Filed
11/25/02
CERTIFIED FOR PARTIAL PUBLICATION*
IN THE COURT OF APPEAL OF
THE STATE OF CALIFORNIA
FIFTH APPELLATE DISTRICT
SUSAN
WANGER,
Plaintiff
and Appellant,
v.
EMC MORTGAGE CORPORATION,
Defendant
and Respondent.
F037422
(Super. Ct.
No. 604565-2)
OPINION
APPEAL from
a judgment of the Superior Court of Fresno County. Stephen J.
Kane and Edward
Sarkisian, Jr., Judges.
John L.
Flowers for Plaintiff and Appellant.
Rosenthal,
Withem & Zeff, Michael L. Withem and Matthew D. Reinstein for
Defendant
and Respondent.
-ooOoo-
Appellant
Susan Wanger appeals
from the grant of summary
judgment in favor of
the mortgage
company that foreclosed upon real estate that secured her loan. Wanger
contends
triable issues of material fact exist concerning her claims for breach of
contract,
negligence,
violation of statutory duties, and interference with prospective economic
advantage. We agree and reverse judgment.
*Pursuant to California Rules of Court, rules 976(b)
and 976.1, this opinion is certified
for publication with the
exception of parts I., II., III., V., VI., and VII. of DISCUSSION.
2.
PROCEDURAL BACKGROUND
Wanger filed
a complaint on January 28, 1998, to set aside the trustee’s sale of a
single
family residential real estate located on West Alluvial Avenue in Fresno,
California
(the Property). After a series of demurrers, on November 22, 1999, Wanger
filed her
fifth amended complaint against respondent EMC Mortgage Corporation (EMC)
and others.
The fifth amended complaint alleges claims for breach of contract,
negligence,
violation of statutory duties, and interference with prospective economic
advantage.
On August
21, 2000, EMC filed a motion for summary judgment or in the
alternative
summary adjudication, a separate statement of undisputed facts, and
supporting
declarations. On September 8, 2000, Wanger filed an opposition to the
motion for
summary judgment, a response to EMC’s separate statement, and supporting
declarations.
On September 15, 2000, EMC filed evidentiary objections to the
declaration
of Wanger and to exhibits A through Q attached to the declaration of her
attorney.
The court
issued a written tentative ruling granting the motion for summary
judgment.
Wanger did not request oral argument. On September 21, 2000, the superior
court
adopted its tentative ruling as the order of the court and sustained EMC’s
evidentiary
objections to five documents attached as exhibits D, G, K, M and Q to the
declaration
of Wanger’s attorney. Wanger filed a timely notice of appeal.
FACTUAL BACKGROUND
In 1991,
Wanger obtained a loan from First California Mortgage Company (First
California)1 and signed a promissory note and a deed of
trust on the Property. In October
1993, Wanger
and First California discussed a loan modification reducing the interest
1For purposes of this opinion, we refer to First
California Mortgage Company and
Mortgage Service America
Co., a company with which it appears to have merged, as First
California.
3.
rate and the
monthly payments. A modification document was sent to Wanger, which
she signed
and returned to First California. Wanger thought that the modification had
become
effective, but uncertainty arose as to whether the modification was effective.
Part of this
uncertainty appears to have been caused when First California was unable to
locate the
loan file.
First
California eventually took the position that the modification was not
effective. Wanger had not been making
monthly payments under the loan and, based on
the original loan terms, First California
claimed $26,616.96 was owed. Wanger paid
$24,999.35 by cashier check on February 3,
1995, but continued to dispute the amount
owed and claimed violations of the Real
Estate Settlement Procedures Act of 1974
(RESPA), as amended, 12 United States Code
section 2601 et seq. Also, in February
1995, Wanger
leased the Property to a husband and wife and, presumably, she had
moved from
the Property before renting it.
