Aldan v. Pangelinan
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledAugust 24, 2011
Docket2010-SCC-0024-CIV
JudgeCastro
StatusPublished
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Full Opinion
IN THE
SUPREME COURT
OF THE
COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
CHRISTINE REBECCA S. ALDAN, JESSEE S. ALDAN, JR., VELMA MARIE A. REYES,
JESSICA RORY S. ALDAN, JEFFRY LEE S. ALDAN, and VINCENT RAYMOND S. ALDAN,
Plaintiffs-Appellants,
v.
GONZALO T. PANGELINAN, DIANA C. FERREIRA, BRADLEY ALLEN COATES, FRANK F.
FERREIRA, Jr., PACIFIC PROPERTIES MANAGEMENT CORP., M&T CORP., and EIJI
TANIGUCHI,
Defendants-Appellees.
SUPREME COURT NO. 2010-SCC-0024-CIV
SUPERIOR COURT NO. 09-0269 CIVIL
Cite as: 2011 MP 10
Decided August 24, 2011
Matthew T. Gregory and William R. Satterberg, Saipan, MP, for Plaintiffs-Appellants
Robert T. Torres, Saipan, MP, for Defendants-Appellees
BEFORE: MIGUEL S. DEMAPAN, Chief Justice; ALEXANDRO C. CASTRO, Associate Justice; and ALBERTO
C. LAMORENA, III, Justice Pro Tem.
CASTRO, J.:
¶1 Jesus T. Aldan’s children (“Aldans”) appeal from the trial court’s dismissal of their suit for
failure to state a claim pursuant to Commonwealth Rule of Civil Procedure 12(b)(6). The Aldans’ seek to
quiet title in certain real property that they hold in trust, but that is currently leased to Appellee Eiji
Taniguchi (“Taniguchi”). The Aldans argue that Taniguchi’s lease is void ab initio because at the time
their father originally leased the property in 1978 to Diana C. Ferreira (“Ferreira”),1 he did so in violation
of a divorce decree that required him to hold the property in trust for his children. The Aldans argue that
when the divorce court approved of the lease, it failed to appoint a guardian ad litem to protect their
interest in the property, and that this failure renders the judgment and the lease void. Taniguchi counters
that there was no duty to appoint a guardian ad litem, and further that Ferreira was a bona fide purchaser
without notice of the trust, so her interest was superior to that of the beneficiary minor children; thus, the
judgment is not void and the lease is valid. The trial court also found that the Aldans filed their cause of
action after the six year statute of limitations expired. The Aldans’ argue on appeal that the twenty year
period controls this action. We hold that the Aldans’ failed to state a claim because divorce court’s failure
to appoint a guardian ad litem does not render the lease void ab initio, and that the six year statute of
limitations period bars the Aldans’ suit. Therefore, we AFFIRM the trial court’s order.
I
¶2 In 1974 the Aldans’ parents divorced, and the divorce court ordered Jesus to hold certain real
property in trust for his six minor children. The order specified that Jesus could not transfer or convey any
interest in the property without first obtaining the court’s permission. In 1978, however, Jesus leased the
property to Ferreira without the court’s approval. At the time they entered into the lease, Jesus did not
inform Ferreira that he held the property in trust for his children. Ferreira later learned that Jesus held the
land as a trustee, and in 1979 she successfully intervened in Civil Action No. 33-73, the divorce action,
for the purpose of establishing her rights to the property. The divorce court found that while Jesus had
breached his trustee duties, Ferreira was a bona fide purchaser without notice, and pursuant to the
Restatement of Trusts, when a trustee breaches his duties by selling an interest in trust property to a bona
fide purchaser without notice, the beneficiaries of a trust cannot reclaim the property. Thus, the divorce
court approved the Ferreira lease, including Ferreira’s right to sublease, assign, or hypothecate her interest
without court approval. The court did not appoint a guardian ad litem, and it stated that its order did not
adjudicate the rights of the minor children. During the 1980s, Jesus and Ferreira made two modifications
to the original lease—both of which the divorce court approved and recorded. Subsequent to those
1
Since Ferreira originally leased the property, it has been subleased and assigned numerous times. The
current lease holder is Taniguchi.
modifications, the lease was then assigned and transferred several times, and all of the later leasees had
knowledge of the trial court’s orders pertaining to the property. Taniguchi ultimately acquired the
remainder of the lease.
