Paschall v. Hinderer

28 Ohio St. (N.S.) 568
CourtOhio Supreme Court
DecidedDecember 15, 1876
StatusPublished

This text of 28 Ohio St. (N.S.) 568 (Paschall v. Hinderer) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paschall v. Hinderer, 28 Ohio St. (N.S.) 568 (Ohio 1876).

Opinion

Johnson, J.

Upon the issues of fact, the court found in favor of plaintiff, and denied her relief because of the lapse of time and staleness of her equity.

The facts thus found clearly establish an equity in the [577]*577plaintiff to one-fifth of these lands, in 1834, and the question is, whether, by her laches, that equity has become stale.

The breach of trust did not consist in using these funds in making the purchase, for that the defendant had bound himself to do, nor in moving on the land and using it subsequently as a home, for that was manifestly beneficial to the children, but in wrongfully taking the whole title in his own name.

A trust resulted to the children in this title, to the extent the trust funds paid for the land.

And we may add that it is a trust which falls peculiarly within the province of a court of equity, not only because such trusts are exclusively of equity cognizance, but especially for the reason that the chancellor is the special guardian of infants, and watches over the administration of their estates with particular care.

As this cause of action arose prior to the civil code, the limitation of actions therein prescribed has no application.

¥e must inquire, therefore, what were the rules applicable to such cases prior to the code, in a court of equity.

The statute of limitations of 1831 (Swan Stat. 1841, p.. 553) did not in terms apply to suits in equity, but only to-actions at law.

Only so far as courts of equity adopted and followed the limitations fixed at law for analogous actions, can we look, to this act, or apply its provisions in an equitable action.

This subject has been ably considered, and was well settled in numerous cases, prior to the code. Kane v. Bloodgood, 7 Johns. Ch. 90; Hoveden v. Lord Annesly, 2 Sch. & Lefr. 607; Tuttle v. Wilson, 10 Ohio, 24; Horton v. Horner, 14 Ohio, 437; Piatt’s Heirs v. Vattier, 9 Pet. 405; 2 Story Eq.; sec. 1521; Angell on Lim., chap. 35.

In all cases where there was a concurrent jurisdiction of the courts of law and equity for breaches of trust, the rule was well settled that the equitable action was barred, in the same length of time as the action at law.

Where it would, however, be in furtherance of manifest [578]*578injustice, equity would not, by mere analogy, allow the bar to prevail.

As was said in Bond v. Hopkins, 1 Sch. & Lefr. 430-435, by Lord Redesdale: “ The question is not, whether it shall operate in a case provided for by positive enactment of the statute, but whether it shall operate in a case not provided for by the words of the act, and to which the act can apply only so far as it governs decisions in courts of equity — that is, whether it shall prevent a court of equity doing justice according to good conscience, where the equitable title is not barred by the lapse of time, although the legal title is so barred.” 2 Story Eq. Jurisd., sec. 1521, note and cases; Gratz v. Prevost, 6 Wheat. 481.

The leading case in this country is that of Kane v. Bloodgood, 7 Johns. Ch. 90, where all the authorities are ably reviewed. The conclusions there reached were generally ¿accepted as the true solution of the vexed question.

The law, as deduced from an examination of the cases, 7may be thus stated:

That the statute of limitations did not apply in courts -of equity to technical or direct trusts, except in either of ¡■the’following classes of cases :

First. When there was also a remedy at law to which a limitation was fixed. In such case the equitable action to -enforce the trust has a like limit.

In other words, the statute of limitations applies to those ■trusts which permit of remedy for the breach either at law ‘Or in equity; that is, where there is a concurrent jurisdiction.

Second. In cases of trusts, where there is an open denial • or repudiation of the trust brought home to the cestui que drustent, which requires him to act, and the time afterward elapsed amounts at law to a bar.

Third. When circumstances exist which, with the lapse • of time, raises the presumption that the trust has been dis-charged or extinguished. Phillips v. The State, 5 Ohio St. 122.

.Length of time is no bar to a trust clearly established; [579]*579and where fraud is imputed and proved, length of time ought not to exclude l’elief; but as time necessarily obscures all human evidence, and deprives the parties of the means of ascertaining the nature of the original transaction, it operates by way of presumption in favor of innocence and against imputation of fraud.

And it has been held that the lapse of forty years, and the death of all the original parties, is sufficient to raise the presumption that the trust is extinguished. Gratz v. Prevost, 6 Wheat. 481.

To the first class belong all cases where there was a concurrent jurisdiction both at law and in equity.

In such cases equity by analogy followed the law. Kane v. Bloodgood, 7 Johns. Ch. 90; Angell on Lim. 35, and cases.

In the second class the rule is thus stated in Williams v. First Presbyterian Church, 1 Ohio St. 478, where it is said: “Although it is true, as a general rule, that, as between trustee and cestui que trust, lapse of time is no bar, yet it is equally true that where the former, with the knowledge of the latter, disclaims the trust, either expressly or by acts that necessarily imply a disclaimer, and an unbroken possession follows in the trustee, or those claiming under him, for a period equal to that prescribed in the act of limitation to constitute a bar, such lapse of time, under such circumstances, may be relied upon as a defense.”

To neither of these classes does the case at bar belong. A court of equity has exclusive cognizance of such action, and there is no pretense that there has been such a disclaimer.

This is not a trust when its breach authorizes an action at law. After the purchase and possession, both of which acts were consistent with the trust the defendant had undertaken, he committed such a breach by taking the conveyance in his own name. The remedy for this was exclusively in equity.

Neither was there ever any disavowal or repudiation of [580]*580the trust. His answer admits a trust in the money, and the court finds that it existed in the land.

He nowhere claims that his possession was openly and avowedly in repudiation of his trust relation to the property. Until he does so, the occupancy will be presumed to. be in fulfillment of the trust, and not in derogation of it. Such occupancy was consistent with that relation, and until disavowed by him, the statute would not begin to run.

In case of such disavowal, and future possession for twenty-one years under a claim of right, the equity would, as a general rule, perhaps be barred.

During the minority of these children the land was their home as well as his, used for their shelter and support.

His holding was that of a co-tenant, and head of the family for the common benefit of all its members.

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Related

Prevost v. Gratz
19 U.S. 481 (Supreme Court, 1821)
Piatt v. Vattier
34 U.S. 405 (Supreme Court, 1835)
Decouche v. Savetier
3 Johns. Ch. 190 (New York Court of Chancery, 1817)
Higinbotham v. Burnet
5 Johns. Ch. 184 (New York Court of Chancery, 1821)
Kane v. Bloodgood
7 Johns. Ch. 90 (New York Court of Chancery, 1823)
Philips v. State ex rel. Harter
5 Ohio St. 122 (Ohio Supreme Court, 1855)
Bowman v. Wathen
3 F. Cas. 1076 (D. Indiana, 1841)

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Bluebook (online)
28 Ohio St. (N.S.) 568, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paschall-v-hinderer-ohio-1876.