Harding

MEMORANDUM **

I.

The material facts are not disputed for purposes of this appeal. Mr. John Martin Harding and Mrs. Mary Joan Harding (“the Hardings”) purchased two life insurance policies from New York Life Insurance Company (“New York Life”) in 1984. In reliance on New York Life’s representa *880 tion that the policies would yield a $1 million death benefit after four years of premium payments, the Hardings paid monthly premiums totaling $143,000 between 1984 and 1988. In 1988, New York Life notified the Hardings that the cash value of the policies had diminished and that additional premiums would be required to keep the policies in force. The Hardings ceased making payments on the premiums after the 1988 meeting. In 1998, New York Life notified the Hardings that the policies had lost so much value that they would be terminated. As predicted, the New York Life terminated the policies on April 25, 2000.

The parties agree that the relevant limitations period is three years, pursuant to California Civil Code of Procedure § 338(d). The district court’s determination that plaintiffs fraud action is barred by a statute of limitations is reviewed de novo. See Ventura Mobilehome…