Smith v. Suntrust Bank
325 Ga. App. 531
| Ga. Ct. App. | 2014Background
- Fisher Family Trust (1969) created for Emily Crum and relatives; trustees Crum, Linder, and SunTrust Bank as corporate trustee.
- Century Center Property (approx. 88 acres) held by trust; ground lease expires 2058; disposal required living beneficiaries’ permission.
- Trust created three sub-trusts: Trust A (10%), Trust B (60%), Trust C (30% with Crum as beneficiary and SunTrust administering).
- Trust provisions required annual accounts to Mr. Fisher or beneficiaries; Trust C distributions to maintain health, support, and education with means-testing.
- October 1, 1979: Century Center Property conveyed to Crum and husband via Bessie Fisher straw-man transaction for $300,000; complaints allege undervaluation and lack of market procedure.
- 2011: Appellants, current beneficiaries, challenge conveyance and Trust C distributions; trial court granted summary judgment based on statute of limitations; appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether fraudulent concealment tolled the statute of limitations for the straw-man conveyance claim | Appellants allege concealment created jury fact issue on tolling | Trustees argue limitations bar claim absent tolling | Genuine issue of material fact; tolling potentially applicable for Rob Smith |
| Whether fraudulent concealment tolls the limitation for the Trust C distribution claim against SunTrust | SunTrust concealed improper distributions to Crum; Rob Smith not informed | No tolling; letters provided notice; due diligence questions | Rob Smith claim tolled; Roy Smith beneficiaries not tolled due to notice and diligence |
| Whether fraudulent concealment tolls the limitation for failure to provide annual accounting of Trust C | SunTrust failed to provide annual accounting; concealment tolled | No tolling beyond previous findings; accounting duty exists | Rob Smith claim tolled; Roy Smith beneficiaries not tolled; separate accrual for each mismanagement act allowed |
| Whether the trial court should address additional grounds for summary judgment on remand | Other grounds raised below should be resolved | Remain open to trial court for additional grounds | Remanded with instruction to consider additional grounds unaffirmed by trial court |
| Effect of notices/letters (e.g., June 5, 1990) on tolling and discovery | Letters did not provide full disclosure; forged timing issues remain | Letters may have given notice of issues | Material facts genuine regarding notice; depending on beneficiary, tolling and due diligence vary |
Key Cases Cited
- Hasty v. Castleberry, 293 Ga. 727 (Ga. 2013) (limits on written reports triggering shortened statute; define report content)
- Goldston v. Bank of America Corp., 259 Ga. App. 690 (Ga. App. 2003) (fraudulent concealment tolling where bank’s conduct concealed trust mismanagement)
- Cochran Mill Assoc. v. Stephens, 286 Ga. App. 241 (Ga. App. 2007) (fiduciary duties; fraudulent concealment; standard for tolling)
- Mayfield v. Heiman, 317 Ga. App. 322 (Ga. App. 2012) (issues of due diligence and tolling; retroactivity distinctions discussed)
- Allen v. Columbus Bank & Trust Co., 244 Ga. App. 271 (Ga. App. 2000) (new causes of action accrue for each act of mismanagement; limitations apply per act)
- Fed. Ins. Co. v. Westside Supply Co., 264 Ga. App. 240 (Ga. App. 2003) (due diligence and discovery in fraud tolling context)
- Brown v. Brown, 209 Ga. 620 (Ga. 1953) (trustee duties and disclosure obligations in tolling analysis)