The parol evidence rule protects the integrity of written contracts by making their terms the exclusive evidence of the parties’ agreement, except if there is fraud. In Bank of America v. Pendergrass (1935) 4 Cal.2d 258, 263, [48 P.2d 659, 661], the California Supreme Court adopted a limitation on the fraud exception: evidence offered to prove […]
Superior Court Told To Bow Out Of Retaining Jurisdiction.
The parties had a disagreement about a lease. The superior court retaining jurisdiction after trial “to make further orders, including injunctions, if necessary in the future to effectuate and or enforce the Court’s judgment.” The appellate court reversed that portion of the judgment, stating: “We are concerned with the court retaining jurisdiction for the life of […]
Lawyer Equitably Estopped From Claiming No Referral Fee Due.
A referring plaintiff’s firm referred a potential class action case to a lawyer who specializes in class actions. The specialty lawyer promised to pay the referring firm one-third of any legal fees recovered. The client consented in writing to the referral fee. The specialty lawyer selected a different class representative than the one referred by […]
No Insurance Coverage For Water Damage.
Property damage resulted after a toilet malfunctioned when it failed to shut off the intake of water and, because there was blockage in the sewer line, the toilet overflowed. Exclusion in the insurance contract says the policy excludes any “loss or damage caused directly or indirectly by . . . [w]ater that backs up or […]
Parol Evidence Admissible & Statute Of Limitations Explained In Real Estate Sales Contract Twist.
Buyer failed to reconvey property to seller after paying off her debts secured by the home in exchange for the return of the purchase price and payment of a service fee as orally promised by buyer. The seller’s broker was supposed to memorialize the terms of the deal into a writing, but the written contract […]
Arbitration Provision In Insurance Policy, But Not In Application, Enforceable.
Defendants moved to compel arbitration based on an arbitration provision in the insurance contract between the parties. The trial court denied the motion, ruling that the arbitration provision was unenforceable because it was not disclosed in the application for the policy. The appellate court ruled the case should have been ordered to arbitration as the […]
Written Employment Agreement With Parent Company Does Not Preclude Implied In Fact Employment Agreement With Subsidiary.
The Federal Deposit Insurance Corporation [FDIC] issued a cease and desist order requiring an employer investment and loan company to replace its senior management and take other measures to improve its lending practices. The next month, plaintiff and the parent company of the employer entered into a written employment contract stating plaintiff would be employed […]
Summary Judgment Reversed On Issue Of Agency Between Auto Club And Tow Truck Company.
Plaintiff was an Auto Club member who requested roadside assistance for a flat tire, and the Auto Club dispatched a flat bed car carrier to a “very dangerous, narrow, dark” section of the Long Beach freeway. The tow truck driver, a technician certified by Auto Club in 1998, decided to transport the disabled car to […]
Defendant Entitled To Fees In Defeating Breach Of Contract Claim, Despite Losing Claim For Promissory Estoppel.
The contract provided the prevailing party in any dispute between the parties shall recover attorney fees. A defendant successfully defeated a claim for breach of contract but lost on a claim of promissory estoppel, and the trial court denied his request for fees. The appellate court reversed, stating: “We hold such a defendant is entitled […]
Without A License, Contractor Worked For Nothing.
A tribal corporation brought suit against a contractor for the return of funds it paid for work, alleging the contractor was not licensed. The trial court granted summary judgment in favor of the tribal corporation. The Court of Appeal found the trial court abused its discretion when it summarily sustained all 39 of the tribal […]
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