“Samora chose to accept … misrepresentations rather than … investigate the transaction after discovering the document was a warranty deed with the name of an individual [Wasia] she had never met.” (Opinion). Samora was the victim of a complex real estate fraud. As part of the fraud, she relied on misrepresentations about a warranty deed she signed, and unknowingly transferring title to Wasia. Wasia deeded the house to Saxon for a loan. Deutsche Bank (DB), Saxon’s trustee, sought to quiet title. The appellate court held that the Samora-Wasia deed was valid. As a consequence: 1) Samora’s claims accrued when she alerted the DA to the fraud, 2) there was no fraud in the factum because she knew she signed a deed, and 3) DB (who was not “closely related” to Saxon) was a holder in due course. Thus, the deed was not voided and the Wasia-Saxon deed was not a spurious lien. Title quieted in Saxon.
Tag Archives: Accrual
Deutsche Bank Trust Co. Americas, and Saxon Mortgage, v. Veronica E. Samora, 2013COA81 (May 23, 2013)
No one likes to split winnings. But, in contingency fee agreements, if the client wins, the attorney gets some of the winnings. In this case, three firms agree to represent a client on a contingent basis. One firm leaves about halfway through. The client settles and the two remaining firms split the one-third fee. They cut the early-departing firm out of the fees. There is no contract among the firms regarding their split. The third firm brings a quantum meruit claim (unjust enrichment) seeking their third of the fees. The Court, upholding a court of appeals decision, held that even if an attorney has no right to claim quantum meruit from the client (because of the lack of due notice to the client), such claims can still be brought against co-counsel. Without deciding the statute of limitations period is 3 years, the Court held that a claim accrues at the time of settlement or judgment.