397 P.3d 1055
Ariz. Ct. App.2017Background
- In 2008 the Woodses executed a note secured by a deed of trust on Gilbert, AZ property. BAC purchased the property at a trustee’s sale and recorded a trustee’s deed in February 2010. Bank of America later owned BAC’s interest.
- In September 2014 Bank of America executed a limited power of attorney (LPOA) appointing Carrington as attorney-in-fact with authority, among other things, to execute deeds for property acquired through foreclosure.
- In February 2016 Carrington, acting under the LPOA on behalf of Bank of America, conveyed the property to itself by grant deed.
- Carrington served the Woodses a written Notice to Vacate on March 2, 2016 and sued for forcible detainer on April 18, 2016. The Woodses moved to dismiss as time-barred and contested Carrington’s superior right to possession.
- The superior court denied the Woodses’ motions, held for Carrington after a bench trial, and the Woodses appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did the FED cause of action accrue for statute-of-limitations purposes? | Accrues when written demand is served (2016); action filed within two years, so timely. | Accrues when trustee’s deed was recorded (2010); action filed in 2016 is time-barred. | Accrues at commencement of the forcible detainer — i.e., upon written demand in 2016; action timely. |
| Whether Carrington established superior right of possession in an FED action | Carrington relied on recorded trustee’s deed and grant deed, LPOA authority, testimony that Carrington owned and paid taxes/insurance. | Woodses argued LPOA did not authorize transfer or properly identify officers executing the grant deed. | Carrington presented sufficient evidence of superior right of possession; disputes over title are not litigable in FED actions. |
Key Cases Cited
- Cook v. Town of Pinetop-Lakeside, 232 Ariz. 173, 303 P.3d 67 (App. 2013) (standard of review for statute-of-limitations accrual questions reviewed de novo)
- Casa Grande Tr. Co. v. Superior Court ex rel. Pinal Cty., 8 Ariz. App. 163, 444 P.2d 521 (1968) (forcible detainer is a summary, speedy statutory remedy to obtain possession)
- Curtis v. Morris, 186 Ariz. 534, 925 P.2d 259 (1996) (FED actions are limited to right of actual possession; title merits are not adjudicated)
- Fenter v. Homestead Dev. & Tr. Co., 3 Ariz. App. 248, 413 P.2d 579 (1966) (acknowledges that FED may be timely when brought within two years of written demand)
- Grady v. Barth ex rel. Cty. of Maricopa, 233 Ariz. 318, 312 P.3d 117 (App. 2013) (occupant after trustee’s sale is a tenant at sufferance)
- RREEF Mgmt. Co. v. Camex Prod., Inc., 190 Ariz. 75, 945 P.2d 386 (App. 1997) (attorneys’ fees under A.R.S. § 12-341.01 are unavailable in FED actions)