Riverisland Cold Storage, Inc. v. Fresno-Madera Prod. Ass'nAnnotate this Case
At issue in this case was the Pendergrass rule, which establishes a limitation on the fraud exception to the parol evidence rule. Plaintiffs restructured their debt with a Credit Association in an agreement. Plaintiffs did not make the required payments, and the Credit Association recorded a notice of default. Eventually, Plaintiffs repaid the loan, and the Association dismissed its foreclosure proceedings. Plaintiffs then filed this action seeking damages for fraud and negligent misrepresentation and including causes of action for rescission and reformation of the restructuring agreement. Relying on the Pendergrass rule, the trial court granted summary judgment to the Credit Association, ruling that the fraud exception did not allow parol evidence of promises at odds with the terms of the written agreement. The court of appeal reversed, holding that the Pendergrass rule did not apply in this case. The Supreme Court affirmed, holding that Bank of America Ass'n v. Pendergrass was ill-considered, and should be overruled.