In April
1995, Wanger asserts she reached an agreement with First California to
resolve her
claims. Under the agreement, First California was to credit the sum of
$7,352.75
against her loan and Wanger was to commence regular monthly payments of
$1,470.55 on
June 1, 1995. From July through November of 1995, Wanger claims she
sent her
monthly mortgage payments to First California.
In the
meantime, First California sold Wanger’s loan to EMC. The transfer was
effective on
April 17, 1995. Both First California and EMC sent notice of the transfer to
Wanger at
the Property address. However, Wanger had moved to Washington and did
not receive
these notices. In an April 14, 1995, letter, Wanger had notified First
California of
her new mailing address in Seattle.
In September
1995, Wanger deeded the Property to her daughter, Lisa Marie
Keller. In
her deposition testimony, Wanger testified Keller was the executor of her
estate and
she transferred title to the Property to Keller for estate planning purposes.
In December
1995, EMC caused the law firm acting as trustee under the deed of
trust to
file a notice of default. Wanger states she first learned of EMC and its rights
as
4.
assignee of
the note and deed of trust on December 9, 1995, when she received a notice
of trustee’s
sale from the trustee. As a result of Wanger’s communications with the
trustee,
this notice of trustee’s sale was rescinded. Also in December, Wanger obtained
the eviction
of the tenants who had stopped paying rent, and she listed the Property for
sale with a
real estate broker.
During 1996
and 1997, Wanger and EMC were not able to settle their dispute.
EMC resumed
nonjudicial foreclosure proceedings. A notice of default was recorded on
September
16, 1997. EMC purchased the Property with a credit bid at the January 13,
1998,
trustee’s sale. Two weeks later, Wanger began her lawsuit against EMC and the
trustee. The
law firm that acted as trustee under the deed of trust settled with Wanger in
June 1999
and is no longer involved in this lawsuit.
DISCUSSION
I. Wanger Did Not Waive the Right to Appeal*
EMC contends
that “Wanger waived the right to appeal the Summary Judgment
when she
accepted the trial court’s tentative ruling without oral argument.” We reject
this argument
because, among other things, it would not advance the economical use of
judicial
resources. As to the legal issue, we will not create a new bright line rule
that
waiver of
the right to appeal must be implied when a party does not pursue oral argument
after a trial court has issued its tentative
ruling. As to the factual issues of intent and
authorization
raised under the general principles of law governing waiver of the right to
appeal,
there is an insufficient basis for implying that counsel for Wanger intended to
relinquish
that right and Wanger authorized its relinquishment. (Cf. Linsk v. Linsk (1969)
70 Cal.2d
272, 278; 1 Witkin, Cal. Procedure (4th ed. 1997) Attorneys, § 283, pp. 351-
352 [an express waiver by counsel made without consideration
or benefit to appellant
must be
authorized by appellant].)
*See footnote, ante, page 1.
5.
II. Standard of Review for Summary Judgment*
The
standards of review applicable to a motion for summary judgment are well
known and we
do not undertake to reiterate all of the rules here. (See Code Civ. Proc.,
§ 437c
(hereafter section 437c); Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th
826
(Aguilar); Brantley v. Pisaro (1996) 42
Cal.App.4th 1591.) Nevertheless, we set forth
some of the
general principles governing motions for summary judgment or summary
adjudication
as background for the more specific principles that are significant in this
case.
A. General Principles
We independently review whether a triable
issue of material fact exists and
whether the moving party is entitled to
summary judgment as a matter of law. (Merrill v.
Navegar, Inc. (2001) 26 Cal.4th 465, 476.) Notwithstanding
the rule of independent
appellate
review of the existence of a triable issue of material fact, an abuse of
discretion
standard is
applied to the superior court’s rulings on (1) evidentiary objections (Walker v.
Countrywide Home Loans, Inc. (2002) 98 Cal.App.4th 1158, 1169) and (2)
matters
committed to
its discretion by the express language of section 437c. (See id., subds. (b),
(e).)
