2013 Ohio 5308
Ohio Ct. App.2013Background
- PNC Bank filed a complaint alleging fraudulent transfer, to impose a lien, and for a purchase money resulting trust concerning the 327 Poplar Avenue property.
- The property was titled in Linda Lewis's name in 2003, while Theodore Lewis originally obtained the credit and claimed beneficial interest.
- PNC sought judgment against Linda for $37,558.62 and a lien on Theodore’s equitable interest.
- The trial court dismissed the complaint under Civ.R. 12(B)(6) as time-barred for fraudulent transfer under R.C. 1336.09(A)(1).
- The appellate court held the underlying action is grounded in fraudulent transfer, and the applicable four-year statute of limitations governs, not a separate ten-year period for a purchase money resulting trust.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the purchase money resulting trust claim is time-barred | PNC argues a 10-year period applies. | Lewis contends the four-year fraudulent transfer period does not govern the trust claim. | Time-bar not applicable to trust if grounded in fraudulent transfer; court held four-year period governs. |
| Whether the complaint properly pled a purchase money resulting trust | PNC contends the complaint implied a purchase money trust. | Lewis argues lack of explicit allegations of purchase money intent. | Even if pled, the complaint is barred by statute of limitations. |
| Whether the action pleaded fraud and trust remedies are properly connected | PNC asserts equitable remedy arises from fraudulent transfer. | Lewis maintains the remedy is distinct and not timely. | Remedy falls under fraudulent transfer statute of limitations. |
| Whether the trial court erred by dismissing the entire complaint | PNC asserts at least one claim could survive the tolling analysis. | Lewis argues dismissal of all claims is proper given the bar. | Court affirmed dismissal of the entire complaint. |
| Whether the four-year statute applies to the underlying cause of action | PNC asserts four-year window for fraudulent transfer. | Lewis maintains different timeliness applies. | Statute of limitations for fraudulent transfer governs the action. |
Key Cases Cited
- Summers v. Summers, 121 Ohio App.3d 263, 699 N.E.2d 958 (4th Dist. 1997) (describes resulting trust as equitable remedy and its applications)
- Brate v. Hurt, 174 Ohio App.3d 101, 880 N.E.2d 980 (12th Dist. 2007) (discusses purchase money and express trusts; intent controls)
- Peterson v. Teodosio, 34 Ohio St.2d 161, 297 N.E.2d 113 (Ohio 1973) (statutes of limitations attach to causes of action, not remedies)