Bankers Mortgage Co. v. Leisure

1935 OK 342, 42 P.2d 863, 172 Okla. 170, 1935 Okla. LEXIS 404
CourtSupreme Court of Oklahoma
DecidedApril 2, 1935
DocketNo. 24506.
StatusPublished
Cited by8 cases

This text of 1935 OK 342 (Bankers Mortgage Co. v. Leisure) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bankers Mortgage Co. v. Leisure, 1935 OK 342, 42 P.2d 863, 172 Okla. 170, 1935 Okla. LEXIS 404 (Okla. 1935).

Opinion

PER CURIAM.

The parties will be referred to as they appeared in the trial court.

On April 23, 1930, the plaintiffs filed their petition asking for the rescission of a contract entered into between plaintiffs and defendant and for judgment against the defendant for $1,’200 for money paid on the contract. The allegations of plaintiffs’ petition were that on- June 28, 1928, one Frans Jansen, agent of the defendant, called upon the plaintiff John B. Leisure and offered to sell him a first mortgage bond of the defendant for a certain price. Plaintiffs allege that said agent represented to the plaintiffs that they could recover any amount of money paid on said bond with interest at the rate of per cent., by giving defendant 30 days’ notice of their intentions to withdraw said money. Plaintiffs further al-Teged that they agreed to buy said bond upon tlie representations of defendant’s agent, said agent not having a copy of said bond in liis possession at that time. Plaintiffs paid defendant the sum of $1.200 as a down payment on said bond and about one week later received the bond. Plaintiffs put the bond away without examining it closely, and never examined it until August, 1929, when they made demand on defendant for the return of their money. Defendant refused to return the money, and on April 23, 1930, plaintiffs filed their petition in the district court of Oklahoma county, asking for rescission of the contract and judgment against the defendant for $1,200, on the ground that defendant had defrauded them. Summons was issued on the ’23rd day of April, 19301. and served on one B. C. Hallett on May 19, 1930. By a special appearance defendant moved to quash the service, which motion was sustained. Thereafter, on the 10th day of September, 1930’, an alias summons was issued to the defendant,' which was on September 13, 1930, served upon Una Lee Roberts, service agent of the defendant. Thereafter, on November 10, 1930, defendant filed its answer in said cause, denying4 each and all the allegations of "(plaintiffs’ petition and pleading specially the two-year statute of limitations.

Without commenting on the sufficiency of the allegations of fraud, or the sufficiency of the evidence to establish fraud, we will consider only the question of limitations urged as a defense in the trial court and relied upon here for a reversal of the judgment.

A statute of limitation which bars relief where fraud is the basis of the action should be enforced with great carej We would like to hold that any individual who perpetrates a fraud could not avail himself of the statute of limitation as a ground of defense, but our Legislature has seen fit to enact a statute which prevents relief on the ground of fraud where the action is not commenced within two years of the dis *172 covery oí such fraud. (Oklahoma Statutes 1931, sec. 101). There is no question as to the constitutionality of this statute; consequently, we are bound to follow the legislative enactment, and prior decisions of this court construing- the same.

The fraudulent acts of which it is claimed defendant was guilty consisted of a representation alleged to have been made by defendant’s agent, to the effect that plaintiffs could recover any money they invested In defendant’s bond with 5yí per cent, interest by giving defendant 30 days’ notice. This representation was .made on July 28, 1928. Plaintiffs paid defendant’s agent $1,200, and about a week later received a bond. The bond did not contain provisions which defendant’s agent had represented it would contain. Plaintiffs put the bond away without discovering it did not contain such provisions. It is not alleged the language of the bond was vague or difficult to understand. The language of the bond clearly sets out its provisions.

