59 Iowa 654 | Iowa | 1882
The evidence is - voluminous, and it is not practicable to do more than set forth the material facts which, in our opinion, it establishes.
On the fourteenth of July, 1877, the defendant, George W. Heiney, executed a promisory note to the plaintiffs for $100, on which they recovered judgment, March J, 1879, for
The conveyance from George W. to Eli Heiney was filed for record, October, 29, 1878. On the thirtieth day of October, 1878, and before the possession of the property was changed, Eli Heiney conveyed the property in question to W. M. Davis, a brother-in-law of George W. Heiney, for the consideration of $10,500. Davis assumed the payment of the $5,000 mortgage, and executed three promissory notes, all dated October 30,1878. One for $1,000, due March 1,1878, one for $2,000, due March 1, 1880, and one for $2,500, due March 1, 1881. In November, 1878, the defendant, B. F. Heiney, then not quite twenty-one years of age, rented the farm from his uncle, and was to pay $800. On the eleventh day of October, 1879, Davis conveyed the land in question to B. F. Heiney, for the consideration of $10,500. B. F. Heiney assumed the payment of the $5,000 mortgage, and exe
The evidence shows that the homestead was worth $2,800. The homestead was not liable for the unsecured debts of George W. Heiney, and conveyance of it could not be set aside as in fraud of the right of ci-editors. Delashmut v. Trau, 44 Iowa, 613; Officer & Pusey v. Evanc, 48 Id., 557; Griffin v. Sheley, 55 Id., 513; Baldwin v. O'Laughlin (Minn.), 11 N. W. Rep., 77.
Deducting the value of the homestead and the amount of the incumbrance upon the pi’operty, there is left but $2,200, which is almost $700 less than the debt due Eli Heiney. Eli Heiney had a right, for the purpose of securing payment of the debt due him, to accept a conveyance from Geo. "W. Heiney, even although he knew that Geoi’ge W. Heiney was in debted to other creditors and was prompted by a fraudulent motive in making the conveyance; and the conveyance could not be set aside, merely by showing such knowledge, unless the grantee also participated in the fraud. See Chase v. Walters, 28 Iowa, 460, and cases cited in argument of the appellee.
Under the foregoing authorities the conveyance of the property, other than the homestead, was clearly valid, as it was of less valxxe than the incumbrance upon it, and the debt due to Eli Heiney.
Whatever may be the intent of a conveyance, it cannot be set aside as in fraud of creditox’S, xxnless it does, in fact, hinder or delay them in collecting their debts. Upon this sxibject in Baldwin v. O’Laughlin, supra, the following lan
As tbe conveyance to Eli Heiney was valid and entirely divested the title of George W. Heiney, it is unnecessary to inquire into the nature of the subsequent conveyances. The court erred in decreeing the conveyances to bo fraudulent.
Reversed.