Riverisland Ruling Gives Calif. Fraud Victims Fairer Shake

Law360, New York (January 23, 2013, 3:08 PM EST) -- In a decision that will have a dramatic effect on contract and lender liability litigation, the California Supreme Court decided in Riverisland Cold Storage Inc. v. Fresno-Madera Production Credit Association, Case No. S190581, that the parol evidence rule does not bar the introduction of evidence of fraud, even if the misrepresentations directly contradict the terms of a written contract. In so ruling, the Court directly overturned its decision in Bank of America etc. Assn. v. Pendergrass, which has been the law in California, albeit reluctantly, for...
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