In order to determine whether plaintiffs’ action is barred by the statute of limitations, we first .must determine when the cause of action accrued, and whether plaintiffs commenced their action within two years of the accrual thereof. According to the undisputed evidence, plaintiffs received their bond about one week after June 28, 1928. Plaintiffs contend they were entitled to a reasonable time after receipt of the bond in which to read it and d5scover the fraud, if any existed. With this contention we cannot agree, for our court has held that where the person claiming to have been defrauded has the means in his hands of discovering the fraud, and the defrauding party has not covered up the fraud, the statute of limitations begins to run on the date means of discovering said fraud comes into his hands. Jones v. Woodward, 50 Okla. 704, 151 P. 586; Ostran v. Bond et al., 69 Okla. 310, 172 P. 447; Yoder v. Weston, 122 Okla. 51, 250 P. 522.

In the case of Jones v. Woodward, supra, the action was against an executor for recovery of money paid to her intestate for certain lots in the town of Cache, Okla. Plaintiff set up that the intestate agreed to give her a warranty deed to such lots, and plaintiff, toeing ignorant of the various kinds of instruments, accepted a quitclaim deed, thinking she had a warranty deed. The quitclaim deed was delivered on the 28th day of October, 1902, and plaintiff did not discover she had a quitclaim deed until 1909, whereupon she tendered her quitclaim deed and demanded the return of her money. Our court held the statute of limitations had .run. The third syllabus of the case reads:

“The statute of limitations was set in motion when the deed was delivered to and read and accepted by the grantee.”

In the case of Ostran v. Bond, supra, the first syllabus sets up the facts and law of the case:

“O. and B. entered into an agreement for the exchange of real estate, and in furtherance thereof IB. executed to O. a deed dated November 11, 1912, which deed contained a general warranty, except: ‘As _ to a $2,000 mortgage due Jan. 1, 1915, which said second party (O.) agreed to assume and pay at 7 por cent.’ On January 11, 1915, O. instituted suit against B. to cancel and set aside the note and mortgage which O. had assumed in the deed to pay, on the ground of fraud. Pleld that, there being-no allegation in the petition of the illiteracy of O., he must be held to have had notice of the alleged fraud at the time he accepted the deed, and more than two years having elapsed from the time of accepting said deed to the bringing of said action, said action is barred by the statute of limitations of two years, and the court did not err in sustaining a demurrer to the petition.”

Prom the above cases we conclude that where the defrauded party had in his hands means of discovering fraud, and the defrauding party has in no way covered up his fraud, the statute of limitations begins to run when the means of discovery comes into the hands of the defrauded party.

Prom the reason and rule of these cases, we conclude plaintiffs’ action accrued when they received the bond, on or about July 5, 1928.

Having determined when the statute began to run against the plaintiffs, we must now determine if they were timely in-bringing their action. The plaintiffs filed their petition April 23, 1930. Faulty summons was issued on the same date and served April 28, 1930. Said service was quashed and proper service was not had until September 13, 1930. Our question is whether the action was commenced when the petition was filed or the date of summons served on defendant.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hill v. Blevins
2005 OK 11 (Supreme Court of Oklahoma, 2005)
Cleveland v. Dyn-A-Mite Pest Control, Inc.
2002 OK CIV APP 95 (Court of Civil Appeals of Oklahoma, 2002)
Mary Ruth Moore v. William Bell Dunham, (Two Cases)
240 F.2d 198 (Tenth Circuit, 1957)
Gulf Coast Western Oil Co. v. Trapp
174 F.2d 339 (Tenth Circuit, 1949)
Smith v. Kimsey
1943 OK 121 (Supreme Court of Oklahoma, 1943)
Boyd v. Prudential Ins. Co.
1941 OK 203 (Supreme Court of Oklahoma, 1941)
Holloway Material & Supply Co. v. Hammond
1940 OK 153 (Supreme Court of Oklahoma, 1940)

Cite This Page — Counsel Stack

Bluebook (online)
1935 OK 342, 42 P.2d 863, 172 Okla. 170, 1935 Okla. LEXIS 404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bankers-mortgage-co-v-leisure-okla-1935.