What is a Cancellation of Instruments?

An “instrument” is “a written paper signed by a person or persons transferring the title to, or giving a lien on real property, or giving a right to a debt or duty.” (Gov. Code, § 27279.) Recordings not affecting title are not instruments. (Sisemore v. Master Financial, Inc. (2007) 151 Cal.App.4th 1388, 1399-1400; Ward v. Super. Ct. (1997) 55 Cal.App.4th 60, 64-65.)

Section 3412 of the Code of Civil Procedure provides for the cancellation of an instrument. (Code of Civ. Proc., § 3412.) It states that a “written instrument, in respect to which there is a reasonable apprehension that if left outstanding it may cause serious injury to a person against whom it is void or voidable, may, upon his application, be so adjudged, and ordered to be delivered up or canceled.” (Code of Civ. Proc., § 3412; Robertson v. Super. Ct. (2001) 90 Cal.App.4th 1319, 1324.)

Cancellation of an instrument is essentially a request for rescission of the instrument. (Bank of America v. Greenbach (1950) 98 Cal.App.2d 220, 228.) The effect of a decree cancelling an instrument is to place the parties where they were before the instrument was made, as if it had never been made. (Id. at 238.) A decree cancelling an instrument is equitable in nature and may be subject to equitable conditions, including reimbursement for the reasonable value of benefits conferred. (Ebbert v. Mercantile Trust Co. (1931) 213 Cal. 496, 501.)

Legal Standard

To plead a right to cancellation of an instrument, a plaintiff must allege the instrument is “void or voidable” and would cause “serious injury” if not canceled. (Saterbak v. JPMorgan Chase Bank, N.A. (2016) 245 Cal.App.4th 808, 818-19; U.S. Bank N.A. v. Naifeh (2016) 1 Cal.App.5th 767, 774; Thompson v. Ioane (2017) 11 Cal.App.5th 1180, 1193-1194.) “The injury referred to in section 3412 is not limited to pecuniary loss; it may be the alteration of one’s position to his prejudice.” (Turner v. Turner (1959) 167 Cal.App.2d 636, 641.)

The plaintiff must allege specific facts, “not mere conclusions, showing the apparent validity of the instrument designated, and point out the reason for asserting that it is actually invalid.” (Ephraim v. Metropolitan Trust Co. (1946) 28 Cal.2d 824, 833-34; Wolfe v. Lipsy (1985) 163 Cal.App.3d 633, 638.)

Promissory fraud is a basis for demonstrating the invalidity of an instrument in an action to cancel an instrument. (Lawrence v. Gayetty (1889) 78 Cal. 126, 131-132.) Notwithstanding the strict common law pleading requirements for causes of actions for damages for fraud (and somewhat surprisingly), general allegations of fraud are sufficient to allege the invalidity of an instrument in the absence of a special demurrer for uncertainty. (Larkin v. Mullen (1900) 128 Cal. 449, 453-454 [general demurrer properly overruled even though fraud alleged in general terms]; see also Campbell v. Genshlea (1919) 180 Cal. 213, 218.)

Statute of Limitations

The statute of limitations for a cause of action for cancellation of instruments is three years if based on fraud, otherwise, the statute is four years. (Zakaessian v. Zakaessian (1945) 70 Cal.App.2d 721, 725.)

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co Oo YN DH RB Ww NY boeN we NY NY NY NR N WY ert — 2298 &PE SK FF Ce AAR ARBEHRAS Larry G. Lushanko, Esq. (SB#69143) [email protected] Brittney L. Lushanko, Esq. (SB#272959) [email protected] LAW OFFICES OF LARRY G. LUSHANKO 1241 East Mission Road Fallbrook, California 92028 Telephone: (760) 728-9899 Facsimile: (760) 728-9499 Attomeys for Cross-Defendant/Cross-Complainant LAURENCE PATTERSON Kner ci D —__C/* —"__ Superior Court of California F County of Butte | L E Depu