A triable issue of fact exists when the evidence
reasonably permits the trier of
fact, under
the applicable standard of proof, to find the purportedly contested fact in
favor
of the party
opposing the motion. (Aguilar, supra, 25 Cal.4th at p. 850.)
A defendant
moving for summary judgment bears the burden of persuasion
throughout
the legal analysis of the motion and bears the initial burden of producing
evidence “to
make a prima facie showing of the nonexistence of any triable issue of
material fact
.…” (Aguilar, supra, 25 Cal.4th at p. 850.) If the moving party
carries the
*See footnote, ante, page 1.
6.
burden of
production, then it shifts to the opposing party to make a prima facie showing
of the
existence of a triable issue of fact. (Ibid.)
Before
analyzing either the showing made by the moving party (step two) or the
showing made
the opposing party (step three), the first step for a court analyzing a
motion for
summary judgment is to “identify the issues framed by the pleadings” because
the motion
is directed to the opponent’s allegations and “showing there is no factual
basis
for relief
on any theory reasonably contemplated by the opponent’s pleading.” (AARTS
Productions, Inc. v. Crocker National Bank (1986) 179
Cal.App.3d 1061, 1064; see
Brantley v. Pisaro, supra, 42 Cal.App.4th at p. 1602 [describing the
three-step analysis].)
B. Specific Principles
This appeal
raises questions that require the application of specific principles
regarding
the identification of issues framed by the pleadings, the identification of
undisputed
facts, and the review of evidence and the inferences drawn from that
evidence.
1. Issue
Identification
The moving
party’s contribution to the first step of identifying the issues framed
by the pleadings
is set forth in the documents supporting its motion, which include: “(1)
Notice of
motion by [moving party] for summary judgment
or summary adjudication or
both; [¶]
(2) Separate statement of undisputed material facts in support of [moving
party’s] motion for summary
judgment or summary adjudication or both; [and] [¶] (3)
Memorandum
of points and authorities in support of [moving party’s] motion for
summary
judgment or summary adjudication or both .…” (Cal. Rules of Court, rule
342(c).)2
When a moving
party seeks summary
adjudication, “whether separately or as an
alternative
to the motion for summary judgment, the specific cause of action, affirmative
2All further rule references are to rule 342 of
California Rules of Court.
7.
defense,
claims for damages, or issues of duty must be stated specifically in the notice
of
motion and
be repeated, verbatim, in the separate statement of undisputed material facts.”
(Rule
342(b).) Similarly, Rule 342(d) provides, “The Separate Statement of Undisputed
Material
Facts in support of a motion must separately identify each cause of action,
claim, issue
of duty or affirmative defense, and each supporting material fact claimed to
be without
dispute with respect to the cause of action, claim, issue of duty, or affirmative
defense.”
When a case,
like this one, is poorly pled, the first step of identifying the issues
framed by
the pleadings requires more effort and has increased importance. In this case,
the fifth
amended complaint may be regarded as poorly pled because it contains four sets
of
paragraphs grouped together that are labeled as causes of action, but those
paragraph
groups
contain more than one theory of liability.3 For instance, the third count for breach
of statutory
duties refers to violations of the provisions of RESPA and violations of “the
provisions
of Civil Code Sections 2924(b), (f) and (h) [sic].” Thus, what Wanger refers
to as her
third cause of action actually contains multiple causes of action, i.e.,
theories of
liability.
Both EMC’s
separate statement and notice of motion state EMC is seeking
summary
adjudication of the following issue:
“ISSUE –
Each of [Wanger’s] Causes of Action must fail as a matter
of law
because there is no evidence to support her claims that EMC …
either breached
a written agreement with her or violated an applicable
statute in
its handling of her loan, through and beyond foreclosure.”