¶3 In 2009, the Aldans filed this case, seeking to void Taniguchi’s lease. They brought their case
nineteen years after the youngest child reached the age of majority in 1990. They argued that Taniguchi’s
lease is void ab initio because the divorce court did not appoint a guardian ad litem to protect their
interests in the property when it approved of the original lease to Ferreira. The trial court found that the
Aldans’ argument failed to state a claim, and additionally that the applicable statute of limitations
mandated that the complaint be filed no later than 1996. Taniguchi was dismissed from the suit, and this
appealed followed. The Aldan’s timely filed their appeal, and we have jurisdiction pursuant to 1 CMC §
3102(a).
II
A. Rule 12(b)(6)
¶4 The issue is whether the trial court properly dismissed Taniguchi from the Aldans’ complaint for
failure to state a claim under Commonwealth Rule of Civil Procedure 12(b)(6). The Court reviews de
novo dismissals under rule 12(b)(6). O’Connor v. Div. of Pub. Lands, 1999 MP 5 ¶ 2. The Aldans argue
that they did state a claim because in 1979 the divorce court did not appoint a guardian ad litem to protect
their interests when it approved of the Ferreira lease. The Aldans further assert that this failure renders the
lease void ab initio, the void lease is a cloud on their title, and therefore, they should be allowed to
proceed with their quiet title suit. Taniguchi counters that the divorce court was under no duty to appoint
a guardian ad litem, and even if it should have appointed one, such a failure does not render the lease
void.
1. The Order
¶5 We must determine whether the failure to appoint a guardian ad litem renders the lease void/void
ab initio, voidable, or is of no consequence. In Reyes v. Reyes, the court described the difference between
a void and a voidable judgment:
A void judgment is a simulated judgment devoid of any potency because of jurisdictional defects
only, in the court rendering it. . . . A judgment entered where such defect exists has neither life
nor incipience, and a court is impuissant to invest it with even a fleeting spark of vitality, but can
only determine it to be what it is—a nothing, a nullity. Being naught, it may be attacked directly
or collaterally at any time.
2001 MP 13 ¶ 26 (citation omitted). A voidable judgment, also described as an irregular or erroneous
judgment:
is one rendered contrary to the method of procedure and practice allowed by the law in some
material respect. An erroneous judgment is one rendered in accordance with the method of
procedure and practice allowed by the law, but contrary to the law. Irregular and erroneous
judgments necessarily retain their force and have effect until modified by the trial court in
consequence of its authority in certain circumstances, or until vacated pursuant to new trial
procedures . . . or until reversed by an appellate court in review proceedings. Such judgments are
subject only to direct attack; they are not vulnerable to collateral assault.
Id. (citation omitted). A similar definition describes a “void” judgment as “of no legal effect; null,”
whereas a “voidable” judgment is “valid until annulled; esp., (of a contract) capable of being affirmed or
rejected at the option of one of the parties. This term describes a valid act that may be voided rather than
an invalid act that may be ratified.” Black’s Law Dictionary 1270 (7th ed. 1999). Similar to void, “void ab
initio” means “[n]ull from the beginning, as from the first moment when a contract is entered into.” Id.
This distinction is of great consequence because it determines whether Taniguchi’s lease is currently
invalid, or whether the Aldans only have an opportunity to annul it through a direct challenge. As
described in Reyes, we must first ascertain whether the divorce court had jurisdiction to render its
judgment over the property, because if it lacked jurisdiction, the order is void. See Reyes, 2001 MP 13 ¶
26. If the court did have jurisdiction then we will address whether the failure to appoint a guardian ad
litem also renders the judgment void or if it renders it merely voidable.
¶6 While the Aldans were not named parties in civil action 33-73, and the divorce court’s order
stated that their rights were not adjudicated, they were nevertheless under the court’s jurisdiction and
control as minors whose parents were named parties in a divorce proceeding. We made clear in Santos v.
