Guan v. Hu

Although Civil Code 1692(b) allows a court in a rescission action to grant “any party any other relief to which he may be entitled under the circumstances” if it finds that the parties’ contract has not been rescinded, the quoted language does not allow a trial court to readjust the parties’ rights or grant relief if the plaintiff does not prevail on any claim.  Civil Code 1692(b) allows a court in a rescission action to grant “any party any other relief to which he may be entitled under the circumstances” if it finds that the parties’ contract has not been rescinded.  This decision holds that the quoted language does not allow a trial court to readjust the parties’ rights or grant relief if the plaintiff does not prevail on any claim.  Here, the trial court had earlier sustained without leave to amend a demurrer to plaintiff’s breach of contract claim.  The amended pleading on which plaintiff proceeded to trial stated only a claim for rescission of the parties’ contract.  When the trial court denied that claim, it lacked the power to grant the plaintiff what amounted to unjust enrichment or breach of contract damages based on her failure to perform the contract as promised.

California Court of Appeal, Second District, Division One (Johnson, J.); June 2, 2017; 2017 WL 2391812

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