Tuesday, August 15, 2017
PGA West Residential Association v. Hulven International
Cal.App. 4th Dist., Div. 2 (E064270) 8/9/17
Plaintiff alleged that defendant Mork tried to fraudulently insulate the equity in his condominium from creditors by naming Hulven, a sham corporation entirely owned and controlled by Mork, as the beneficiary of a deed of trust and note, and by later directing Hulven International, Inc. to foreclose on the condominium. The court held 1) the former Uniform Fraudulent Transfer Act (later renamed the Uniform Voidable Transactions Act) applied to the alleged fraudulent deed of trust, but 2) plaintiff's claims were extinguished by the expiration of the seven-year limitations period set forth in Civil Code Section 3439.09(c) even though defendant did not raise the statute as a defense because that statute is a statute of repose and not a statute of limitations. Although a defendant must plead a statute of limitations defense, it is the plaintiff who must plead facts showing that a substantive right has not been extinguished by a statute of repose.