The catchall
manner in which EMC chose to frame the issues to be summarily
adjudicated
creates two problems. First, as argued by Wanger, EMC failed to comply
3For purposes of this opinion, (1) each of the four
sets of paragraphs grouped together in
the fifth amended
complaint and labeled by Wanger as a “cause of action” shall be referred to as
a “count” (see 6 Witkin,
Cal. Procedure (4th ed. 1997) Proceedings Without Trial, § 242, p. 657)
and (2) the term “cause of
action,” consistent with its meaning in section 437c, subdivision (f),
shall mean a separate
theory of liability. (See Lilienthal &
Fowler v. Superior Court (1993)
12
Cal.App.4th 1848, 1853.)
8.
with the
requirements of Rule 342(d). Second, it is difficult to determine if EMC has
addressed
all of the theories of liability reasonably contemplated by the fifth amended
complaint.
a. Compliance with Rule 342
Wanger argues
EMC violated Rule 342(d) by not separately identifying each
cause of
action in its separate statement and then separately identifying each material
fact
without
dispute with respect to
the cause of action. EMC’s single, catchall statement of
the issues does
not comply with Rule 342(d) as it applies to motions for summary
adjudication.
A single, catchall statement covering four counts containing several causes
of action
wrongly creates the impression that each of the facts following the statement
of
the issue is
material to each cause of action and, therefore, a dispute as to any one of
those facts
precludes summary adjudication as to each cause of action. One consequence
of the
single, catchall statement of the issues is that the review of the motion by the
superior
court and this court is more burdensome because the courts must identify (1)
the
specific
theories of liability challenged by the motion and (2) the facts that are
material to
each of the
challenged theories of liability.
Nevertheless,
Wanger had adequate notice of the ground on which EMC sought to
eliminate some of Wanger’s theories of liability and, thus,
the superior court did not
abuse its
discretion by failing to deny EMC’s motion as procedurally defective. (See
Frazee v. Seely (2002) 95
Cal.App.4th 627, 636 [moving party’s failure to comply with
Rule 342 is,
in court’s discretion, proper grounds to deny motion].)
However, the
preferred course is to enforce the requirement that a moving party
must
identify the undisputed facts that relate to a particular cause of action or
other issue
to be
summarily adjudicated by setting forth the issue and immediately following it
with
the facts
material to that issue in one column and the supporting evidence in another
column. (See
Rule 342(h).) After the statement of the first issue to be adjudicated and
the material
facts and supporting evidence, the second issue to be adjudicated should be
set forth,
followed by the material facts and supporting evidence. In this case, it would
9.
not have
been erroneous to summarily deny the motion without prejudice to EMC
refiling it
with a more specific,4 properly organized
separate statement that separately
stated the
issues to be summarily adjudicated and identified which facts were material to
which causes
of action, i.e., theories of liability.
b. Identification of theories of liability
pled
The
identification of the issue to be adjudicated is important because a motion for
summary
adjudication may be granted only if it completely disposed of “a cause of
action, an
affirmative defense, a claim for damages, or an issue of duty.” (Code Civ.
Proc., §
437c, subd. (f)(1).) In this case, some or all of the counts in the fifth
amended
complaint
contain more than one cause of action for purposes of summary adjudication.
In such a
situation, a defendant may choose to move for summary adjudication of
each cause
of action even if it is combined with other causes of action in a single count
in
the
complaint. (6 Witkin, Cal. Procedure, supra, Proceedings Without Trial, § 242, p.
657.)
Conversely, a defendant, like EMC, may choose to challenge an entire count
containing
more than one cause of action, rather than challenging each cause of action
separately. The
latter choice has its risks, especially when the moving party’s separate
statement
fails to comply with Rule 342. One risk is that a moving party may fail to
identify a
theory of liability reasonably contemplated by the opponent’s pleadings and
that theory
may survive the motion for summary adjudication and defeat the motion for
summary
judgment. In addition, a dispute over a fact material to one cause of action,
but
not material
to other causes of action in the same count, will save the entire count. Once
we have
determined that a fact material to one theory of liability in a count is in
dispute,
we will end
our analysis as to the entire count because of the broad way in which EMC
framed the
issue to be adjudicated. Concerns for procedural due process preclude
4For illustrative purposes, a more specific statement
of an issue to be summarily
adjudicated would have
been: “ISSUE No. [] — The cause of action for violation of RESPA
fails because EMC complied
with the provisions requiring notice of a servicing transfer.” (See
Rule 342(h).)
