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BALLENGER v. HOUSTON

Supreme Court of Georgia1950-11-14No. No. 17279
207 Ga. 438

Summary

Holding. The trial court erred in sustaining the demurrers to the petition; judgment reversed.

A cotenant who receives more than their fair share of rents and profits from commonly owned property can be required to account for those amounts to the other cotenant. Equity courts have jurisdiction over such accounting disputes between cotenants, as well as partition actions, particularly when the property cannot be divided without sale or when accounting issues involving an insolvent cotenant are involved. A cotenant cannot claim adverse possession against another cotenant without first establishing actual ouster, exclusive possession following demand, or express notice of adverse intent; twenty years of such adverse possession is required before the other cotenant's rights are barred.

The statute of limitations does not begin running against a cotenant who has received excess profits until that cotenant begins holding the surplus adversely to the other cotenant and the other cotenant has knowledge of this fact. A laches defense—claiming unreasonable delay in filing suit—is not valid when the plaintiff promptly brought an action for partition and accounting upon learning that the defendant cotenant was claiming sole title and refusing to account for rents and profits.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Equity jurisdiction over partition and accounting between cotenants
  • Liability of cotenant receiving excess rents and profits
  • When statute of limitations begins running on accounting claims between cotenants
  • Sufficiency of laches defense in partition and accounting actions

Procedural posture

On appeal from a trial court's sustaining of general and special demurrers to an amended petition for partition of land and accounting between cotenants.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Almand, Justice.

“Equity has jurisdiction in cases of par tition, whenever the remedy at law is insufficient, or peculiar circumstances render the proceeding in equity more suitable and just.” Code, § 85-1501. “Where matter of account against an insolvent cotenant for past profits of the land is involved, and where partition of the premises cannot be made without a sale, equity has jurisdiction to decree partition and account. The element of account and insolvency will give equity jurisdiction.” Lowe v. Burke, 79 Ga. 164, 165-66 (3 S. E. 449). See also Cates v. Duncan, 181 Ga. 686 (1) (183 S. E. 797). If a tenant in common “receives any rent or other profit, or commits any waste, or if he by any means deprives his cotenant of the use of his fair proportion of the property, or if he appropriates all to his exclusive use, or if the property is of such a character as that the use of it must necessarily be exclusive, he shall be liable to account to his cotenant.” Code, § 85-1003. “If one tenant in common receives more than his share of the rents and profits, he shall be liable therefor as agent or bailee of the other cotenant.” § 85-1004. A court of equity has jurisdiction over matters of accounting where the accounts are between cotenants. § 37-301. “There may be no adverse possession against a cotenant until actual ouster, or exclusive possession after demand, or express notice of adverse possession; in any of which events the cotenant may sue at law for his possession.” § 85-1005. Before one co-tenant can claim prescriptive title by reason of adverse possession within the meaning of Code § 85-406, 20 years from the beginning of such adverse possession must elapse before the right of the other tenant is barred. § 85-1005, supra; Mitchell v. Gunter, 170 Ga. 135, 144 (152 S. E. 466). If one tenant in common receives more than his share of the profits, the statute of limitations does not commence tp run in his favor so as to bar an action of account by his cotenant until such tenant begins to hold such surplus adversely to the cotenant, and knowledge of that fact comes to the cotenant. Huff v. McDonald, 22 Ga. 131 (2); Smith v. Smith, 141 Ga. 629 (9) (81 S. E. 895); George v. Bullard, 178 Ga. 589 (2) (173 S. E. 920). In an equitable action for the partition of land and for an accounting, the defense of laches raised by general demurrer is not well taken when the pleaded facts show that the plaintiff, upon being informed that the defendant, her cotenant, was asserting title to the property and refused to account for the rents and profits, promptly instituted her action for partition and accounting. See Teasley v. Bradley, 110 Ga. 497 (1) (35 S. E. 782); Reynolds v. Dorsey, 188 Ga. 218 (3 S. E. 2d, 564); City of McRae v. Folsom, 191 Ga. 272 (11 S. E. 2d, 900).

We have examined the special grounds of the several demurrers, all of which challenged the legal sufficiency of the allegations of fact in certain stated paragraphs of the original petition and the amendments thereto. The special grounds of demurrer which were not met by the amendments to the petition are without merit.

Applying the foregoing principles of law to the petition as amended in this case, it was error for the trial judge to sustain the general and special demurrers.

Judgment reversed.

All the Justices concur.