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Demurrer - 07/14/2020, 9:00 AM, DEPT 6, atty: Finlay

0m YN DH BF WN YE YN N NY NY NY NY NY NH NO Be Be Be ee ewe eB ew Se oN DHF WHF Soe AAA BDH BS WRIGHT, FINLAY & ZAK, LLP T. Robert Finlay, Esq., SBN 167280 Todd E. Chvat, Esq., SBN 238282 Kristina M. Pelletier, Esq., SBN 279533 4665 MacArthur Court, Suite 200 Newport Beach, CA 92660 Tel: (949) 477-5050; Fax: (949) 608-9142 [email protected] Attorneys for Defendants, CARRINGTON MORTGAGE SERVICES, INC. and DEUTSCHE BANK NATIONAL TRUST COMPANY, AS INDENTURE TRUSTEE, FOR NEW CENTURY H

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Pahl & McCay A Professional Corp 225'W. Santa Clara Suite 1500 San Jose, CA 95113 (408) 286-5100 *4863/003 - 00739440, DOC, 1 BR wWoHN Cm IN DA 10 1 12 13 14 15 16 17 18 19 21 22 23 25 26 27 28 PAHL & McCAY A Professional Law Corporation Ginger L. Sotelo, Esq. (State Bar No. 210429) Lilya Dishchyan, Esq. (State Bar No. 309120) 225 West Santa Clara Street Suite 1500 San Jose, California 95113-1752 Telephone: (408) 286-5100 Facsimile: (408) 286-5722 Email: [email protected]

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Useful Examples
Recent Documents

1-25 of 755 results

Laurance Patterson's Cross Complaint - Cross Complaint - No Fee

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Demurrer - 07/14/2020, 9:00 AM, DEPT 6, atty: Finlay

0m YN DH BF WN YE YN N NY NY NY NY NY NH NO Be Be Be ee ewe eB ew Se oN DHF WHF Soe AAA BDH BS WRIGHT, FINLAY & ZAK, LLP T. Robert Finlay, Esq., SBN 167280 Todd E. Chvat, Esq., SBN 238282 Kristina M. Pelletier, Esq., SBN 279533 4665 MacArthur Court, Suite 200 Newport Beach, CA 92660 Tel: (949) 477-5050; Fax: (949) 608-9142 [email protected] Attorneys for Defendants, CARRINGTON MORTGAGE SERVICES, INC. and DEUTSCHE BANK NATIONAL TRUST COMPANY, AS INDENTURE TRUSTEE, FOR NEW CENTURY H

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Pahl & McCay A Professional Corp 225'W. Santa Clara Suite 1500 San Jose, CA 95113 (408) 286-5100 *4863/003 - 00739440, DOC, 1 BR wWoHN Cm IN DA 10 1 12 13 14 15 16 17 18 19 21 22 23 25 26 27 28 PAHL & McCAY A Professional Law Corporation Ginger L. Sotelo, Esq. (State Bar No. 210429) Lilya Dishchyan, Esq. (State Bar No. 309120) 225 West Santa Clara Street Suite 1500 San Jose, California 95113-1752 Telephone: (408) 286-5100 Facsimile: (408) 286-5722 Email: [email protected]

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cM-110 ATTORNEY OR PARTY WITHOUT ATTORNEY (iiame, State Ger number, and address): FOR COURT USE ONLY Russell K. Ryan 139835 MOTSCHIEDLER, MICHAELIDES, WISHON, BREWER & RYAN, LLP 1690 West Shaw Avenue, Suite 200 Fresno, California 93711 TeLepHone no. (559} 439-4000 FAX NO, (Optionad: (559) 439-5654 E-MAIL ADDRESS (Option): [email protected] ATTORNEY FOR (Nemey Plaintiff KAY M. DEFEHR SUPERIOR COURT OF CALIFORNIA, COUNTY OF FRESNO. street aporess: 1130 O Street MAILING ADDRESS: crv ano ap co

1 2 3 4 5 6 7 8 9 10 ... 31     last » 

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