Donlon v. Maley

110 N.E. 92, 60 Ind. App. 25, 1915 Ind. App. LEXIS 12
CourtIndiana Court of Appeals
DecidedNovember 3, 1915
DocketNo. 8,772
StatusPublished
Cited by2 cases

This text of 110 N.E. 92 (Donlon v. Maley) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donlon v. Maley, 110 N.E. 92, 60 Ind. App. 25, 1915 Ind. App. LEXIS 12 (Ind. Ct. App. 1915).

Opinion

Ibach, P. J.

— This was an action originally brought by certain heirs at law of James Maley, deceased, against appellant, their guardian, to have a trust declared and for an accounting. Two of the [27]*27heirs, Mary and James, who had not joined in the original complaint were subsequently made defendants to the amended complaint. Defendant James filed his cross-complaint in all essential respects similar to the amended complaint, with the additional averment to the effect that a certain quitclaim deed which he had executed to appellant was in fact a mortgage and asking that such deed be treated as a mortgage in the accounting. There were also answers in general denial to the amended complaint, appellant’s cross-complaint, and the amended cross-complaint of James. Appellant filed several paragraphs of answer in which she claims payment in full of all sums due and pleads the statute of limitations, and files a cross-complaint to quiet title in her to the lands alleged in the complaint to be embraced in the trust, claiming to be the- owner thereof. She also filed a fourth paragraph of answer showing a disbursement of all the funds received by her from all sources as such guardian. There were replies to the several answers. At the request of the parties the court made a special finding of facts with conclusions of law thereon, favorable to appellees. There was judgment for each of the heirs, except Mary, for separate amounts found to be due them, and that the appellant having expended more than her proportionate share of the estate on Mary, was entitled to the interest of said ward in the real estate remaining unsold, and that her title to an undivided one-seventh interest therein be quieted in her.

1. The amended complaint is very long, setting forth in detail the appointment of appellant as guardian and her transactions in that capacity covering a period of almost fifteen years. No good purpose would be served by setting forth this pleading or the cross-complaint of James [28]*28in full. It is sufficient to state that the complaint alleges a purchase of the real estate of appellant’s -wards at the administrator’s sale to pay the debts of their father’s estate, for $7,000, by appellant, and that she took the title in her own name, but declared at the time and different times thereafter, that she made such purchase that the property might not be sacrificed at a forced sale and that she might save what she could for .the wards; that she sold two of the pieces of property for $10,200 and retains title to two other tracts; that a demand for an accounting had been made but such demand had not been complied with; that up to and during the -year 1906, appellant furnished appellees money which she represented to them came from the income of the property which she was holding for them, and that she promised to make a settlement when Mary, the youngest child, became of age.

Appellant cites Chorpenning’s Appeal (1858), 32 Pa. St. 315, 72 Am. Dec. 789, to support her contention that the complaint is insufficient. While this case does in a measure lend some aid to her position, we are not inclined to follow it. It-is not a well-considered case and is not in accord with the holdings in this State, nor any other state, as far as our research has gone. We are content to follow the case of Taylor v. Calvert (1894), 138 Ind. 67, 77, 37 N. E. 531, and the cases there cited, wherein the doctrine applicable here is thus announced: “From these authorities we may safely deduce the principle of law that whenever a guardian assumes a position in relation to his ward’s funds, by which he puts his personal interest in conflict with theirs, or acquires any interest or title adverse to that of his wards, he will not, whether he intended any fraud or not, be permitted to retain the advantage, but the same will inure to the benefit of his wards and .he will [29]*29hold what he has acquired in trust for them, subject only to his right to be reimbursed for what he has invested.” The following cases hold to the same effect: Fisher’s Appeal (1859), 34 Pá. St. 29; Potter v. Smith (1871), 36 Ind. 231; Schur’s Appeal (1886), 2 Atl. 336; Talbot v. Provine (1874), 54 Tenn. 502; Hayward v. Ellis (1832), 30 Mass. 272.

2. Appellant is wrong in her contention that the appellees’ claims are barred by the statute of limita,tions, because the fifteen and not the six-year statute applies. In - the case of Taylor v. Calvert, supra, where a similar proposition is discussed, the court uses this language on page 82, “This being an action to enforce a constructive trust growing out of a fiduciary relation, the act complained of is poisonous in its consequences and t'he suit can only be barred by the fifteen-year statute of limitation.”

3. We can not agree with appellant that the final report ' of appellant referred to in the complaint, started the statute of limitations to running against the wards in so far as it operated as a disaffirmance of the trust growing out of the fiduciary relation occupied by appellant, for it is alleged that as late as 1906, she furnished money to her wards and represented to them that it was obtained from the income of the property, and at that time informed them that she would make a final accounting at a later date fixed by her.

1. [30]*304. [29]*29We are satisfied that the averments referred to, together with the>remaining allegations of the amended complaint sufficiently set forth facts showing the existence of a trust and an accounting due thereunder and are sufficient to withstand the several objections urged against it. What we have [30]*30said with reference to the amended complaint applies with equal force to the amended cross-complaint of defendant James, for he alleges therein that he is likewise a cestui que trust under the same trust referred to in the amended complaint, he further avers the same material facts as are found in the amended complaint which show him to be entitled to an accounting. He further discloses the facts connected with the execution by him of a quitclaim deed to appellant and the agreement of the parties made at that time that such deed be dedared in the settlement to be a mortgage. It is well understood that a deed absolute on its face may always be shown to be a mortgage, if it appears by the contract of the parties that it was in fact a mortgage and for this purpose it is not necessary to aver that any fraud or misrepresentation was used.

5. 6. Further separate errors are assigned on the refusal of the court to grant a new trial as of right on the amended complaint, and upon appellant’s cross-complaint. Clearly appellant is not entitled to this for the reason that the cause of action made out by the amended complaint is one to enforce a trust and obtain an accounting. The title to the land is but incidentally involved. It is doubtless true that if the first paragraph of this pleading stood alone, appellant would have been entitled to a new trial as of right under the statute, but the case proceeded to judgment upon other substantial causes of action as well, and in such cases a new triai as of right will not be granted. Henry v. Frazier (1913), 53 Ind. App. 605, 100 N. E. 770, and cases cited.

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Cite This Page — Counsel Stack

Bluebook (online)
110 N.E. 92, 60 Ind. App. 25, 1915 Ind. App. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donlon-v-maley-indctapp-1915.