New Amsterdam Casualty Company, and Cross-Appellant v. Gladys N. Waller, and Cross-Appellee

HAYNSWORTH, Circuit Judge.

In this action by a creditor to reach real estate improved by expenditures of the debtor’s money but held in the name of the debtor’s wife, the District Court held, in the absence of an affirmative intention to defraud the creditor, the action was not controlled by the North Carolina 3-year statute of limitations applicable to actions founded upon fraud. 1 Since expenditure of the debtor’s funds to improve the wife’s property was fraudulent in law, whether the parties consciously realized the fraudulent nature of their acts, we think the 3-year statute should have…