Scheas v. Robertson

In Scheas v. Robertson (1951) 38 Cal.2d 119, plaintiff sought to enforce a lien on a parcel of real property based on an unforeclosed street improvement bond, issued in 1929, that had been in default since July 1933. In November 1948, plaintiff filed suit against defendants, who purchased the lot in January 1947. The trial court entered judgment for defendants because: (1) under the 1945 amendment to section 2911 of the Civil Code (section 2911), "plaintiff was required to enforce the lien before four years had elapsed after the due date of the last installment of the bond or by January 1, 1947, whichever was later, and; (2) that defendants were bona fide purchasers for value of the property after these periods had elapsed, and, as such, were entitled to the conclusive presumption under the statute that plaintiff's lien had been extinguished." (Scheas, supra, 38 Cal.2d at pp. 122-123.) On appeal to the Supreme Court, plaintiff claimed the evidence did not support the trial court's finding defendants were bona fide purchasers. Plaintiff asserted the title report gave notice of the recorded status of his unpaid bond, therefore defendants could not be bona fide purchasers because they took with record notice. (Scheas, supra, 38 Cal.2d at p. 128.) The Supreme Court, however, affirmed defendants' bona fide purchaser status. The court observed that section 2911 specifically provided a conclusive presumption in favor of a bona fide purchaser for value that all liens were extinguished after a certain period of time had elapsed. (Scheas, supra, 38 Cal.2d at pp. 128-129.) The court reasoned that the ordinary rule that "one may not be classified as a 'bona fide purchaser for value'" if he or she has record notice of an encumbrance was specifically modified by operation of the 1945 amendment to section 2911 in order to further the legislative purpose of remedying the "serious economic condition in land titles throughout the state." (Scheas, supra, 38 Cal.2d at p. 129.)