Opinion ID: 1153076
Heading Depth: 1
Heading Rank: 14

Heading: Which statute applies?

Text: Miss. Code Ann. § 15-1-39 applies to either express or constructive trusts. Wholey v. Cal-Maine Foods, Inc., 530 So.2d 136, 139 (Miss. 1988); Thames v. Holcomb, 230 Miss. 387, 395, 92 So.2d 548 (1957). [12] However, the application of § 15-1-39 is limited, in that the cause of action and remedy of the case must be purely and exclusively equitable, or the general six-year statute of limitations will be applied. Wholey v. Cal-Maine Foods, Inc., 530 So.2d at 139. In Wholey v. Cal-Maine Foods, Inc., 530 So.2d 136 (Miss. 1988), we reversed the dismissal of suits brought by limited partners against the general managing partners for breach of fiduciary duty. The trial court had determined that the limited partners' causes of action were based upon fraud, cognizable by courts of law, and had granted summary judgment for the managing partners on the grounds that the six-year statute of limitations had run. On appeal, we considered whether the actions were in fact based on fraud, cognizable at law, or whether they were purely equitable in nature, thus mandating application of the ten-year statute. We held that the limited partners' causes of action were based on the breach of fiduciary duties arising from the partnership relation, such breach giving rise to a constructive trust. We stated: In Stebbins v. Hayes, 379 So.2d 898 (Miss. 1980), this Court looked to the allegation in the complaint in determining that the theory of the case was in the nature of an implied trust or the right to a partnership accounting, so as to mandate the application of the ten-year statute of limitations in § 15-1-39. Wholey v. Cal-Maine Foods, Inc., 530 So.2d at 140. We held that the ten-year, rather than the six-year statute of limitations should have been applied. See also Patton v. Pinkston, 86 Miss. 651, 38 So. 500 (1905) (where defendant received money from testator during testator's lifetime to invest for testator's benefit, but invested in lands for his own benefit without testator's knowledge, defendant held land in constructive trust for testator's legatees, and suit to enforce the trust would not be barred until ten-year statute of limitations applicable to trusts had fully run). Alvarez's primary argument in this case  the existence of a constructive trust  is based in equity. Alvarez also argues a breach of contract, the remedy for which would be found at law. However, a plaintiff may plead claims in the alternative; Alvarez's claims for a remedy at law do not preclude his recovery on equitable grounds, if appropriate. The ten-year statute, not the six-year statute, is applicable to Alvarez's claims for equitable relief on the theory of a constructive trust.