10.
consideration
of whether other causes of action pled in the count could have been
summarily
adjudicated on the record before us. In particular, the party opposing the
request was
not put on notice of a narrower request. (See 3 Weil & Brown, Cal. Practice
Guide: Civil
Procedure Before Trial (The Rutter Group 2002) ¶¶ 10:88-10:89, p. 10-31
(rev. #1,
2002) [the rationale for not deciding more narrow issues is that the opposing
party may
have limited the triable issues of fact it raised to defeat the motion without
intending to
concede other issues].)
The
application of these principles to the counts pled in this case will be
addressed
in the parts
of the Discussion dealing with particular counts.
2.
Identification of Undisputed Material Facts
Section
437c, subdivision (b) requires the parties to identify all the material facts
upon which
they rely. This requirement is stated with more particularity in Rule 342(d)
which
provides: “The Separate Statement of Undisputed Material Facts in support of a
motion must
separately identify … each supporting material fact claimed to be without
dispute with
respect to the cause of action, claim, issue of duty, or affirmative defense.”
Consequently,
the parties must include in their respective separate statements all the facts
upon which
the motion or the opposition is founded; the superior court is not required to
search for
the presence of a relevant fact elsewhere in the record.
Whether a
superior court is subject to an absolute prohibition on consideration of
facts and
evidence not referenced in the separate statements is an issue that we do not
reach in
this case because the decision of the superior court did not rely on facts or
evidence not
referenced in the separate statements. A conflict over this question exists
between the
Second District, which has adopted the “Golden Rule of Summary
Adjudication”
prohibiting consideration of a fact not set forth in the separate statements
(United Community Church v. Garcin (1991) 231
Cal.App.3d 327, 337; see Roger H.
Proulx & Co. v. Crest-Liners, Inc. (2002) 98 Cal.App.4th 182, 198) and the
Fourth
District,
which disagrees with this rule. (See San Diego Watercrafts, Inc. v. Wells Fargo
Bank, N.A. (2002) 102 Cal.App.4th 308, 311.)
11.
In the
present case, EMC’s separate statement sets forth 17 separately numbered
facts that
it contended were undisputed. Wanger conceded six of these; the matters
disputed by
Wanger will be addressed in the part of the Discussion to which the facts are
relevant.
3. Evidence and
Inferences
The
connection between a material fact and the evidence that establishes whether
or not it is
disputed is made by the parties in their separate statements. Each of the
material
facts stated in the moving party’s separate statement “shall be followed by a
reference to
the supporting evidence.” (Code Civ. Proc., § 437c, subd. (b).) Similarly,
each
material fact an opposing party contends is disputed shall be included in the
opposing
party’s separate statement and “shall be followed by a reference to the
supporting
evidence.” (Ibid.) The evidence
supporting each party’s position concerning
a particular
material fact must be set forth in the second column of its separate statement
along with a
citation, including reference to the exhibit, title, page and line numbers, to
where the
evidence can be found. (Rule 342(d), (f).)
A material
fact can be established or controverted by direct evidence or by an
inference reasonably
drawn from the evidence. Therefore, in analyzing whether or not
the material
facts are in dispute, we must consider all of the evidence and all of the
inferences
reasonably drawn therefrom, and must view such evidence in the light most
favorable to
the opposing party. (Aguilar, supra, 25 Cal.4th at p. 843.)
