Godoy v. Wells Fargo Bank, N.A.

The Supreme Court affirmed the judgment of the court of appeals finding that Petitioner waived the argument that his contractual waiver of the statute of limitations was void as against public policy, holding that the court of appeals erred in declining to reach Petitioner's argument but that, when the enforceable portions of Petitioner's contractual waiver were applied, limitations did not bar Respondent's suit against Petitioner.Petitioner guaranteed a loan secured by real property. When the borrower defaulted, Respondent Wells Fargo Bank, N.A.'s successor foreclosed on the real property securing the loan. After purchasing property at a foreclosure sale Respondent sued Petitioner to recover the deficiency. Petitioner moved for summary judgment, arguing that Respondent's claim was barred by the two-year statute of limitations for deficiency claims. Respondent moved for partial summary judgment on the grounds that Petitioner waived Tex. Prop. Code 51.003's statute of limitations when he signed the guaranty agreement. The trial court granted summary judgment for Respondent. The court of appeals affirmed, holding that Petitioner waived his public policy argument. The Supreme Court affirmed, holding (1) Petitioner contractually waived the two-year statute of limitations and that a four-year statute of limitations applied to Respondent's claims; and (2) because Respondent sued Petitioner within that four-year period, limitations did not bar the suit. View "Godoy v. Wells Fargo Bank, N.A." on Justia Law