Hodges v. . Council

86 N.C. 181
CourtSupreme Court of North Carolina
DecidedFebruary 5, 1882
StatusPublished
Cited by17 cases

This text of 86 N.C. 181 (Hodges v. . Council) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hodges v. . Council, 86 N.C. 181 (N.C. 1882).

Opinion

Smith, C. J.,

after stating the foregoing facts. Two de-fences are set up against the maintenance of the action, and exception is also taken to the order of reference consequent upon the adverse rulings :

*183 1. The bar of the statute of limitations.

2. Payment and satisfaction, the presumption of which arises under the statute from the lapse of time since the. wards became of full age.

I. There is no statutory limitation of time prescribed for bringing the action to obstruct the plaintiffs’ recovery, and the first defence is untenable.

The guardian has entered into bond for the faithful discharge of his official duties in securing, managing and-delivering over the trust estate to his wards, and thus added his personal covenant to perform to the obligation incurred by the acceptance of the appointment, and growing out of the legal relations subsisting between himself and them; and the law in force and governing the present case fixed no determinate period in which the remedy on the bond must be pursued against him, while it did protect the sureties after a delay of three years. Rev. Stat., ch. 65, § 7. The present suit to enforce this legal obligation against the guardian onty, encounters no such legal impediment.

II. It has been repeatedly declared by this court, that the statutory presumption of payment or satisfaction on all judgments, contracts and agreements arising within ten years after the right of action accrues, (Rev. St., ch. 65, § 13,) has no application to an express trust, open and unperformed, because the relations thus formed are not adversary until they are made so by some act of the trastee, in repudiation of the trust and known to the cestui que trust; and then, as in case of a trust declared by the court, and founded in fraud or the like, the latter must assert his equity within a limited time, in analogy to the rule at law, or relief will be denied. Where this occurs, the statute is put in motion and the presumption it draws from long inaction prevails alike when the proceeding is in equity as when the action is presented at law. Edwards v. University, 1 Dev. & Bat. Eq., 325; State v. McGowen, 2 Ired. Eq., 9; Hamlin v. *184 Mebane, 1 Jones Eq., 18; Davis v. Cotten, 2 Jones Eq., 430, and other cases. See also Godden v. Kimmell, 99 U. S., 201. “It has been invariably maintained,” is the conclusion reached by the author of the work on limitations, after a careful consideration of adjudged cases, “ that if a trustee should deny the right of his cestui que trust, and assume absolute ownership of the property he holds in trust, he abandons his fiduciary character, and the cestui que trust must commence legal proceedings against him within the prescribed time;” and he adds as illustration that “after a ward comes of age the fiduciary relation of the guardian ceases, and they thereafter stand as debtor and creditor,” and the ward’s claim falls under the operation of the re-strictingstatute. Angel Lim., §§ 174, 178. The proposition is fully sustained by the reference.

In Green v. Johnson, 2 Gill and John., (Md.) 389, the court say that “ when the ward is emancipated from the authority of his guardian by reaching the age prescribed by law, his cause of action is complete. The relation which existed between them ceases to be a subsisting trust; an action of account may be immediately instituted in a court of law, and from that time, the act of limitation dates the commencement of the action.”

In Ivy v. Rogers, 1 Dev. Eq., 58, the bill was filed before the passage of the act of 1826, reducing the time prescribed by the common law for raising the presumption of adjustment. Taylor, C. J., dates the beginning of the period to the time when the final administration account was rendered, because, as he explains, “ the account thus stated enabled all parties concerned in interest to ascertain the sum acknowledged to be respectively due them ; to enforce the payment if they were satisfied with the correctness of the accounts, or to reopen them if they were dissatisfied.”

It would seem the like effect should be given to the rendition of the guardian account after the infant attains his *185 majority, and the matter is adverted to and left undecided in the opinion of Pearson, J., in Hamlin v. Mebane, supra, wherein after reiterating the rule which protects express trusts from the consequences of the lapse of time, he adds, we do not feel called upon to say whether the case of a ward who fails to call his guardian to account is within the scope of the rule.”

The instructions of the court proceed upon the idea that the plaintiffs’ claims remain in full force, unimpaired by delay, until by a demand of settlement and a refusal, the intestate’s relations, as trustee, are changed and become antagonistic towards his wards, and thus the statute is put in motion. Accordingly the question of a precedent demand was submitted to the jury and they find there was none.

Upon the trial of the issues the defendants insisted that the claims were presumed to have been satisfied and there was no rebuttiDg evidence. The court did not so direct the jury, but instructed them that if a demand was made more than three years before the commencement of the suit, then as to such of the plaintiffs as made the demand, their right of action would be barred.

While the court properly refused to say there was no rebutting evidence furnished in the testimony of the witness who, seven years previous to the trial, saw the guardian in apparent distress and heard him say “that Holland (husband of his daughter Elizabeth) had threatened to sue him on an old bond, and that he ought not to do so as he was adding to his estate, and they would get it all when he died,” asking the witness at the same time to see Plolland and stop it; yet in our opinion it was an error not to inform them of the legal presumption, and leave the force of the repelling evidence to be weighed against it.

It will be noticed that there is no saving of the rights of married women in the enumeration of the disabilities of others in the act which limits the action against the sure *186 ties to a guardian bond to the space of three years next after the ward’s attaining his majority, an omission to which attention is called and the reason assigned for it given in the case of Hamlin v. Mebane, and that in the act of 1826 shortening the period for the presumption, there is no saving clause and no personal disabilities are placed beyond its reach.

At the same time this is not like a statute limiting the action, an inflexible rule of law, but a rule of evidence to which an artificial effect is added, and open to disproof of the inferred fact.

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Bluebook (online)
86 N.C. 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hodges-v-council-nc-1882.