Vorholt v. One Valley Bank

498 S.E.2d 241, 201 W. Va. 480
CourtWest Virginia Supreme Court
DecidedMay 8, 1998
Docket23589
StatusPublished
Cited by11 cases

This text of 498 S.E.2d 241 (Vorholt v. One Valley Bank) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vorholt v. One Valley Bank, 498 S.E.2d 241, 201 W. Va. 480 (W. Va. 1998).

Opinions

MAYNARD, Justice:

The appellant, Jerry A. Vorholt, appeals the May 17, 1995 order of the Circuit Court of Kanawha County which granted summary judgment for the appellee, One Valley Bank, finding that the appellant’s suit against the appellee for failing to include him in the distribution of his adoptive father’s estate is barred by the statute of limitations. For reasons set forth below, we affirm the circuit court’s order.

[482]*482I

On April 20, 1955, Ansel F. Vorholt made his Last Will and Testament. This will provided that Mr. Vorholt’s estate was to be transferred in trust to the appellee, One Valley Bank, National Association, then known as Kanawha Valley Bank. Shortly after making the will, Mr. Vorholt died on May 17, 1955. The term of the trust was “to be renewed by the interval of time elapsing between the date [of the testator’s death] and twenty-five years thereafter.” The trust, therefore, terminated on May 17,1980. During the trust’s existence, one-third of the trust income was to be distributed to Ansel F. Vorholt’s nephew, Leo Vorholt, the adoptive father of the appellant, Jerry A. Vo-rholt.1 If Leo Vorholt died before the trust’s termination, his income interest was to pass per stirpes to his “children and descendants.” Upon the trust’s termination, one-third of the estate was to be distributed to Leo Vorholt, or, if he was deceased, to his descendants per stirpes.

After Ansel F. Vorholt’s death, the appel-lee, as executor, administered the estate, principally consisting of the establishment of the trust. Two years later, in 1957, Leo Vorholt adopted the appellant. From 1955 until 1970, the appellee made distributions of one-third of the trust’s income to Leo Vo-rholt in accordance with the terms of the trust.

In 1970, Leo Vorholt died.2 As previously indicated, his income and remainder interest in the trust established by Ansel F. Vorholt was to pass to his “children and descendants” per stirpes in accordance with Ansel F. Vo-rholt’s will. When Leo Vorholt died, he had two natural children in addition to the appellant. The appellee was immediately faced with the issue of whether the appellant, an adopted child, would benefit as a “descendant” under the testamentary trust. In deciding this issue, the appellee relied on a legal opinion prepared by counsel concluding that the appellant, as an adopted child, was not entitled to share as a beneficiary in the trust.3 As a result, the appellant did not receive any income distributions made to the beneficiaries under the trust.

The trust terminated on May 17, 1980, twenty-five years after the testator’s death. The appellee, as trustee, made distributions of the real property corpus of the trust to the beneficiaries of the remainder interest as it had determined them in 1970, again excluding the appellant. On August 25, 1980, the appellee recorded thé deed granting legal title to the real property corpus of the trust to the beneficiaries, and completing its administration of the trust. The surviving beneficiaries entered into an Agency Agreement with the appellee on May 4,1989, authorizing the appellee to manage the real estate previously distributed from the trust.

In 1989, a lawyer questioned the title to the real property in light of the fact that the appellant had been excluded. A representative of the appellee contacted the appellant about this issue in May 1989. According to [483]*483the appellant, this was the first time that he became aware of the trust in question or of his possible interest in the trust.

The appellant filed suit against the appel-lee on February 11, 1992, alleging, in effect, that the appellee breached its fiduciary duty in excluding him from the distribution of the trust. By order of May 17, 1995, the circuit court granted summary judgment to the Bank on the grounds that the appellant’s claims were time-barred under all potentially applicable statutes of limitations and were dependent upon an unwarranted retroactive application of a judicial change in substantive law. Because we agree with the circuit court that the appellant’s claims are time-barred, we do not reach the substantive law issue.

II

At the outset, we point out that “[a] circuit court’s entry of summary judgment is reviewed de novo.” Syllabus Point 1, Painter v. Peavy, 192 W.Va. 189, 451 S.E.2d 755 (1994). Furthermore, “[a] motion for summary judgment should be granted only when it is clear that there is no genuine issue of fact to be tried and inquiry concerning the facts is not desirable to clarify the application of the law.” Syllabus Point 3, Aetna Casualty & Surety Co. v. Federal Insurance Co. of New York, 148 W.Va. 160, 133 S.E.2d 770 (1963). Accordingly, “[sjummary judgment is appropriate where the record taken as a whole could not lead a rational trier of fact to find for the nonmoving party, such as where the nonmoving party has failed to make a sufficient showing on an essential element of the case that it has the burden to prove.” Syllabus Point 4, Painter v. Peavy, 192 W.Va. 189, 451 S.E.2d 755 (1994). With this in mind, we will now examine the case before us.

III

The issue is whether the appellant’s claims for relief against the appellee are barred by the statute of limitations.

First, we must determine whether the appellant’s suit is governed by the statute of limitations. It is the position of the appellant that his suit against the appellee is in equity, and, therefore, no statute of limitations is applicable. We do not agree. This Court has stated that: “Statutes of limitations are not applicable in equity to subjects of exclusively equitable cognizance. Matters pertaining to fiduciary relationships come within the rule.” Syllabus Point 3, Felsenheld v. Bloch Bros. Tobacco Co., 119 W.Va. 167, 192 S.E. 545 (1937). An action concerning the violation of a trust is “a matter peculiarly of equity cognizance” in that “[cjourts of equity have always claimed and exercised exclusive jurisdiction in cases of trusts and over the conduct of those appointed to execute them.” Felsenheld, 119 W.Va. at 173-174, 192 S.E. at 548. We have also recognized, however, that the statute of limitations is tolled only so long as the trust continues, so that once the trust ceases, the statute of limitations begins to run. Bennett v. Bennett, 92 W.Va. 391, 398, 115 S.E. 436, 438 (1922) (“... direct or express trusts, so long as they continue as between trustee and the beneficiary, are not subject to the statute of limitations ...”). There are different ways in which the statute of limitations may begin to run. For example, once a trustee notifies a beneficiary that he or she is repudiating the trust, the statute of limitations begins to run. In Syllabus Point 3, Currence v. Ralphsnyder, 108 W.Va. 194, 151 S.E. 700 (1929) we stated: “The statute of limitations does not run against an express trust until the beneficiary has notice that the trustee has repudiated the trust.” See also Crawford v. Caplinger, 110 W.Va. 498, 158 S.E. 717 (1931). Also, it has been recognized elsewhere that once a trust terminates by its own terms, the activities of the trustee become subject to the running of the statute of limitations.

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Cite This Page — Counsel Stack

Bluebook (online)
498 S.E.2d 241, 201 W. Va. 480, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vorholt-v-one-valley-bank-wva-1998.