Bustad v. Bustad

116 N.W.2d 552, 263 Minn. 238, 1962 Minn. LEXIS 776
CourtSupreme Court of Minnesota
DecidedJuly 13, 1962
Docket38,453
StatusPublished
Cited by27 cases

This text of 116 N.W.2d 552 (Bustad v. Bustad) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bustad v. Bustad, 116 N.W.2d 552, 263 Minn. 238, 1962 Minn. LEXIS 776 (Mich. 1962).

Opinion

Otis, Justice.

The plaintiff instituted this action in March 1960 to recover damages arising out of various transactions with defendant during the period from 1930 to 1946. A motion for summary judgment by defendant based on the defense of the statute of limitations was granted, and plaintiff has appealed from the judgment.

Plaintiff’s complaint asserts the following claims:

(1) $10,000 for gravel removed by defendant from plaintiff’s property between 1930 and 1938.

*239 (2) $1,000 for timber and wood removed by defendant from property owned by plaintiff between 1930 and 1933.

(3) $1,000 for black dirt removed by defendant from property owned by plaintiff in 1935.

(4) $3,500 for services rendered by plaintiff on behalf of defendant between 1939 and 1946.

(5) $2,000 for real estate belonging to plaintiff wrongfully conveyed by defendant in 1940.

The complaint alleges that each item of damages was initially payable by defendant to plaintiff “at some indefinite time in the future.” It further alleges that periodic payments on these claims were made by defendant from 1936 until August 15, 1951. It is plaintiff’s contention that on or about February 15, 1956, he for the first time discovered that assurances made by defendant that he would pay plaintiff what he owed constituted a fraud and deceit and violation of a fiduciary relationship which existed between the parties.

The issues before the trial court were framed by the complaint, depositions of the two parties, and affidavits in opposition to the motion, presented by plaintiff. Construing these instruments in the light most favorable to plaintiff, the following appear to be the facts: The plaintiff and defendant are brothers in their middle 60’s, the defendant being somewhat the older of the two and unquestionably the more successful and sagacious in business. For a period of nearly 20 years, beginning before 1930 and ending in 1946, the brothers were engaged in various enterprises as partners and as employer and employee.

In view of our decision that the plaintiff’s claims are barred by the statute of limitations, it is unnecessary to recite the details of each transaction out of which this action arose. Whatever may be the merits of the various claims, the disposition of all of them is governed by the same course of events which occurred between 1951 and 1956. While defendant denies that the periodic payments he made to plaintiff were to be applied on any existing indebtedness, it may be assumed, without so deciding, that on June 26, 1951, a payment of $400 by defendant revived whatever outstanding obligation he may have then *240 owed. Minn. St. 541.17. Plaintiff testified by deposition that none of the claims was based on a written agreement with his brother. While he frequently approached defendant on the subject of recovering what he claimed he had coming, he never received any satisfaction. He testified that when he “jumped” defendant, “it was brushed off some way or other.” Although it is his claim that there was an agreement to pay him an additional $500 a year from 1939 to 1946, none of this amount was ever forthcoming. Consequently plaintiff terminated his employment with defendant in 1946, and acknowledged that their relationship thereafter was definitely strained. While plaintiff claims that defendant consistently promised to pay him whatever defendant owed him, there is no testimony that defendant ever acknowledged any debt in fact. In February 1956 the matter came to a head when, as plaintiff expressed it, “I figured he [defendant] was pulling my leg.” At that time a meeting between the parties and various intermediaries was arranged, and according to plaintiff’s version, “It broke up when he agreed to sign a piece of paper that it wasn’t outlawed, then it broke up, went home, got a paper for him to sign, and he wouldn’t sign it.”

Assuming that defendant in February 1956 consented to execute a written waiver of the statute of limitations, that he assured plaintiff it would not be necessary to bring a lawsuit, that he agreed to pay plaintiff anything he owed him, and that plaintiff relied on these assurances, it nevertheless appears from the plaintiff’s own affidavit that shortly thereafter a written agreement to waive the statute of limitations was presented to defendant and that he refused to sign it. Counsel for plaintiff has acknowledged that defendant’s refusal to sign the waiver came to plaintiff’s attention at a time when plaintiff’s claims were not barred by the 6-year statute of limitations. § 541.05. In our view of the matter, this constituted a renunciation of any prior acknowledgment he may have made regarding an outstanding obligation to plaintiff, and it was incumbent upon the plaintiff at that point to commence an action within 6 years from the date of the last payment in June 1951. Clearly there was ample time in which to proceed, and plaintiff’s failure to take appropriate action with full knowledge of defendant’s attitude in the matter forecloses recovery.

*241 In essence, plaintiff assigns as error the granting of the motion for summary judgment in the face of issues of fact with respect to the statute of limitations, unresolved, as plaintiff claims, because of defendant’s refusal to answer various questions in his deposition. In addition, plaintiff assigns as error the court’s recognition of the statute of limitations under circumstances where the issues of fraud, promissory estoppel, and whether or not the obligations were due at some indefinite time in the future were all matters which required litigation.

With respect to the allegations in the complaint that all of the claims were due at some indefinite time in the future, it is enough to say that neither plaintiff’s deposition nor affidavit supports in any manner this position. The persistence with which plaintiff pressed defendant over the course of 15 or 20 years flies in the face of his contention that the debts were not due until some indefinite time within 6 years of March 1960 when this action was commenced. While it is not the function of either the trial court or of this court on a motion for summary judgment to determine the facts, it is our duty to decide from all of the pleadings, affidavits, depositions, and other parts of the record whether there is a genuine fact issue for the court to submit. We find nothing in the record to sustain plaintiff’s contention in this regard.

Plaintiff relies for recovery on the principles applied in Fallon v. Fallon, 110 Minn. 213, 124 N. W. 994, 32 L. R. A. (N. S.) 486. That case involved a claim by a sister against a brother with whom she had deposited money for investment over the period of 14 years. Until some 37 years after the relationship began, she made no claim for an accounting. In rejecting the defense of the statute of limitations, this court held that under the circumstances the plaintiff’s investments were to be held for an indefinite time in the future and the statute of limitations did not begin to run until there was an actual demand for payment. The same rule was applied in Andrews v. Andrews, 170 Minn. 175, 212 N. W. 408, 213 N. W. 899, 51 A. L. R. 542; and Bannitz v. Hardware Mutual Cas. Co. 219 Minn. 235, 17 N. W. (2d) 372, 159 A. L. R. 1017.

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Cite This Page — Counsel Stack

Bluebook (online)
116 N.W.2d 552, 263 Minn. 238, 1962 Minn. LEXIS 776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bustad-v-bustad-minn-1962.