Pacific National Bank v. Corona National Bank

Holding

The court held that the Corona National Bank, as the transferee of funds obtained by fraud, could not assert the defense of being a bona fide purchaser for value because it did not part with any valuable consideration or change its position in reliance on the transfer, and that the statute of limitations for an action for money had and received, where the underlying claim sounds in fraud, is governed by the three-year period for fraud claims rather than the two-year period for implied contracts.