Kline v. Turner

87 Cal. App. 4th 1369, 105 Cal. Rptr. 2d 699, 2001 Cal. Daily Op. Serv. 2493, 2001 Daily Journal DAR 3069, 2001 Cal. App. LEXIS 229
CourtCalifornia Court of Appeal
DecidedMarch 27, 2001
DocketNo. D035248
StatusPublished
Cited by61 cases

This text of 87 Cal. App. 4th 1369 (Kline v. Turner) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kline v. Turner, 87 Cal. App. 4th 1369, 105 Cal. Rptr. 2d 699, 2001 Cal. Daily Op. Serv. 2493, 2001 Daily Journal DAR 3069, 2001 Cal. App. LEXIS 229 (Cal. Ct. App. 2001).

Opinions

Opinion

BENKE, Acting P. J.

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]*1372and 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, Priority assured Kline it would stop payment on the check. On Monday, Priority told Kline the check was cashed before the stop payment order.

Several days later Kline met Knight. Knight explained he took the money to cover legal expenses. Knight showed Kline a gun, threatened Kline and his family and told him to “back off.” Fearful of Knight and believing Priority had either been intimidated or believed it appropriate to make the check payable to Knight, Kline did nothing.

On February 2, 1996, Kline received a letter, dated January 19, 1996, from an attorney representing him in an unrelated matter. Enclosed with the letter was a contract between Priority and Knight entered into on August 31, 1990, for the artistic services of Miss Allen and Nem and a copy of the $50,000 check received by Knight on that date. A stamp on the check indicated it was cashed on September 4, 1990, not on August 31, 1990, as Priority had represented to Kline.

Kline believed Priority concluded it was more advantageous to contract with Knight for the services of Miss Allen and Nem and concocted the story of mistakenly giving Knight a check and being unable to cancel it as a means of hiding its fraudulent conduct. On February 1, 1999, Kline sued Priority and Turner for fraud.

Priority and Turner moved for summary judgment, arguing the action was barred by the three-year statute of limitations applicable to fraud. In reply Kline asserted the “discovery rule,” arguing he was not on notice of fraudulent conduct until February 2, 1996, and his action filed on February 1, 1999, was, therefore within the three-year statute of limitations.

The trial court granted Priority and Turner’s motion for summary judgment. It concluded that in September 1990 Kline had reasonable cause to [1373]*1373suspect wrongdoing by Priority and Turner such that a reasonable person would be placed on inquiry. Kline was required to pursue the matter then. The statue of limitations began to run at that time, not with his discovery six years later of particular facts concerning Turner and Priority’s conduct. Judgment was entered for Priority and Turner. This appeal followed.

Discussion

Kline argues the trial court erred in determining his causes of action time-barred. He contends the date of the accrual of his causes of action is a factual issue and should be decided at trial.

A. Standard of Review

A motion for summary judgment is properly granted if the papers submitted show there is no triable issue as to any material fact and the moving party is entitled to a judgment as a matter of law. (Code Civ. Proc., § 437c, subd. (c).) A defendant moving for summary judgment must show either one or more essential elements of the plaintiff’s cause of action cannot be separately established or there is an affirmative defense which bars recovery. If the plaintiff fails to set forth specific facts showing a triable issue of material fact as to that cause of action or defense, summary judgment must be granted. (Code Civ. Proc., § 437c, subds. (n), (o)(2).)

A three-step analysis is employed in ruling on motions for summary judgment. First, the court identifies the issues framed by the pleadings. Next, the court determines, when the moving party is the defendant, whether it has produced evidence showing one or more of the elements of the cause of action cannot be established or there is a complete defense to that cause of action. If the defendant does so, the burden shifts to the plaintiff to show the existence of a triable issue of material fact as to that cause of action or defense. (Zavala v. Arce (1997) 58 Cal.App.4th 915, 925-926 [68 Cal.Rptr.2d 571].)

We independently review the parties’ papers supporting and opposing the motion, using the same method of analysis as the trial court. Essentially, we assume the role of the trial court and apply the same rules and standards. (Zavala v. Arce, supra, 58 Cal.App.4th at p. 925; AARTS Productions, Inc. v. Crocker National Bank (1986) 179 Cal.App.3d 1061, 1064-1065 [225 Cal.Rptr. 203].)

B. Statute of Limitations

An action for relief on the grounds of fraud or mistake must be commenced within three years. However, such action is not deemed accrued [1374]*1374“until the discovery, by the aggrieved party, of the facts constituting the fraud or mistake.” (Code Civ. Proc., § 338, subd. (d).) The courts interpret discovery in this context to mean not when the plaintiff became aware of the specific wrong alleged, but when the plaintiff suspected or should have suspected that an injury was caused by wrongdoing. The statute of limitations begins to run when the plaintiff has information which would put a reasonable person on inquiry. A plaintiff need not be aware of the specific facts necessary to establish a claim since they can be developed in pretrial discovery. Wrong and wrongdoing in this context are understood in their lay and not legal senses. (Jolly v. Eli Lilly & Co. (1988) 44 Cal.3d 1103, 1110-1111 [245 Cal.Rptr. 658, 751 P.2d 923].)

The court in Parsons v. Tickner (1995) 31 Cal.App.4th 1513, 1525 [37 Cal.Rptr.2d 810], a fraud case, referring to the discovery rule, stated: “ ‘Under this rule constructive and presumed notice or knowledge are equivalent to knowledge. So, when the plaintiff has notice or information of circumstances to put a reasonable person on inquiry, or has the opportunity to obtain knowledge from sources open to [her] investigation (such as public records or corporation books), the statute commences to run.’ (3 Witkin, Cal. Procedure [(3d ed. 1985)] Actions, § 454, pp. 484-485.)”

Generally, 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. (Jolly v. Eli Lilly & Co., supra, 44 Cal.3d at p. 1112.)

C. Analysis

The trial court correctly found Kline’s lawsuit was time-barred.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

John Preston Thompson
Sixth Circuit, 2025
Wang v. Plaza Bonita CA2/2
California Court of Appeal, 2025
Maye v. Online Land Sales LLC
E.D. California, 2024
Zhang v. YUAN
N.D. California, 2024
Apex Solutions v. Falls Lake Insurance etc.
California Court of Appeal, 2024
Baclet v. Baclet CA4/3
California Court of Appeal, 2023
Coleman v. Frontier Mission Fellowship CA2/3
California Court of Appeal, 2023
Ali v. Sanofi US Services Inc
N.D. California, 2023
Sarkesian v. Ford Motor Company
S.D. California, 2023
Matthews v. ResMAE Mortgage Corp. CA2/8
California Court of Appeal, 2023
Farrales v. Ford Motor Company
N.D. California, 2022
Vera v. REL-BC, LLC
California Court of Appeal, 2021
Borba v. Erickson CA5
California Court of Appeal, 2021
Barron v. Galvin CA5
California Court of Appeal, 2021
Wang v. Ehang Holdings Limited
N.D. California, 2020

Cite This Page — Counsel Stack

Bluebook (online)
87 Cal. App. 4th 1369, 105 Cal. Rptr. 2d 699, 2001 Cal. Daily Op. Serv. 2493, 2001 Daily Journal DAR 3069, 2001 Cal. App. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kline-v-turner-calctapp-2001.