Santos, 2000 MP 9 ¶ 12, that “when a court grants a divorce it may make any appropriate orders for child
custody, support for the children or either party and for the disposition of the parties’ interests in marital
property.” In other words, the children of divorcing parents are subject to all applicable court orders. See
also 8 CMC § 1311 (“Any decree as to custody or support of minor children or of the parties is subject to
revision by the court at any time upon motion of either party and such notice, if any, as the court deems
justice requires.”); cf. 8 CMC § 1101 (“The Commonwealth Trial Court has jurisdiction to grant any
adoption, annulment or divorce authorized under this division.”). Thus, even though the Aldans were not
named parties to their parents divorce, they were nevertheless subject to the court’s jurisdiction.
¶7 Furthermore, the jurisdiction that a court possesses over a divorcing couples minor children does
not end when the divorce is finalized, but rather, the court retains continuing jurisdiction over the children
as needed. In re Marriage of Olson, 850 P.2d 527, 532 (Wash. Ct. App. 1993). In In re Marriage of
Olson, the court stated that it “is clear that a court in a divorce action retains jurisdiction over children of
the marriage until they reach majority . . . .” Id. (quoting Dickson v Dickson, 529 P.2d 476, 479 (Wash.
Ct. App. 1974) review denied, 85 Wn.2d 1003, cert. denied, 423 U.S. 832 (1975)). In Dickson, 529 P.2d
at 479, the court issued an injunction that prohibited the husband from speaking and writing about his ex-
wife after the couple was divorced. The court reasoned that while the injunction restricted his first
amendment rights, the thrust of the order was to protect the couple’s minor children from his highly
disparaging remarks concerning their mother. Id. The court stated that these remarks harmed the children,
and that since his conduct affected their welfare, it was justified in issuing the injunction restricting his
speech. Id. Thus, the court’s continuing jurisdiction over a couple’s minor children allowed it to issue an
injunction that limited the husband’s first amendment rights. See Whitten v. Whitten, 592 So. 2d 183, 186
(Ala. 1991) (“The state, as parens patriae, possesses an interest sufficient to provide the court with
continuing equitable jurisdiction over minor children for whose welfare the judicial machinery has been
invoked.”); Application of Spaulding, 402 P.2d 52, 58 (Idaho 1965) (“. . . as regards the custody and
welfare of a minor child of a marriage, involved in a divorce proceeding, the district court exercises
continuing jurisdiction during the minority of the child.”); cf. Weathersbee v. Weathersbee, 1998 MP 14
¶¶ 5-11 (allowing for prospective modification of family court order providing for spousal support
pursuant to 8 CMC § 1311). Given the above authorities, we hold that a court involved in a divorce
proceeding retains jurisdiction over the couple’s minor children in regard to their custody and welfare
until they reach the age of majority.
¶8 With respect to the case before us, Ferreira intervened in the Aldans’ parents divorce action for
the purpose of establishing her rights in the property. While the custody of the children was not at issue,
matters pertaining to their welfare were—the disposition of property that was held in trust for their
benefit. Thus, the court enjoyed jurisdiction over the Aldans, and all orders it issued in civil action 33-73
applied to them just as they applied to their parents regardless of the divorce court’s statement that the
Aldans’ rights in the property were not adjudicated. See infra note 4. Therefore, the 1979 order is not void
for a lack of jurisdiction, and we must next determine what effect, if any, the divorce’s court’s decision to
not appoint a guardian ad litem had on its order and the lease.
¶9 A court’s failure to appoint a guardian ad litem does not render a judgment void, but at most such
a judgment is voidable. Stephenson v. Stephenson, 167 P.2d 63, 63 (Okla. 1945). In Stephenson, a minor
married couple sought a divorce. Both the husband and the wife were minors when they were married, the
husband was a minor when the wife filed for divorce, and he was still a minor when the trial court granted
her request. On appeal, the husband argued that the divorce order was void on the grounds that the trial
court lacked jurisdiction because he was a minor at the time, and it did not appoint a guardian ad litem.
