Monday, a Santa Ana Superior Court Judge took under submission the elimination of the Statute of Limitations in contract law. Several creditors expressed concern about the idea. Significantly more debtors expressed relief. If deeds of trust and other lien documents can be overturned long after the Statute has lapsed, this could mean a debtor revolution.
However, most attorneys asked about the possibility expressed strong doubts any judge would decide to eliminate the Statute of Limitations in contract actions. Orange County is only one venue and appellate courts would not put up with it," one Los Angeles County appellate attorney pointed out.
The case in question involves a debtor who signed and notarized a deed of trust and promissory note six years ago and now seeks to have them thrown out. He claims he intended to defraud the government when he took out the documents to secure his debt. Court documents reveal banking experts have verified the debt. The debtor said he wanted to wrack up debts before declaring a bankruptcy he never filed. Estoppel issues are said to also be involved. No evidence has been presented to establish any wrongdoing of any other parties.
A couple of Los Angeles judges asked about the implications said the idea was absurd and expressed confidence that the Orange County judge will end up upholding the Statute, the note and the deed of trust.
If upheld, a decision for the man would certainly threaten to bring down Wall Street and possibly result in several bank closures. For the debtors, it could mean an end to mortgage foreclosures. Here is an odd question. If the man's reasoning is correct, why isn't he in jail? Are criminals about to start profiting from their crimes? What will happen in Orange County next?