Sutton v. Sutton

118 P.3d 700, 34 Kan. App. 2d 357, 2005 Kan. App. LEXIS 861
CourtCourt of Appeals of Kansas
DecidedSeptember 2, 2005
Docket93,473
StatusPublished
Cited by3 cases

This text of 118 P.3d 700 (Sutton v. Sutton) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sutton v. Sutton, 118 P.3d 700, 34 Kan. App. 2d 357, 2005 Kan. App. LEXIS 861 (kanctapp 2005).

Opinion

Caplinger, J.:

Shirley Sutton appeals the district court’s grant of summary judgment in favor of die defendants in this action to recover real property. Shirley contends the district court incorrectly applied the 2-year statute of hmitations for fraud, K.S.A. 2004 Supp. 60-513(a)(3), instead of the 15-year limitation period *358 for actions for recovery of real property, K.S.A. 60-507. We hold that although Shirley did not specifically plead for relief on the basis of fraud, her action is based on a conveyance of title perpetrated by alleged fraud. Thus, the trial court correctly held that Shirley must first nullify the alleged fraudulent conveyance within 2 years from the time the fraud was, or should have been, discovered pursuant to K.S.A. 2004 Supp. 60-513(a)(3). We further conclude the district court properly determined as a matter of law that Shirley failed to bring her action within 2 years of the time she knew or should have known of the alleged fraud, and summary judgment was thus appropriate.

Background

In 1979, William and Shirley Sutton lived on 160 acres of real estate located in Douglas County. The property was owned by William’s mother, Loretta Sutton. On December 19, 1979, Loretta contracted to sell the property to William and Shirley for $90,000, less a $25,500 down payment. The contract required yearly payments by William and Shirley to Loretta until the balance of the contract was paid in full. On that same date, Loretta deeded the real estate to William and Shirley.

William and Shirley made none of the required payments on the contract but continued to live on the property. In 1994, Loretta’s attorney drafted a deed to transfer the real estate back to Loretta from William and Shirley in exchange for cancellation of the debt. The deed was not executed, however, until Shirley was admitted to Lawrence Memorial Hospital for a serious medical condition in May 1995. William and Shirley did not have health insurance to cover the looming medical expenses and were concerned that their creditors could take the real property from them if they defaulted on their medical debts.

To solve this perceived issue, William asked Shirley to sign the deed that Loretta’s attorney had prepared in 1994, transferring the real property back to Loretta. Shirley alleges William claimed the transfer would only be temporary. In any event, Shirley agreed to sign the deed and the real property was deeded back to Loretta on May 8, 1995.

*359 Loretta deeded the real property to the Loretta Sutton Trust in July 1995. Five years later, in October 2000, William became sole beneficiary of the trust.

Sometime in 2003, Loretta died, having never deeded the real property back to William and Shirley. In late 2003, William filed for divorce from Shirley. On January 23, 2004, Shirley filed this separate action against William and William’s sister, Jane Buttenhoff, the trustee of the Loretta Sutton trust, in an attempt to bring the real property into the marital estate. Shirley alleged the deed was invalid because she lacked mental capacity to execute the deed at the time it was signed, and also that her signature on the deed was procured by undue influence and misrepresentations.

The parties were granted a divorce, and in the memorandum decision in the divorce action, the district court ruled that it retained jurisdiction over the real estate for possible later distribution, after the resolution of the action for recovery of real property.

Shirley’s separate action for recovery of the real property proceeded through discovery. William Sutton and the trustee eventually filed a motion for summary judgment in that action, alleging inter alia, that the action was barred by the expiration of the statute of hmitations. The district court granted summaiy judgment in favor of William and the trustee, and Shirley appeals.

Summary judgment is appropriate when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. On appeal, a reviewing court applies the same rules and where the reviewing court finds reasonable minds could differ as to the conclusions drawn from the evidence, summary judgment must be denied. Bracken v. Dixon Industries, Inc., 272 Kan. 1272, 1274-75, 38 P.3d 679 (2002).

Statute of limitations

The district court applied the 2-year statute of hmitations for actions sounding in fraud pursuant to K.S.A. 2004 Supp. 60-513(a)(3). On appeal, Shirley contends that because her action is one for recovery of real property, the district court should have apphed the 15-year statute of hmitations provided for in K.S.A. OO-SO?. However, “[t]he mere fact that an action pertains to real estate *360 does not necessarily constitute it an action for the recovery of real estate.” Herthel v. Barth, 148 Kan. 308, 81 P.2d 19 (1938).

We agree with the defendants that the facts of this case closely resemble those before the court in Foy v. Greenwade, 111 Kan. 111, 206 Pac. 332 (1922). There, the plaintiff alleged that through false representations, the defendant fraudulently induced her to sign a quitclaim deed for her interest in certain real property. Like the plaintiff here, the plaintiff in Foy argued the 2-year statute of limitations did not apply because the action was essentially one for the recovery of real estate. The court disagreed and held:

“[Pjlaintiff must get rid of his deed of 1912 before he can successfully maintain his claim to the real estate . . . [but] the relief must be invoked according to the statute. The statute says two years is the limitation for an action for relief on the ground of fraud. Plaintiff has waited seven years — on the theory perhaps that he has fifteen years. He would have fifteen years if he had given no title; but having given title, he does not have fifteen years to get rid of his conveyance; he only has such time as the statute allows — two years. Once rid of the alleged fraudulent conveyance he might wait as long as he chose to recover his interest in the property, not exceeding fifteen years.” 111 Kan. at 118.

Thus, to maintain an action for recovery of real property based on a conveyance of title perpetrated through fraud, a plaintiff must first nullify the fraudulent conveyance before attempting to recover the real property. The suit to nullify the fraudulent conveyance, however, must be brought within the appropriate time frame for such actions, i.e., 2 years from the time the fraud was or should have been discovered, as set forth in K.S.A.

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Cite This Page — Counsel Stack

Bluebook (online)
118 P.3d 700, 34 Kan. App. 2d 357, 2005 Kan. App. LEXIS 861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sutton-v-sutton-kanctapp-2005.