167 P.2d at 65. The husband maintained that the failure to appoint a guardian ad litem meant that the trial
court lacked jurisdiction to enter the order, and therefore, the order was void. While the court recognized
that the trial court’s failure to appoint a guardian ad litem violated a state statute, the interests of the minor
husband were nevertheless adequately protected. Thus, that failure was insufficiently prejudicial to the
minor to warrant vacating the divorce decree. The court explained that “[a] judgment rendered against a
minor, without the appointment of a guardian ad litem, may be voidable, but is not void.” Id. The court
concluded by stating that the general presumption is that a trial court protects the rights of minors, and
that when it fails to appoint a guardian ad litem, it is up to the minor to demonstrate that he or she has
been prejudiced by that failure in order to overturn an otherwise valid judgment. Id. 65-66. Therefore, the
failure to appoint a guardian ad litem renders a court order voidable.2
¶ 10 The above authorities are all similar to the facts of this case—a guardian ad litem was not
appointed even though the court issued an order that affected the rights of unrepresented minors. The
divorce court might have erred in failing to appoint a guardian to protect the Aldans’, but this error does
not strip the court’s order of its validity. Stated differently, the divorce court’s failure to appoint a
guardian does not mean that the order it issued approving of the lease was a nullity. It was and still is a
valid and binding order that is only capable of being annulled. Therefore, like the judgment in Stephenson
that was upheld, the judgment before us is not void.
¶ 11 Since the 1979 order is merely voidable, we must determine whether it warrants being annulled.
In Reyes, 2001 MP 13 ¶ 26, we held that voidable judgment cannot be attacked collaterally. In an
analogous situation, in Robinson v. Gatch, 87 N.E.2d 904, 905 (Ohio 1949), the court held that “the
failure to appoint a guardian ad litem or trustee does not render the proceedings absolutely void, but only
voidable; such irregularity cannot be attacked collaterally, but it is such an irregularity as to be considered
reversible error.” Similarly, in Graham v. Commonwealth, 443 S.E.2d 586, 587 (Va. 1994), the court held
that even a criminal conviction was not void on account of the fact that no guardian ad litem was
appointed to defend the interests of the minor defendant, but only that the conviction was voidable. It
further held that such a voidable judgment could not be set aside in a collateral proceeding. Id. Thus, only
a direct challenge, and not a collateral attack, can annul a judgment for the failure to appoint a guardian
ad litem.3
2
See also Curtis v. Curtis, 229 N.W. 622, 623 (Mich. 1930); Levystein v. O’Brien, 17 So. 550, 550 (Ala.
1894); Medical Legal Consulting Servs. v. Covarrubias, 234 Cal. App. 3d 80, 88 (1991) (citing Pacific Coast etc.
Bank v. Clausen, 65 P.2d 352 (1937)) (the failure to appoint a guardian ad litem is not a jurisdictional defect);
Nesbitt v. Nesbitt, 402 P.2d 228, 230 (Ariz. Ct. App. 1965) (“Where the court otherwise has jurisdiction, a judgment
or decree rendered against an infant without appointment of a guardian ad litem, while it may be erroneous, at most
is only voidable, and not absolutely void.”); Bellchambers v. Ebeling, 13 N.E.2d 804, 808 (Ill. App. Ct. 1938).
The Aldans’ argue in both their opening and reply briefs that Gann v. Burton, 511 S.W.2d 244, 247 (Tenn.
1974), stands for the proposition that the failure to appoint a guardian ad litem may render a judgment void. Gann is
not quite that generous, as the opinion states that “the failure to appoint a guardian ad litem must affect the
substantial rights of the infant in order to avoid a judgment. Id. Gann did not discuss whether the failure to appoint
such a guardian renders a judgment void or voidable, and we do not find the case persuasive in light of the above
authority.
3
See also Trolinger v. Cluff, 57 P.2d 332, 334 (Idaho 1936); Levystein, 17 So. at 550; Hungate v. Hungate,
531 S.W.2d 650, 653 (Tex. App. 1975) (“. . . the failure to appoint a guardian ad litem to represent the interest of a
minor will result in a judgment being voidable, and subject to a direct attack, but not void and subject to a collateral
attack.”); Bellchambers, 13 N.E.2d at 808.
¶ 12 The United States Supreme Court has succinctly explained that a collateral attack on a judgment
“is an attack on a judgment in a proceeding other than a direct appeal.” Wall v. Kholi, _ U.S. _, 131 S. Ct.
