Pence v. Glacy
In Pence v. Glacy, 207 Ariz. 426, 87 P.3d 839 (App. 2004), Pence sought a loan from her employer, Glacy, which he reluctantly made on the condition that she secure it with a deed of trust on her property. 207 Ariz. 426,2, 87 P.3d at 839.
Pence signed the deed herself but did not obtain the signature of her husband, as required by our community property statutes, and she later asserted a wrongful lien claim against Glacy on the basis of this defect. Id.3, 6, 8. After a bench trial, the court concluded Glacy was not liable for recording an invalid lien, and we upheld this determination on appeal. Id.1, 8.
Pence stands for the proposition that when the party asserting a claim under 33-420(A) has participated in creating the document in question, acted as though it were valid, and benefited from the defendant believing it to be valid, whether the defendant had "reason to know" the document was invalid presents a factual question.
It is not the case, "as a matter of law, . . . that the presumption of knowledge of the law provides the scienter requirement under the statute." Pence, 207 Ariz. 426,16, 87 P.3d at 842.