Court Opinion

ID: 9791717
Source: CourtListenerOpinion
Date Created: 2023-08-31 02:16:40.551982+00
Date Added: 2024-06-11T07:37:38.117375
License: Public Domain

Thompson, J.,
dissenting from the reversal of the judgment below dismissing the cross-claim:
The Allens sought damages from Title Insurance for its failure to record their deed of trust. The district court ruled that their claim was barred by limitations. NRS 11.190(3). This ruling was correct. Their claim had to be presented within three years of their discovery of facts constituting the fraud or mistake, or run the risk of defeat if limitations was raised in bar. Title Insurance raised that defense.
The Allens discovered the failure to record in August 1956, and perhaps as early as April of that year when they received their trust deed in die mail and without the recording data on its face. In any event, on August 29, 1956 the Allens recorded that document. They did this upon their own motivation and apparently were aware of the need for recordation to protect their rights as against innocent third persons. Meanwhile, on August 10, 1956, Phillips conveyed the property to Yuma, a bona fide purchaser. That conveyance was recorded, and the Allens were charged with constructive notice thereof. NRS 111.320; Allison Steel Manufacturing Co. v. Bentonite Inc., 86 Nev. 494, 471 P.2d 666 (1970); State v. Langan, 36 Nev. 577, 137 P. 517 (1913). Actual knowledge of the mistake together with constructive knowledge of the intervening conveyance and the possible damage to flow therefrom might, without more, be deemed by some courts to start the running of the limitation period [Strong v. Clark, 352 P.2d 183 (Wash. 1960); cases collected Annot. 137 A.L.R. 268] and thus bar any claim for relief asserted by the Allens after August 10, 1959. The impact of the constructive notice provisions of our recording statute upon the running of a statute of limitations as distinguished from a problem of title need not be here decided since it is otherwise clear that the Allens possessed knowledge of facts that would cause a reasonable person to inquire further. Aldabe v. Adams, 81 Nev. 280, 402 P.2d 34 (1965); Howard v. Howard, 69 Nev. 12, 239 P.2d 584 *273(1952). Had further inquiry been made the fraudulent intervening conveyance would have been discovered.
The Allens had participated in several prior property transactions. This was not their maiden voyage. They apparently knew of the need to protect their security by recording their trust deed and did so on August 29, 1956. Payments upon the note which the trust deed secured stopped in February and their debtor, Phillips, disappeared and could not be found. This was a warning of danger. Their concern was evident for they consulted a lawyer. The lawyer’s advice is not revealed. All of these circumstances compel the conclusion that the Allens’ claim for damages from Title Insurance, asserted more than 12 years after they learned of the mistake and at least 11 years after they should have known of the Phillips-Yuma conveyance, is barred by limitations.