Etelaei v. First General Bank (June 18, 2019, B287186) 2019 WL 2511405

The issue on appeal was whether evidence of the homeowner’s execution of a written agreement with a third party ratified the third party’s previously unauthorized execution of a trust deed on her home.  Since a trust deed must be in writing, under the “equal dignities rule” the homeowner’s supposed ratification of the third party’s execution of the trust deed also had to be in writing.  The appellate court agreed with GMSR’s argument that, contrary to the trial court’s judgment, the evidence presented a triable issue of fact whether the agreement, which did not mention a home loan, satisfied the written ratification requirement.  Summary judgment for the lender was reversed and the case was remanded to the trial court for a trial on the merits of the homeowner’s action to set aside the trust deed.