Latham v. Latham

184 N.C. 55
Supreme Court of North Carolina·Decided September 20, 1922·Published·Cited by 19 cases

Opinion

HoKE, J.

It is a practice approved in our decisions tbat where a cause is called for trial and tbe statute of limitations having been properly pleaded it appears from tbe face of tbe complaint and tbe uncontro-verted facts tbat tbe -plaintiff’s cause of action is barred by statutory limitation of time, a judgment of nonsuit or dismissing tbe action on tbat ground will not be disturbed, though there may be valid exceptions for error in other phases of tbe trial. Rankin v. Oates, 183 N. C., 518; Earnhart v. Comrs., 157 N. C., 234-236; Oldham v. Rieger, 145 N. C., 254; Cherry v. Canal Co., 140 N. C., 422.

And especially is such course permissible where, as in' this case, tbe parties have requested tbe court to dispose of tbe case on tbe question suggested.

[62]*62This, then, being in accord with our procedure, tbe court clearly bad tbe right to determine tbe controversy on perusal of tbe pleadings, and in our opinion bas correctly ruled that in any aspect of tbe matter tbe plaintiffs’ cause is barred by tbe statute of limitations applicable.

As we understand tbe record, tbe gravamen of tbis demand is for a breach of duty on tbe part of S. ~W. Latham, deceased, as executor of bis father, E. P. Latham, and for breaches of trust under bis said will, in that without legal cause be bas procured a sale by court decree of a large landed, estate of F. P. Latham, amounting to six thousand acres or more, to pay debts not exceeding $5,000, and bas by tbe intervention of nominal parties, bought in said estate and taken title thereto, or tbe greater part of it, for $1,959, and a mere nominal consideration, and after occupying said property under said deeds since said sale and conveyances, be bas sold and conveyed tbe same to innocent purchasers for value, who now have and bold tbe title unimpeachable by action or otherwise on plaintiffs’ part, and tbe relief demanded being against S. "W. Latham and bis successors, in interest for $92,000 damages incident to tbe fraud and breach of trust alleged against him. And tbis when it appears from tbe allegations of tbe complaint that tbe sale complained of was by regular proceedings in court, instituted in 1870, to which all of plaintiffs or their ancestors in title were duly made parties of record, when tbe deeds complained of were formally executed in 1871, and have been of record since 1888, and tbe property thereby conveyed bas been in tbe open, exclusive, continuous, and adverse possession of tbe purchaser and others claiming under him since said date, and certainly since tbe death of tbe life tenants under tbe will of E. P. Latham, to wit, Julia J. Latham, widow of E. P., who died in 1888, and A. C. Latham, a son, who died,in 1886. Recurring more particularly to tbe facts stated in tbe complaint, and tbe dates given by plaintiff in tbe amended complaint, they seem to be in full support of tbe statement from tbe carefully considered brief of defendant’s counsel:

“This suit was commenced by summons dated 10 October, 1916, at which time tbe following number of years bad elapsed since tbe several dates mentioned in tbe complaint, to wit:
“Fifty years since tbe death of Frederick P. Latham, tbe testator; and tbe qualification of Samuel W. Latham as executor.
"Forty-six years since special proceedings was instituted by tbe executor for sale for assets.
“Forty-five years since tbe deeds were executed conveying tbe lands, and twenty-eight years since tbe deeds were registered.
“Forty-one years since Samuel W. Latham, executor, filed bis final account and made settlement of tbe estate.
[63]*63"Thirty years since Alex. C. Latham, life tenant under item 3 of the will, died; at that time his son, Alex. C. Latham, was 25 years old, and is one of the plaintiffs now living; and Mrs. G-asldll, the devisor’s daughter, and mother of the plaintiffs Gaskill, was 34 years old, and she lived until May, 1914.
"Twenty-six years since Julia J. Latham, widow .of the testator, and life tenant under item 8 of the will, died. At that time Josephine Potts, the only remainderman under said item, represented in this suit, was 55 years old.
"Twenty-one years since the death of said Josephine Potts, and at the time of her death her youngest child was 22 years old.
"Seventeen years since coverture was a bar to the plea of adverse possession.
“When the suit was started the youngest plaintiff was 43 years old and the oldest plaintiff was 55 years old.”

Assuming that the allegations of the complaint' are broad enough to constitute and include a direct demand against S. "W". Latham for malfeasance as executor, our decisions hold that the relationship between such and the beneficiaries of the estate becomes adversary in two years from his qualification, and such a claim will be barred, at most, within ten years from that date. Brown v. Wilson, 174 N. C., 668; Edwards v. Lemmons, 136 N. C., 329.

Considering the complaint as a demand for an accounting by a trustee under the terms of the will, the devise to S. W. Latham in trust to collect and apply the rents and hires and interest, etc., of said estate to the support of A. C. Latham and his family during the life of A. 0. Latham, and then to convey to his child or children, etc. This estate, constituting an active trust during the life of A. 0. Latham, would become passive at his death, which occurred in 1886, and from that date the parties would be in an adverse relation to each other, putting the statute in motion and the claim on that account would be barred, at the furthest, in ten years from the death of A. C. Latham. Rouse v. Rouse, 176 N. C., 171. Assuredly so when there had been an open and avowed repudiation of any and all relationship as trustee. Rouse v. Rouse, supra; University v. Banh, 96 N. C., 280.

Plaintiffs, however, contend that this is an action based upon the fraud of defendants, or their predecessor, S. W. Latham, whereby they have been wrongfully deprived of their property, and that the same comes under C. S., 441, subsee. 9, by which their claim is only barred within three years from the discovery of the facts constituting the fraud.

Conceding that plaintiffs’ statement brings his cause within purview of this section, and undoubtedly this is the intent and purpose of the complaint, we have held in numerous decisions that under this clause an [64]*64action is barred witbin three years from the discovery of the facts or from the time when they should have been discovered in the exercise of proper diligence or reasonable business prudence. In re Johnson, 182 N. C.; 525-527; Sanderlin v. Gross, 172 N. C., 234-242; Ewbank v. Lyman, 170 N. C., 505-508; Jeferson v. Lumber Co., 165 N. C., 49; Sinclair v. Teal, 156 N. C., 458; Peacock v. Barnes, 142 N. C., 215.

On this question, in Johnson's case, supra, quoting with approval from Peacock v. Barnes, supra, the Court said: “We do not hold, as. appellant contends, that the statute begins to run from the actual discovery of the fraud, absolutely and regardless of any negligence or laches of the party aggrieved.

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Latham v. Latham, 184 N.C. 55 (N.C. 1922).

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