However, it concludes that “[t]he only legitimate inference based on the uncontroverted facts is that in September 1990 a reasonable person in Kline’s position would conclude he was injured as the result not only of Knight’s wrongdoing but of Priority’s as well.” (Maj. opn., ante, at p. 1374.) The basis for this conclusion is said to be that the facts known to Kline placed him on inquiry that defendant Priority Records, Inc. (Priority) did something wrong and had he proceeded against Priority, discovery would have revealed its fraudulent conduct. In 1990, the only claims against Priority would have been for breach of contract, negligence or some other similar theory based upon Priority’s placing Marion Knight’s name on the check…