Jones v. Wachovia Bank
230 Cal. App. 4th 935
| Cal. Ct. App. | 2014Background
- Plaintiffs appeal after trial court granted summary judgment on promissory estoppel claim relating to a foreclosure postponement.
- Wachovia allegedly promised to postpone the trustee sale to June 18, 2009 following a April 15, 2009 phone call.
- Trustee sale notices and multiple prior postponements occurred; April 17 sale was postponed to June 8, 2009, not June 18.
- Plaintiffs did not confirm June 18 postponement with Cal-Western; sale occurred June 8, 2009.
- Plaintiffs claimed damages from lost equity and tax consequences, seeking to rely on promissory estoppel despite statutes.
- The trial court held no triable factual issues on detriment or injury and rejected estoppel, granting summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Promissory estoppel elements met? | Jones argues oral postponement induced reliance. | Wachovia contends no valid reliance and no injury. | No triable issue; no detrimental reliance or injury established. |
| Duty under statute of frauds and oral modification | Promissory estoppel should override under §1698. | Oral promises to modify a deed of trust barred; no enforceable promise. | Statute of frauds and lack of enforceable oral modification bar claim. |
| Adequacy of injury/damages proof | Loss of equity and tax consequences supported damages. | No proven injury or calculable damages. | Plaintiffs failed to prove adequate injury or damages. |
| Pleading and evidentiary scope | Allege promissory estoppel in complaint; support later. | Belated theories outside pleadings immaterial. | Promissory estoppel not pleaded; outside pleadings disregarded. |
Key Cases Cited
- Wade v. Markwell & Co., 118 Cal.App.2d 410 (Cal. App. 1953) (equitable estoppel for delayed redemption in pledge context)
- Garcia v. World Savings, FSB, 183 Cal.App.4th 1031 (Cal. App. 2010) (detrimental reliance on postponements; forbearance to cure a loan.)
- Aceves v. U.S. Bank N.A., 192 Cal.App.4th 218 (Cal. App. 2011) (promissory estoppel when homeowners pursue remedies to cure default)
- Raedeke v. Gibraltar Sav. & Loan Assn., 10 Cal.3d 665 (Cal. 1974) (oral modification and section 1698 applicability)
- Estate of Baglione, 65 Cal.2d 192 (Cal. 1966) (unconscionable injury required to enforce estoppel/avoid statute)
- Karlsen v. American Sav. & Loan Assn., 15 Cal.App.3d 112 (Cal. App. 1971) (contract modification concepts under statute of frauds)
- Kajima/Ray Wilson v. Los Angeles County MTA, 23 Cal.4th 305 (Cal. 2000) (Restatement-based promissory estoppel doctrine in California)
- In re: U.S. Ecology, Inc. v. State of California, 129 Cal.App.4th 887 (Cal. App. 2005) (promissory estoppel, standard of review and evidence)