Tuesday, March 21, 2017
Bank of New York Mellon v. Citibank
Defendant refinanced its own home equity line of credit (HELOC) loan and, almost simultaneously, plaintiff refinanced defendant's second loan. The HELOC account was paid down to zero, but not closed, and additional funds were subsequently loaned under the terms of the HELOC. The court held that plaintiff stated a cause of action for equitable subrogation, and that the 3-year statute of limitations under C.C.P. Section 338 did not apply because the action was not in the nature of relief from a statutory violation, fraud or mistake. The court also held that the doctrine of equitable subordination did not apply because this was not a case of "replacement and modification" of a senior mortgage by the same lender.
Cal.App. 2nd Dist. (B262899) 2/16/17