An issue of
material fact may not be resolved based on inferences, if contradicted
by other
inferences or evidence. (Code Civ. Proc., § 437c, subd. (c); Aguilar, supra, 25
Cal.4th at
p. 856.) “[T]he court may not weigh the plaintiff’s evidence or inferences
against the
defendants’ as though it were sitting as the trier of fact,” but must determine
the question
of law of “what any evidence or inference could show or imply to a
reasonable trier of fact.” (Aguilar, at p. 856.) Where the evidence and
inferences would
allow a
reasonable trier of fact to find the underlying fact in favor of a plaintiff in
12.
accordance
with the applicable standard of proof, then a defendant’s motion for summary
judgment
must be denied. (Id. at p. 850.)
A reviewing
court must consider all the evidence properly identified in the papers
submitted,
“except that to which objections have been made and sustained by the
court ….”
(Code Civ. Proc., § 437c, subd. (c); Barber v. Marina Sailing, Inc. (1995) 36
Cal.App.4th
558, 561, fn. 2.) Where a plaintiff does not challenge the superior court’s
ruling
sustaining a moving defendant’s objections to evidence offered in opposition to
the
summary
judgment motion, “any issues concerning the correctness of the trial court’s
evidentiary
rulings have been waived. [Citations.] We therefore consider all such
evidence to
have been ‘properly excluded.’ [Citation.]” (Lopez v. Baca (2002) 98
Cal.App.4th
1008, 1014-1015.)
In this
case, the trial court sustained EMC’s objections to certain documents
attached as
exhibits D, G, K, M and Q to the declaration of counsel for Wanger. Wanger
has
challenged those rulings in her appeal.
III. Breach of Contract*
EMC contends
Wanger’s breach of contract claim must fail because (1) the
purported
1993 loan modification never became a binding and enforceable contract or, if
it did,
Wanger breached the modification document by failing to pay property taxes; (2)
the reinstatement
provisions in the deed of trust required Wanger to pay the entire loan
arrearage,
which she did not do; and (3) Wanger’s failure to perform her obligations to
pay
principal and interest and to pay property taxes and insurance precludes her claim
of
breach.
A. 1993 Loan Modification Agreement
1. Undisputed
Facts from EMC’s Separate Statement
EMC’s
separate statement establishes as undisputed the facts set forth in the
following
two paragraphs.
*See footnote, ante, page 1.
13.
Wanger claims
to have signed a two-page loan modification agreement in 1993,
but admits
that she never saw any exhibits to it. Wanger claims the 1993 loan
modification
agreement reduced her monthly principal and interest payment, which had
been
$1,470.55, by approximately $300. In a April 14, 1995, letter to First
California,
Wanger
stated she was confirming an agreement to settle damages on her loan and
“[r]egular
loan payments will commence on June 1, 1995 in the amount of $1470.55.”
Wanger
admits (1) she never received any letters written by First California
confirming
that her
loan was actually modified in 1993, and (2) she did not have the purported 1993
loan
modification document notarized or recorded. For loans guaranteed by the
Federal
National
Mortgage Association (Fannie Mae), a Fannie Mae approval may be a
prerequisite
for a modification, but it in no way obligates either the lender or the
borrower to
actually enter into the loan agreement.
Wanger made
no property tax payments directly to the taxing authority after 1992.
2. EMC’s
Inferences and Legal Contentions
Based on the
foregoing facts, EMC infers (1) First California did not sign the 1993
loan
modification agreement; (2) the parties did not intend the 1993 modification to
be a
binding
contract unless it was signed on behalf of First California, notarized, and
recorded;
and (3) assuming the 1993 modification was binding, Wanger breached its
terms by not
paying property taxes as required by paragraph 4 of the loan modification
agreement.
EMC contends
Wanger’s contract claim based on the 1993 modification must fail
because
there is no signed writing that satisfies the statute of frauds contained in
Civil
Code section
1624 and because Wanger is unable to establish an essential element of her
contract claim,
i.e., that she performed her obligations under the contract. (See BAJI
No. 10.85.)
