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California Code of Civil Procedure Section 431.70

Legal Research Home > California Laws > Code of Civil Procedure > California Code of Civil Procedure Section 431.70

Where cross-demands for money have existed between persons
at any point in time when neither demand was barred by the statute of
limitations, and an action is thereafter commenced by one such
person, the other person may assert in the answer the defense of
payment in that the two demands are compensated so far as they equal
each other, notwithstanding that an independent action asserting the
person's claim would at the time of filing the answer be barred by
the statute of limitations. If the cross-demand would otherwise be
barred by the statute of limitations, the relief accorded under this
section shall not exceed the value of the relief granted to the other
party. The defense provided by this section is not available if the
cross-demand is barred for failure to assert it in a prior action
under Section 426.30. Neither person can be deprived of the benefits
of this section by the assignment or death of the other. For the
purposes of this section, a money judgment is a "demand for money"
and, as applied to a money judgment, the demand is barred by the
statute of limitations when enforcement of the judgment is barred
under Chapter 3 (commencing with Section 683.010) of Division 1 of
Title 9.

Last modified: February 13, 2012