Trusts & Estates – Challenge to Transactions – Statute of Limitations – Equitable Estoppel/Tolling – Imputed Knowledge

Statute of limitations could not be equitably estopped or tolled where decedent’s attorney had knowledge of the facts underlying the estate’s claim that could be imputed to decedent.

We grant defendants’ motion for partial summary judgment based on the statute of limitations.

Defendants, in their individual capacities and their capacities as co-trustees and beneficiaries, and defendant Marjorie King in her role as manager of Friendship Management, LLC, and the LLC moved for partial summary judgment based on the statute of limitations on all claims relating to the establishment and initial transactions of the Wellin Family 2009 irrevocable trust. The motion involved three cases arising from disputes by and among defendants and their stepmother, the trustee of the Keith S. Wellin Florida Revocable Living Trust and administrator of Keith’s estate.

In support of their motion, defendants argued that the statute of limitations on claims arising from a 2009 transaction had expired by the time Keith filed his initial complaint against defendants.

We grant defendants’ motion for partial summary judgment. We first note that because the statute of limitations is procedural under South Carolina law, we apply South Carolina’s three-year statute of limitations for actions arising from contract. We reject the estate’s argument that either equitable estoppel or equitable tolling precluded defendants from raising a statute of limitations defense. The court ruled that, under agency principles, Keith’s attorney’s knowledge of the transaction was imputed to Keith. As a result, we rule that the estate cannot prove lack of knowledge of the truth of the facts in question. We also hold that, although the estate makes many allegations about how defendants prevented the estate from discovering the claims relating to the 2009 transaction, there was no allegations about who the estate was prevented from filing the claims when it had constructive knowledge of the facts underlying the claims. Accordingly, we rule that the statute of limitations accrued when the 2009 transaction was executed.

Partial summary judgment granted.

Wellin v. Wellin (Lawyers Weekly No. 010-002-20, 17 pp.) (David C. Norton, J.) 2:13-cv-01831. Jan. 8, 2020. D.S.C.