Murphy v. Kirby
Murphy v. Kirby
Opinion of the Court
delivered the opinion of the Court:
1. The allegations of the bill make out a case of undue advantage taken of the complainant, and of gross fraud practiced upon him by one holding most confidential relations. Defendant had been his partner in other similar business, was his trusted friend and the husband of his daughter. He became surety upon the defendant’s bond, advanced the money from time to time to enable him to commence the work, and left everything, including all the payments and. receipts of money, to his exclusive management and control. Defendant kept the accounts and complainant relied
2. It remains to consider whether this right to reopen the account has been lost by reason of complainant’s long delay. The settlement was had about sixteen years before the filing of the bill. The parties are both living in the same place and competent to testify. The records of the -District of Columbia will ’show the payments made on account of the contract, and they, as well as the books of defendant, are presumably in existence.' There has been no change in the situation of the parties. No intervening claims or rights of other persons have accrued. There is no equitable consideration in the way of relief except the staleness of the demand — the. naked lapse of time. Without reasonable explanation, this lapse of time would be sufficient to bar relief, and hence it was incumbent upon complainant to allege with reasonable precision the necessary facts which may excuse his delay. Badger v. Badger, 2 Wall., 94; Felix v. Patrick, 145 U. S., 331.
The excuses for this delay, as presented by the bill, are substantially these: 1. The contract out of which the claim grew, and all transactions concerning it with the District government, were in defendant’s name. 2. Defendant managed and controlled everything, kept the accounts, and handled all the money. 3. Defendant was the son-in-law of complainant, who had implicit confidence in his integrity, accepted his statements as true, and was in possession of no information tending to excite reasonable suspicion and put him upon inquiry. Are these excuses sufficient? ■
Tested by the foregoing, we think the facts alleged in the bill sufficient to excuse complainant’s delay. Admitting in its full scope the soundness of the doctrine that mere ignorance of a right of action will not excuse delay, and that one must exercise proper diligence in -all cases, and be charged with the knowledge he would have acquired if he had exercised it, we can see no room for its application here. Some relations between persons dealing with each other excuse the want of the exercise of a care ordinary and proper in others. Some frauds do not require active or continuous efforts to keep them concealed; they conceal themselves. This case presents both phases. The trust relation between the parties, strengthened by close family ties, caused the complainant to accept as true that which, by careful investigation/he could have proved to be false. To charge him with the consequences of his confidence in the integrity of his son-in-law and partner, is virtually to say that it is want of proper care to give confidence under any circumstances; it is to say that complainant was bound to suspect falsehood, treachery and imposition on the part of the defendant. Such a doctrine would be at war with the better
The view we have taken is supported by the following well considered cases: Wickersham v. Lee, 83 Pa. St., 416; Watson v. Ivey, 32 Miss., 233; Bank v. Harris, 118 Mass., 147. In this last case, money was turned over by the bank to its president for the purpose of paying a certain debt, which he failed to do. The bank did not learn of this failure until after its right of action for the default had become barred. Undér the statute of Massachusetts it is provided that if the person liable to the action fraudulently conceals the cause thereof from the knowledge of the person entitled to bring the same, the action may be commenced at any time within six years after the person so entitled discovers that he has such cause of action. The court held that the relation of the parties was a good excuse for failure to make inquiry and discovery. The case has been cited with approval by the Supreme Court of the United States in a case before it arising under the same statute, Bates v. Preble, 151 U. S., 158, wherein the Massachusetts decisions are reviewed, and the distinction drawn between the cases where the transactions were between parties dealing, so to speak, as strangers to each other, and those where they occupied relations of trust, and where the frauds were of such nature as ordinarily to conceal themselves. We have heretofore applied the principle also in a case where fraud, practiced by an agent upon his unsuspecting principal, was held to suspend the running of the statute of limitations in an action at law. Lewis v. Denison, 2 App. D. C., 387.
It follows from what has been said that the facts alleged m the bill, on their face, present a sufficient excuse for the
The decree appealed from must be reversed, with costs to the appellant, and the cause remanded with direction to overrule the demurrer ; and it is so ordered.
Reference
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- MURPHY v. KIRBY
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