1278, 1284 (2011) (citation and quotation omitted). In this case, the Aldans did not intervene in civil
action 33-73 by filing an action to overturn the order on the basis that their interest were not protected
because a guardian ad litem was not appointed. Instead, they filed a new complaint in the trial court that
sought to quiet title to the real property. On appeal their theory—that the failure to appoint a guardian ad
litem renders the lease void—is unequivocally an attack on the 1979 order. Thus, this appeal represents a
collateral attack on the 1979 order. As a matter of law, neither this Court nor the trial court can
collaterally disturb the divorce court’s judgment on the ground that it should have appointed a guardian ad
litem before it approved of the lease to Ferreira.4 Reyes, 2001 MP ¶ 13 ¶ 26. Therefore, the Aldans’ failed
to state a claim and the trial court property dismissed Taniguchi pursuant to Commonwealth Rule of Civil
Procedure 12(b)(6).
2. The Appointment of Guardians Ad Litem
4
We take judicial notice that the 1979 order stated that the Aldans were not named parties to the action and
that their rights were not adjudicated. Our holding today finds that the Aldans were nevertheless under the court’s
jurisdiction, and therefore, its order binds them. If the Aldans’ had known this, they might have attempted to
intervene in civil action 33-73 and directly attacked the judgment. While we recognize this situation, it is ultimately
the responsibility of the parties’ counsel to ensure that the correct legal theories are pled; if counsel fails, it is not the
Court’s responsibility to remedy such an oversight. We also take judicial notice of other potential infirmities in the
1979 order. First, the court states that the Aldans’ father held the property in trust for his children and that he also
held the property fee simple in his own name. We find this statement troubling, but we neither have the need, nor the
jurisdiction to address it at this time.
Finally, and perhaps most important, the original divorce decree placed the property in trust for the minor
children. In Reyes, 2001 MP 13 ¶ 13, the court determined whether a divorce court could create a trust out of marital
property. It cited to Taisacan v. Manglona, 1 CR 812, 816 (Dist. Ct. App. Div. 1983), for the proposition that a
divorce court could not establish a trust absent statutory authority, and that 8 CMC § 1311, which was substantially
identical to the statute that the Taisacan court interpreted, 39 TTC 103, did not permit the establishment of trusts. Id.
Thus, Reyes held that under our current law, and under the Trust Territory Code that controlled in civil action 33-73,
the creation of a trust in a divorce action was not permitted.
Examining Taisacan in greater detail, we find that the case presents a factual scenario extremely similar to
the underlying issue in this case. In Taisacan, the court ordered that certain real property awarded to the husband in
a divorce action be held in trust by him for the benefit of his children and his father. 1 CR at 814. The husband sold
the property, and several years later the children, in an attempt to regain title to the land, filed a quiet title suit
arguing that the buyer was not a bona fide purchaser without notice. The court refused to answer this question,
instead finding that “a court granting a divorce has no authority to establish a trust upon the property of one of the
parties to secure payments of alimony or amounts decreed for child support.” Id. at 816. The court further found that
“while such statutes give the divorce court broad authority to make distributions of the parties’ property and provide
for the protection and maintenance of the parties’ children, it has universally been held that the court is without
authority to give the property of the father to the children.” Id. at 817. The court held that while a trust could
potentially be established by a divorce court if its sole purpose was for the support of the children that was not the
situation before it. Id. at 819. As a result, it invalidated the trust, and found that the children had no claim to the
property. While we lack jurisdiction to examine the merits of the trust established in 1979, we note that upon first
glance, the establishment of this trust is strikingly similar to the trust invalidated in Taisacan.
¶ 13 Despite our inability to review the merits of the 1979 order, we are as a general matter troubled
by the divorce court’s failure to appoint a guardian ad litem. The court explicitly placed the property in
trust for the benefit of the Aldans, and then when their father breached his trust duty and leased the
property without first obtaining judicial approval, it approved the transaction without appointing a third
party to protect the minor beneficiaries’ interest. While as a matter of law, a bona fide purchaser without
notice of trust property prevails over minor trust beneficiaries, see Restatement (Second) of Trusts § 284
(1959),5 a guardian ad litem could have, for example, challenged the trial court’s determination that
Ferreira was a bona fide purchaser without notice or brought an action against the father for the breach of
his fiduciary duty. Given these facts, we will examine the trial court’s duty to appoint a guardian ad litem
for minors and incompetent adults.
