Cyr v. McGovran
142 Cal. Rptr. 3d 34
Cal. Ct. App.2012Background
- Appellants sought damages for alleged negligent real estate services by Respondents in a complex option and title cloud scenario.
- Cyr acquired options to purchase six parcels; lender’s option conflicted with Cyr’s, clouding title.
- Lender filed suit in Nov. 2003 for specific performance and recorded lis pendens.
- Appellants Ci, Mesa Vista and Mid-Coast later purchased all parcels despite the cloud.
- Appellants sued in Dec. 2005 for professional negligence against the McGovrans’ agents; trial court granted summary judgment based on the 2-year statute for professional negligence.
- Court affirmed, holding the two-year statute applies and the action is time-barred.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which statute of limitations governs? | Cyr argues 3-year injury to real property | Respondents argue 2-year professional negligence | 2-year applies; injury was to option rights, not real property |
| When did the negligence cause of action accrue? | Appellants purchased parcels within 2 years, claim timely | Accrual upon injury and discovery; harm occurred earlier | Accrual before Dec 2003; complaint filed 12/23/2005 barred |
Key Cases Cited
- Wachovia Bank v. Lifetime Industries, Inc., 145 Cal.App.4th 1039 (Cal. Ct. App. 2006) (options are not estates in land; injury not to property)
- McCoy v. Gustafson, 180 Cal.App.4th 56 (Cal. Ct. App. 2009) (gravamen governs statute of limitations for property injury)
- Angeles Chemical Co. v. Spencer & Jones, 44 Cal.App.4th 112 (Cal. Ct. App. 1996) (negligence damages to real property governed by 3-year period)
- Wheeler v. County of San Bernardino, 76 Cal.App.3d 841 (Cal. Ct. App. 1978) (slander of title not applicable; clouded title issues in property actions)
- Slintak v. Buckeye Retirement Co., L.L.C., Ltd., 139 Cal.App.4th 575 (Cal. Ct. App. 2006) (lis pendens clouds title and affects notices in real property actions)
- Roger E. Smith, Inc. v. SHN Consulting Engineers & Geologists, Inc., 89 Cal.App.4th 638 (Cal. Ct. App. 2001) (professional negligence accrual when appreciable harm occurs)