333 Ga. App. 864
Ga. Ct. App.2015Background
- Robert and Elizabeth Robertson purchased residential property in the 1990s; title was later conveyed by warranty deed to their daughter Melanie Collins in 2002. The parties had a verbal agreement that the Robertsons could continue living on the property for life.
- Elizabeth (who had serious medical issues) and Robert divorced in 2008; Elizabeth’s verified divorce complaint stated the parties did not jointly own real estate and she sworn the marriage was irretrievably broken, though the couple continued to live together and share finances afterward.
- Collins deeded the property to Robert alone in August 2008 for nominal consideration after mortgaging part of the acreage; Robert thereafter treated the property as his and later told Elizabeth and her mother Dorothy to vacate in 2013.
- In April 2013 Elizabeth and Dorothy sued to set aside or modify the divorce decree, to enforce an implied trust, and for conversion; Robert moved for partial summary judgment asserting statutes of limitation and the defense of unclean hands.
- The trial court granted partial summary judgment to Robert as to the request to set aside/modify the divorce decree and as to Dorothy’s implied-trust claim, but denied relief on conversion; Elizabeth appealed as to enforcement of an implied trust and the unclean-hands ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the motion to set aside/modify the 2008 divorce decree is time-barred | Robertson: fraud tolled the 3-year limitation because she did not discover Robert’s scheme until just before suit | Robertson (defendant): action filed >3 years after decree; no fraudulent concealment tolled the statute | Court: Barred by OCGA § 9-11-60(f); Elizabeth knew of the sham divorce in 2008 so fraudulent-concealment tolling fails |
| Whether an implied trust claim is barred by the 7-year statute of limitations | Robertson: implied trust arises from 2002 conveyance so suit timely or tolling applies | Robert: 2002 deed triggered limitations; suit brought >7 years after 2002 | Court: As to Elizabeth, claim is NOT time-barred because any constructive-trust claim accrued when Robert reacquired title in 2008, and suit was within 7 years of that conveyance |
| Whether an implied trust (resulting or constructive) exists in Elizabeth’s favor | Elizabeth: joint purchase, mortgage payments, large improvements, and shared use support an implied constructive trust | Robert: no intent to create a trust; deeds show transfers to Collins then to Robert; no resulting-trust intent | Court: No evidence of a resulting trust as a matter of law, but genuine issue of material fact exists for a constructive trust as to Elizabeth (trial required) |
| Whether Elizabeth is barred by the equitable doctrine of unclean hands | Robert: Elizabeth engaged in fraud by conveying the property to her daughter to defeat creditors, so she is barred from equitable relief | Elizabeth: Robert engaged in the same alleged wrongdoing; both are equally at fault | Court: Unclean-hands defense rejected because Robert engaged in similar misconduct and fault is essentially equal; he cannot invoke the defense |
Key Cases Cited
- Swanson v. Swanson, 269 Ga. 674 (Supreme Court of Georgia) (seven-year limitations rule for implied trusts and accrual when adverse claim or notice occurs)
- Ansley v. Raczka-Long, 293 Ga. 138 (Supreme Court of Georgia) (definitions and distinctions of resulting and constructive trusts)
- Weekes v. Gay, 243 Ga. 784 (Supreme Court of Georgia) (constructive trust to prevent unjust enrichment where one party paid purchase price and made payments)
- Zaglin v. Atlanta Army Navy Store, Inc., 275 Ga. App. 855 (Georgia Court of Appeals) (unclean-hands doctrine and equitable relief principles)
- Lehman v. Keller, 297 Ga. App. 371 (Georgia Court of Appeals) (elements of fraud relevant to tolling statute of limitations)