¶ 14 Pursuant to Commonwealth Rule of Civil Procedure 17(c), the trial court is not required to
appoint a guardian ad litem in every instance. Rule 17(c) states in pertinent part: “[t]he court shall appoint
a guardian ad litem for an infant or incompetent person not otherwise represented in an action or shall
make such other order as it deems proper for the protection of the infant or incompetent person.” Com. R.
Civ. P. 17(c). The rule provides that the court shall either appoint a guardian or it shall make an order as it
deems proper for the protection of the minor. In either event, the court is charged with the unequivocal
duty of ensuing that it protects the rights of minors and other incompetent individuals. This rule exists
because the courts are ultimately the guardians of minors, and a guardian ad litem is an officer and agent
of the court charged with protecting a minor’s rights. Feliciano v. Superior Court, 1999 MP 3 ¶ 40. In
other words, the courts have an absolute duty to protect the rights of minors in all circumstances, and Rule
17(c) gives the trial court discretion in how to best protect those rights. Id.
¶ 15 In furtherance of the court’s duty to protect minors, the court in Roberts v. Ohio Casualty
Insurance Co., 256 F.2d 35 (5th Cir. 1958), provided guidance as to the contours of Federal Rule 17(c).
In Roberts, the lower court had set aside death benefits awarded to minor children by the Industrial
Accident Board of Texas. The court found that the district court’s failure to appoint a guardian ad litem
constituted reversible error because the court never considered such an appointment until after it issued
its judgment.6 It found that this exceeded the scope of Rule 17(c). In discussing the rule, the court held
that a trial court should usually appoint a guardian ad litem, but that it could also craft an appropriate
order to protect a minor. Id. at 39. If, however, a court decides to not appoint a guardian ad litem, it must
5
Restmt. § 284:
If the trustee in breach of trust transfers trust property to, or creates a legal interest in the subject
matter of the trust in, a person who takes for value and without notice of the breach of trust, and
who is not knowingly taking part in an illegal transaction, the latter holds the interest so
transferred or created free of the trust, and is under no liability to the beneficiary.
6
Roberts did not involve a collateral attack like the instant case.
first make an explicit judicial determination that the minor was otherwise protected. Id. Thus, a trial court
must “give due consideration to the propriety of an infant’s representation by a guardian ad litem before
he may dispense with the necessity of appointing the guardian.” Id. We agree with the court’s reasoning
in Roberts, and hold that the appointment of a guardian ad litem is favored, and if the trial court decides
against such an appointment, without crafting an otherwise appropriate order, it must first make a judicial
determination justifying its decision.
¶ 16 The divorce court had a duty to protect the Aldans’ rights, and while we cannot address the merits
of its decision to not appoint a guardian ad litem in this appeal, we nevertheless take this opportunity to
reiterate the importance of Rule 17(c). The courts have an unequivocal duty to always protect the interests
of minors. We hold that if the trial court does not appoint a guardian ad litem or craft an order that
adequately protects a minor’s or incompetent adult’s interests, it must make a judicial determination
justifying its decision.
B. The Statute of Limitations
¶ 17 As an additional ground for dismissing the action, the trial court found that the six year statute of
limitations found in 7 CMC § 2505 applied, and that the Aldans filing their complaint nineteen years after
the youngest child reached the age of majority exceeded this statutory timeframe. The Aldans’ maintain
that the twenty year period found in 7 CMC § 2502(a)(2) applies. The application of the statute of
limitations is a question of law that this Court reviews de novo. Century Ins. Co., LTD v. TAC Int’l
Constructors, Inc., 2006 MP 10 ¶ 8.
¶ 18 It is undisputed that the Aldans filed their cause of action nineteen years after the statutory period
began to toll, so the only issue is whether section 2502(a)(2) or 2505 applies. The six year period, 7 CMC
§ 2505, states in pertinent part that “[a]ll actions other than those covered in 7 CMC 2502, 2503, and
2504 shall be commenced within six years after the cause of action accrues . . . .” The twenty year period,
found in 7 CMC § 2502(a)(2), provides: “(a) The following actions shall be commenced only within 20
years after the cause of action accrues: . . . (2) Actions for the recovery of land or any interest therein.”
