Opinion ID: 1434324
Heading Depth: 1
Heading Rank: 2

Heading: Claim Bar

Text: Defendant also claims that plaintiff's action was barred either by the statute of limitations or laches. As to the statute of limitations, she asserts that the four-year period set forth at NMSA 1978, Section 37-1-4 for constructive trusts began to run on the date of the original July 1974 conveyance and thus barred plaintiff's May 1981 lawsuit. She further argues there is no evidence of fraudulent concealment on her part which would have tolled the limitations period. Defendant's argument is misplaced. The proper rule of law to be applied here is that a limitations period does not run between a trustee and his beneficiary until there has been a repudiation of the constructive trust. Miller v. Miller, 83 N.M. 230, 490 P.2d 672 (1971). Prior to the time defendant moved out of the family residence in May 1979, there is no indication of her unequivocal assertion of exclusive ownership. Defendant's actions after July 1974 were generally not consistent with the exercise of control over the property. The family in fact generally viewed both parents as maintaining exclusive control until their 1979 divorce. Under Miller, the four year limitations period would not have commenced until defendant's earliest repudiation of the trust. There is simply no evidence of defendant's repudiation occuring more than four years prior to the May 26, 1981 date plaintiff brought his action. Defendant's laches claim is equally misdirected. The elements required for laches are 1) the defendant's invasion of plaintiff's rights; 2) plaintiff's delay in asserting his rights after he had notice and a reasonable opportunity to sue; 3) defendant's lack of knowledge that plaintiff would assert his claim; and 4) injury or prejudice to defendant in the event relief is accorded plaintiff or suit is not held to be barred. Butcher v. City of Albuquerque, 95 N.M. 242, 620 P.2d 1267 (1980). All required elements are not present in the instant case. Here, there was no unreasonable delay on plaintiff's part in bringing his claim after he had notice of defendant's repudiation. Furthermore, defendant was not prejudiced by imposition of the trust since she paid no consideration for the original conveyance of the property to her and was awarded $2,500 in costs and attorney's fees incurred in repairing and preserving the property. For these reasons, we conclude plaintiff's action was not time-barred by the statute of limitations or by the doctrine of laches.