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Kerce v. Bent Tree Corp.

Court of Appeals of Georgia
May 24, 1983
305 S.E.2d 462 (Ga. Ct. App. 1983)

Opinion

65850.

DECIDED MAY 24, 1983.

Action on deed. Pickens Superior Court. Before Judge Mills.

William H. Newton III, for appellants.

E. Kendrick Smith, Phillip M. Landrum, Jr., Dana E. Garrett, for appellee.


Appellants Kerce visited the Bent Tree Corporation development in 1971, saw lot 3141, and decided to purchase it. Both the closing agreement and the warranty deed, however, identified the purchased property as lot 3247 of the development. The error was not discovered by appellants until April 1981 when they were attempting to sell the property. Alleging fraudulent inducement of the contract, appellants filed suit against appellee in August 1981. This appeal stems from the grant of summary judgment to appellee due to the expiration of the applicable statute of limitation.

A suit alleging fraudulent inducement in the purchase of property is an action for injury to property, and the four-year statute of limitation contained in OCGA § 9-3-31 (Code Ann. § 3-1002) is applicable. Phipps v. Wright, 28 Ga. App. 164 (1) ( 110 S.E. 511). OCGA § 9-3-31 (Code Ann. § 3-1002) begins to run on a cause of action on the date that a suit on the claim can first be successfully maintained. Limoli v. First Ga. Bank, 147 Ga. App. 755, 756 ( 250 S.E.2d 155). A claim of fraudulent inducement in the execution of a contract accrues on the date of the execution of the contract. Sears, Roebuck Co. v. Green, 142 Ga. App. 770 ( 237 S.E.2d 10). Thus, appellants' action, filed over nine years after the execution of the contract, is time-barred unless the tolling provisions of OCGA § 9-3-96 (Code Ann. § 3-807) can be put into effect. Under that statute, if the defendant is "guilty of a fraud by which the plaintiff has been debarred or deterred from bringing an action," the period of limitation runs from the time the plaintiff discovers the fraud. "`[I]t is well to remember that the fraud in question is not that which gives, but that which conceals a cause of action.'" Kirkley v. Sharp, 98 Ga. 484, 488 ( 25 S.E. 562). "`To constitute concealment of a cause of action so as to prevent the running of limitations, some trick or artifice must be employed to prevent inquiry or elude investigation, or to mislead and hinder the party who has the cause of action from obtaining information, and the acts relied on must be of an affirmative character and fraudulent.'" Middleton v. Pruden, 57 Ga. App. 555, 560 ( 196 S.E. 259). "`The fraud which will relieve the bar of the statute of limitation must be of that character which involves moral turpitude, and must have the effect of debarring or deterring the plaintiff from his action.' [Cit.] The only fraud that would toll the statute of limitation in the present action would be fraud actually preventing or deterring appellant[s] from bringing suit. . . Appellant[s] [have] not shown that [they were] prevented or deterred by any act of [appellee] from discovering the [difference in lot numbers]. In fact, there is nothing in the record to indicate the appellant[s] would not have discovered that fact at the time the documents were executed if [they] had chosen to read and review the documents carefully." Frates v. Sutherland, Asbill Brennan, 164 Ga. App. 243, 245 ( 296 S.E.2d 788). Since the action was not brought within four years of the date the action accrued and OCGA § 9-3-96 (Code Ann. § 3-807) is not applicable, summary judgment in favor of appellee was appropriate.

Judgment affirmed. McMurray, P. J., and Birdsong, J., concur.

DECIDED MAY 24, 1983.


Summaries of

Kerce v. Bent Tree Corp.

Court of Appeals of Georgia
May 24, 1983
305 S.E.2d 462 (Ga. Ct. App. 1983)
Case details for

Kerce v. Bent Tree Corp.

Case Details

Full title:KERCE et al. v. BENT TREE CORPORATION

Court:Court of Appeals of Georgia

Date published: May 24, 1983

Citations

305 S.E.2d 462 (Ga. Ct. App. 1983)
305 S.E.2d 462

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In spite of the fraud element, the discovery rule is not applied. See Kerce v. Bent Tree Corp., 166 Ga. App.…