Pederson v. ROCKY MOUNTAIN BANK
272 P.3d 663
Mont.2012Background
- Construction loan of $202,500 in May 2007 to Pedersons for land and manufactured home; conditional approval for 30-year mortgage at 6% issued.
- Mortgage closing did not occur in Sept 2007 due to Pedersons' deteriorated credit; bank did not extend construction loan after maturity in Nov 2007.
- March 10, 2008, Bank financed the construction loan through three short-term loans totaling $217,000 at 7% interest.
- Pedersons made imperfect payments through 2008–2009; Bank reported delinquency on the Construction Loan.
- August 2009 Pedersons attempted refinancing but could not; alleged undisclosed options and delayed deed release; Pedersons filed suit March 14, 2011, after complaint signed March 10, 2011.
- District court dismissed claims as time-barred under statutes of limitations; Pedersons appeal sole issue whether dismissal was proper.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the claims were timely under accrual rules | Pedersons argue accrual delayed until August 2009. | Bank argues accrual occurred March 10, 2008, and limitations expired by March 14, 2011. | Claims time-barred; accrual March 10, 2008; dismissal affirmed. |
| Whether discovery rule tolled the limitations period | Non-disclosure self-concealing; tolling warranted. | No fiduciary duty; ignorance not tolling. | No tolling; no fiduciary duty; discovery rule inapplicable. |
| Whether a fiduciary duty or advisory relationship existed | Bank owed extensive disclosure as advisor. | Bank relation is debtor-creditor; no fiduciary duty absent advisor role. | No fiduciary duty; no obligation to disclose all alternatives. |
| Whether damages existed at signing of loan agreements | Damages contingent on disbursement; accrual delayed. | Damages existed when contracts signed; obligation to fund upon conditions met. | Damages present at signing; accrual March 10, 2008. |
| Whether the complaint adequately alleged tolling or concealment facts | Allegations show concealment and nondisclosure. | Record shows no concealment; standard case law limits tolling. | Allegations insufficient to toll; claims barred by statute. |
Key Cases Cited
- Cechovic v. Hardin & Assocs., 273 Mont. 104, 902 P.2d 520 (1995) (three-year limit for negligence claims under § 27-2-204(1) (accrual rules))
- Brewington v. Employers Fire Ins. Co., 1999 MT 312, 297 Mont. 243, 992 P.2d 237 (1999) (three-year limit for common law bad faith)
- Osterman v. Sears, Roebuck & Co., 2003 MT 327, 318 Mont. 342, 80 P.3d 435 (2003) (two-year limits for constructive fraud and consumer protection act)
- Shiplet v. First Security Bank of Livingston, Inc., 234 Mont. 166, 762 P.2d 242 (1988) (accrual when fraud facts discovered; discovery rule not tolled)
- Blackburn v. Blue Mt. Women’s Clinic, 286 Mont. 60, 951 P.2d 1 (1997) (non-disclosure generally self-concealing but not applicable here)
- Spencer v. Beck, 358 Mont. 295, 245 P.3d 21 (2010) (de novo review of Rule 12(b)(6) dismissal standards)
- McCoy v. First Citizens Bank, 2006 MT 307, 335 Mont. 1, 148 P.3d 677 (2006) (no fiduciary duty arising in bank-customer relations absent advisor role)
- Cartwright v. Equitable Life Assur. Socy. of the United States, 276 Mont. 1, 914 P.2d 976 (1995) (ignorance of facts not tolling statute of limitations)