3. Wanger’s
Inferences and Legal Contentions
In response,
Wanger advocates the competing inferences that (1) First California
signed and
then lost the fully executed 1993 modification or, alternatively, the 1993
14.
modification
became binding when she signed it and (2) she was not required to pay the
Property
taxes directly to the taxing authority. Wanger infers First California signed
the
1993
modification based on the following evidence.
Wanger
testified in deposition that she learned First California signed the
document by
talking with Donna Mazzone of First California. Wanger’s declaration says
that she was
told in a telephone conversation with First California that the modification
of her loan
was effective as of November 1993. In addition, First California prepared the
1993
modification by filling in blanks on a form agreement and sending the
modification
to Wanger.
It also sent her a copy of Fannie Mae’s October 7, 1993, letter approving the
modification.
From these statements and acts by First California, Wanger infers First
California
signed the modification or, alternatively, intended to be bound by its written
offer once
Wanger expressed her acceptance by signing it. Wanger argues these
inferences
are reasonable because, among other things, First California would not have
forwarded
her the Fannie Mae approval letter if it intended to reject the very terms it
had
considered
and placed in the form used for the 1993 modification.
As to the
payment of property taxes, Wanger claims the payment was to be made
by the
lender from an impound account established from part of the monthly payment
and, therefore,
she was not contractually obliged to pay property taxes directly to the
taxing
authority.
4. Analysis of
Inferences and Legal Contentions
a. Signature on the 1993 modification
The issue of
whether or not First California signed the 1993 modification is a
question of
fact. Because of the conflicting inferences that may be drawn from the
evidence,
the issue is triable. (Code Civ. Proc., § 437c, subd. (c).) The inability to
locate
a signed
copy of the 1993 modification does not preclude a claim that it was breached.
In
Robinson v. Thornton (1969) 271
Cal.App.2d 605, the plaintiff was able to prove the
existence
and terms of an enforceable contract to repurchase land using an unsigned
photocopy of
the document and other parol evidence.
15.
In addition,
EMC has not established the 1993 modification is subject to the
statute of
frauds set forth in Civil Code section 1624. EMC does not identify, nor is it
apparent,
which of that statute’s seven provisions may apply. First, subdivision (a)(1)
of
Civil Code
section 16245 does not apply
because the 1993 modification might have been
performed in
a year. (See Lacy v. Bennett (1962) 207
Cal.App.2d 796, 800-801
[performance
within a year of oral agreement for “a long-term loan” was possible though
not
probable; statute of frauds in Civ. Code, § 1624 did not apply].) Second, Civil
Code
section
1624, subdivision (a)(6)6 does not apply
because Wanger is not a real property
purchaser
who assumed indebtedness secured
by a deed of trust. Third, Civil Code
section
1624, subdivision (a)(7) does not apply to contracts to extend credit secured
only
by a
single-family residential property.
If, on
remand, EMC does not show that a statute of frauds requires the 1993
modification
to be signed on behalf of First California, then Wanger may be able to
establish
the 1993 modification is a binding contract without a signature. “Whether it
was the
parties’ mutual intention that their oral agreement to the terms contained in a
proposed
written agreement should be binding immediately [or upon offeree’s signature]
is to be
determined from the surrounding facts and circumstances of a particular case
and
is a
question of fact for the trial court. (Schwartz v. Shapiro (1964) 229
Cal.App.2d 238,
248 …; Columbia Pictures Corp. v. DeToth [(1948)] 87
Cal.App.2d [620,] 629.)
Evidence as
to the parties’ understanding and intent in taking what actions they did take
is
admissible to ascertain when or whether a binding agreement was ever reached.”
(Banner Entertainment, Inc. v. Superior Court (1998) 62
Cal.App.4th 348, 358.)
5Civil Code section 1624, subdivision (a)(1) requires
a writing subscribed by the party to
be charged when the
agreement “by its terms is not to be performed within a year from the
making thereof.”