Opinion ID: 1850658
Heading Depth: 1
Heading Rank: 2

Heading: The State Statute of Limitations.

Text: Iowa Code section 614.1(4) provides that actions founded on unwritten contracts, those brought for injuries to property, or for relief on the ground of fraud in cases heretofore solely cognizable in a court of chancery, and all other actions not otherwise provided for in this respect [must be commenced], within five years.... Section 614.4 provides for the extension of the time for bringing actions based on fraud: In actions for relief on the ground of fraud or mistake, and those for trespass to property, the cause of action shall not be deemed to have accrued until the fraud, mistake, or trespass complained of shall have been discovered by the party aggrieved. The district court ruled that, because Evelyn Kenkel had transferred some of the embezzled proceeds to the payment of a personal debt more than five years before INNK Land commenced this action, INNK Land's claim was barred by section 614.1(4). It ruled that, as a matter of law, INNK Land knew of the fraudulent payment by Evelyn Kenkel, and it therefore knew that INNK Land had a claim for fraudulent transfers as to all the assets. The extension of time provided by section 614.4 therefore began to run on Evelyn Kenkel's illegal transfer of funds, which was more than five years before this action was commenced. We do not agree. The fact that one transfer had been made does not as a matter of law establish that the plaintiff knew the extent of the transfers, and even the access of the plaintiff to such knowledge of the isolated transfer is in some doubt. For summary judgment purposes, there is clearly a fact issue as to when INNK Land knew of the fraudulent transfer for purposes of applying section 614.4. We reverse and remand for trial. REVERSED AND REMANDED.