First Tenn. Bank Nat’l Ass’n v. Newham

Defendant executed a promissory note in favor of the entity that was soon to merge with First Tennessee Bank National Association. The note was secured by a deed of trust for property in California. First Tennessee later filed a complaint against Defendant, alleging that he was in default on the note and seeking damages in the amount of $274,467. The district court granted summary judgment in favor of Defendant, concluding that First Tennessee’s claim was barred by a California statute of limitations. First Tennessee appealed, arguing that the district court erred in finding that the limitations period was not tolled by either a California statute or provision of the Servicemembers Civil Relief Act (SCRA). The Supreme Court affirmed, holding (1) the California tolling statute could not be applied against Defendant, a nonresident of California, without violating the Commerce Clause; and (2) although Defendant was a member of the National Guard, he was neither on “active duty” during his membership nor had he ever been called to active service, and therefore, the SCRA provided no basis to toll the limitations period. View "First Tenn. Bank Nat’l Ass’n v. Newham" on Justia Law