The Aldans’ maintain that this suit is one to quiet title, 7 CMC § 2502(a)(2) applies to quiet title actions,
and thus, they are within the statutory timeframe. Taniguchi argues, and the trial court agreed, that this is
an action to rescind a lease and that the six year statutory period bars appellants from proceeding with
their claim.
¶ 19 The trial court relied on Century Insurance Co. Ltd. v. Guerrero, 2009 MP 16, in determining that
the six year period prevented the Aldans from proceeding against Taniguchi. In Century, the Court had to
determine whether the six or twenty year period governed a suit concerning an agreement to lease. Id. ¶ 7.
It held that such agreements were more similar to contract actions than actions seeking the recovery of
land, and that the statute of limitations applicable to contracts, a six year period, also governed most
actions on a lease. Id. ¶ 29. In this case, the trial court found that the Aldans’ attempt to invalidate
Taniguchi’s lease was similar to an action to enforce an agreement to lease and that the six year period
applied.7
¶ 20 Determining which statutory timeframe applies requires ascertaining the gravamen of the Aldans’
complaint. Century Insurance, 2009 MP 16 ¶ 12 (citing Crisostimo v. Trust Territory, 7 TTR 375 (App.
Div. 1976)). In Century we stated that “an action seeking the recovery of real property does not
automatically trigger the longer statute of limitations period applicable to actions for the recovery of land
when the claim actually concerns a different theory.” Id. ¶ 16 (citing Watwood v. Yambrusic, 389 A.2d
1362 (D.C. Cir. 1978)). In support of this proposition, Century cited to Brown v. Ramsey, 472 S.W.2d
322, 323-24 (Tex. App. 1971), for the proposition that when a suit seeks to recover land by overturning a
judgment, the statute of limitations period governing the recovery of land is not applicable, but instead the
period for challenging judgments controls. Id. ¶ 19. Thus, it is the nature of the Aldans’ suit, and not their
pleaded theory or the ultimate outcome they desire that determines the applicable statute of limitations.
¶ 21 While the Aldans have framed their suit as one to quiet title, what they are really asking the court
to do is declare the 1979 judgment approving Taniguchi’s lease void. This situation is analogous to
Brown, 472 S.W.2d at 323-24, in that even thought the Aldans are ultimately trying to recover real
property held in trust for them, their action is really an attempt to collaterally overturn the divorce court’s
judgment by having this Court declare the order void ab initio. Title 7 CMC § 2502(a)(2) is inapplicable
to such actions because that statutory period does not govern attacks on a judgment.8 Thus, the Aldans
action is not governed by 7 CMC § 2502(a)(2), and the Aldans were untimely in filing their claim
nineteen years after the youngest child reached the age of majority.
III
¶ 22 In summary, the failure to appoint a guardian ad litem does not render Taniguchi’s lease void.
The failure to appoint a guardian ad litem results in court orders being voidable, and voidable orders can
only be attacked directly. Since the Aldans’ are collaterally attacking the order, they have failed to state a
cause of action. Moreover, the nature of the Aldans’ suit is not one to quiet title, and thus, the catch-all
7
The Aldans’ styled their complaint as one to declare Taniguchi’s lease void ab initio. The trial court,
however, determined that the lease was not void ab initio, thus making it valid, and therefore, the action was one to
rescind a lease.
8
We recognize that 7 CMC § 2502(a)(1) does govern such actions, but the Aldans have not properly
attacked the judgment in this lawsuit. Therefore, even though the limitations period is still twenty-years, we will not
apply subsection (a)(1) to this matter. Furthermore, if this suit was brought as one to challenge the judgment from
civil action 33-73, as discussed supra note 4, there is a possibility that Taisacan would result in this Court
invalidating the trust in its entirety. Such a result would eviscerate the Aldans’ ability to reclaim the property even if
the order was declared invalid for failure to appoint a guardian ad litem.
statute of limitations found in 7 CMC § 2505 bars their suit. Therefore, we AFFIRM the trial court’s
order that dismissed Taniguchi pursuant to Commonwealth Rule of Civil Procedure 12(b)(6).
SO ORDERED this ___ day of ___________, 2011.
_________________________________
MIGUEL S. DEMAPAN
Chief Justice
_________________________________
ALEXANDRO C. CASTRO
Associate Justice
_________________________________
ALBERTO C. LAMORENA, III
Justice Pro Tem