L.H. Manning v. Robert Perry, 242 So. 3d 972

Background

Henry and Addie Manning quitclaimed an 86-acre parcel to their son Edward (Ed) in 1994; Henry died shortly after and Addie died in 1998.
Ed held record title until his death in 2011; his will was probated and the 86 acres passed to his widow Joan, reflected in an ancillary Mississippi probate judgment in 2013.
Joan sold 78 acres to Robert and Paige Perry in October 2013; the Perrys obtained a bank loan from Pike National Bank and purchased title and owner’s title insurance. A lis pendens was filed by the Mannings after the Perrys’ deed was recorded.
Ed’s six siblings (the Mannings) repeatedly sued Joan (and later Joan, the Perrys, and the Bank), claiming the 1994 quitclaim was actually an implied/constructive trust in favor of all siblings and seeking reformation and imposition of a constructive trust on the property.
The chancery court granted partial summary judgment dismissing the Perrys and the Bank, concluding the Perrys were bona fide purchasers for value without notice and the Bank a bona fide lienor; the Mannings appealed as to the Perrys.
On appeal the court affirmed, holding the Mannings’ constructive-trust claim was time-barred under the ten-year statute governing such claims and noting the potential prejudice to title certainty if otherwise.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the 1994 quitclaim created an implied/constructive trust in favor of Ed’s siblings	The quitclaim was intended to make Ed trustee for all siblings; equity should impose a constructive trust and reform title	The deed conveyed fee simple title; no recorded notice of any trust; subsequent purchasers relied on the public records	Held: Claim for constructive trust is barred by the ten-year statute; not proved in time, so title upheld as conveyed
When the statute of limitations for a constructive trust began to run	Mannings argued cause accrued later (e.g., probate, Ed’s death, or later events) so their 2013 suit was timely	Perrys/Bank argued accrual began on the 1994 deed (or at latest Addie’s 1998 death), so suit was too late	Held: Cause accrued no later than 1998; ten-year period expired before 2013, barring the claim
Whether Perrys were bona fide purchasers for value without notice	Mannings argued Perrys knew or should have known of prior litigation/claims	Perrys pointed to title search, title insurance, counsel and realtor advice, and lack of recorded notice at closing	Held: The chancery court relied on bona fide purchaser doctrine to dismiss Perrys; appellate court affirmed on statute of limitations grounds (bona fide purchaser issue moot)
Whether the Bank’s purchase-money lien is subject to the Mannings’ claim	Mannings sought to subject the Bank’s lien to the constructive trust	Bank argued it extended value and had no record notice of any adverse claim	Held: Bank entitled to summary judgment and retains its lien; appellate court affirmed dismissal of Bank as defendant

Key Cases Cited

Crist v. Loyacono, 65 So. 3d 837 (Miss. 2011) (standard of review for summary judgment)
Barriffe v. Estate of Nelson, 153 So. 3d 613 (Miss. 2014) (constructive-trust standard; clear-and-convincing proof required)
Smiley v. Yllander, 105 So. 3d 1171 (Miss. Ct. App. 2012) (distinction between express and implied/constructive trusts)
Alvarez v. Coleman, 642 So. 2d 361 (Miss. 1994) (accrual rule for trusts: statute runs from act making actor chargeable)
Thames v. Holcomb, 92 So. 2d 548 (Miss. 1957) (cause of action for an implied trust accrues when the act creating chargeability occurs)
Stebbins v. Hayes, 379 So. 2d 898 (Miss. 1980) (right to enforce an implied trust accrues at the time of the underlying act)
Wheeler v. Burton, 958 So. 2d 1266 (Miss. Ct. App. 2007) (bona fide purchaser is an affirmative defense requiring proof)
Memphis Hardwood v. Daniel, 771 So. 2d 924 (Miss. 2000) (burden of proof for bona fide purchaser defense)