{"id":945,"date":"2016-04-15T15:02:19","date_gmt":"2016-04-15T22:02:19","guid":{"rendered":"http:\/\/fiduciarydutiesblog.com\/?p=945"},"modified":"2016-04-15T15:02:19","modified_gmt":"2016-04-15T22:02:19","slug":"ferguson-v-yaspan-statute-of-limitations-not-applicable-to-defense-based-on-rescission","status":"publish","type":"post","link":"https:\/\/fresnolawyerblog.com\/?p=945","title":{"rendered":"Ferguson v. Yaspan – Statute of Limitations Not Applicable to Defense Based on Rescission"},"content":{"rendered":"

In a lawsuit based on a contract, one party can seek relief based on the theory of rescission.\u00a0 Rescission can be considered an equitable judicial remedy.\u00a0 Under California Civil Code section 1689, rescission supports \u201cextinction\u201d of the obligation.<\/p>\n

Rescission can be pled as a basis for affirmative relief, or it can asserted as defense to a claim based on contract.\u00a0 Which is what happened in Ferguson v. Yaspan<\/em> (2015) 233 Cal.App.4th 676 \u2013 the defendant asserted rescission as a defense to a contract lawsuit.<\/p>\n

The dispute in Ferguson v. Yaspan<\/em> arose between an attorney (defendant) and his former client (plaintiff).\u00a0 In 1995, the plaintiff sold defendant an interest in a London flat owned by plaintiff.\u00a0 Later, the Fergusons sought to set aside the written agreement.<\/p>\n

\"rescission\"<\/a><\/p>\n

Here\u2019s the interesting part of the decision.\u00a0 The court opined on rescission as a defense, holding that such a defense was not subject to the statute of limitations.\u00a0 Explained the court<\/p>\n

\u201cThe invalidity of a contract may be asserted either as a basis for affirmative relief or as a defense.\u00a0 When a litigant seeks affirmative relief, her claim may be barred if filed outside the statute of limitations period.<\/p>\n

\u201cHowever, where invalidity is raised solely as a defense, there is no limitations period because statutes of limitations are designed to \u2018act as a bar to actions or proceedings\u2019 \u2013\u00a0 not to individual claims or defenses.\u201d<\/p>\n

Thus, a defense based on a claim of rescission is not subject to being struck as pled outside the statute of limitations.<\/p>\n","protected":false},"excerpt":{"rendered":"

In a lawsuit based on a contract, one party can seek relief based on the theory of rescission.\u00a0 Rescission can be considered an equitable judicial remedy.\u00a0 Under California Civil Code section 1689, rescission supports \u201cextinction\u201d of the obligation. Rescission can be pled as a basis for affirmative relief, or it can asserted as defense to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,5],"tags":[],"class_list":["post-945","post","type-post","status-publish","format-standard","hentry","category-case-law","category-developments"],"_links":{"self":[{"href":"https:\/\/fresnolawyerblog.com\/index.php?rest_route=\/wp\/v2\/posts\/945"}],"collection":[{"href":"https:\/\/fresnolawyerblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fresnolawyerblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fresnolawyerblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fresnolawyerblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=945"}],"version-history":[{"count":0,"href":"https:\/\/fresnolawyerblog.com\/index.php?rest_route=\/wp\/v2\/posts\/945\/revisions"}],"wp:attachment":[{"href":"https:\/\/fresnolawyerblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fresnolawyerblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fresnolawyerblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}