Riverisland Cold Storage, Inc. v. Fresno-Madera Prod. Credit Ass'n, F058434
Fraud exception to the parol evidence ruleRiverisland Cold Storage, Inc. v. Fresno-Madera Prod. Credit Ass'n, F058434
, concerned plaintiffs' suit against defendant-creditor alleging causes of action for fraud, negligent misrepresentation, rescission, and reformation, arising from a breach of a written forbearance agreement. In reversing the trial court's grant of defendant's motion for summary judgment, the court held that, because plaintiffs' evidence of misrepresentations fell within the fraud exception to the parol evidence rule, the evidence should have been admitted to raise a triable issue of material fact in opposition to defendant's motion.
As the court wrote: "We conclude that the Pendergrass court did not
intend its limitation on the fraud exception to the parol evidence rule
to extend beyond evidence of promissory fraud. Like the Greene court,
we decline to apply its limits where the party seeking admission of the
parol evidence has alleged that the other party misrepresented the
content of the written contract and thereby induced execution of the
contract. Plaintiffs' extrinsic evidence of the alleged
misrepresentations made by defendant's representative should have been
admitted in opposition to defendant's motion for summary judgment."