60 Mo. 454 | Mo. | 1875
delivered the opinion of the court.
By the petition in this case, it is stated that in the year 1862, Alfred Jones was indebted to each of the plaintiffs as well as others, in various sums of money, amounting in the aggregate to about two thousand dollars, for which said several sums he executed to the respective parties his several promissory notes ; that in the latter part of the year 1863, suits were brought on said notes and judgments recovered thereon in the Lafayette Circuit Court, in the month of May, 1864; that after the rendition of said judgments, executions were duly issued thereon and delivered to the sheriff of Lafayette county, by virtue of which., said sheriff levied upon and seized, with other property, the following lands situate in said county, as the property of said Alfred Jones, to-wit: the west half of the south west quarter of section twenty-five, in township fifty-one of range twenty-seven, except twelve acres taken off the east ■side thereof; also twelve acres of'the west half of the south west quarter of said section; also twenty-eight acres off the
The petition alleges that on the 23rd day of July, 1863, the said Alfred Jones, with a view to defraud, hinder and delay plaintiffs and other creditors of said Jones, by his deed of that date, commonly called a deed of trust, conveyed or professed to convey to the defendant, Isaac M. McG-irk, as trustee, said tracts of land, together with a large quantity of personal property, for the pretended purpose of securing the payment of certain debts or pretended debts therein stated to be due from said Alfred Jones to various persons therein named, to-wit: to Isham and Elizabeth Martin the sum of $850, with interest; to Thomas J. Jones the sum of $5,350.00, by virtue of a note alleged to be dated the 5th day of October, 1857; to Washington Talbott the sum of $715 ; to one-Rucker the sum of $200and to one-Russell the sum of $100; that said deed of trust was duly recorded and was executed, made and contrived by said Alfred Jones, to defraud, hinder and delay plaintiffs and other creditors of said Alfred Joños in the collection of their debts against said Alfred Jones, and to cover up his property from said creditors ; that the intent to defraud was contrived by including, in said deed of trust, some real debts of said Jones, with other pretended and fictitious demands against him, and thus to incumber said land and property with some valid debts of an inconsiderable amount compared with the whole.of the indebtedness named in the deed, intending at th.e time to pay the holders of said valid debts and get the same under the control of himself and family, and keep the same, together with said fictitious debts, as apparent liens to cover said property so as to hinder and delay his real creditors, and thereby secnre the use and benefit of said property to himself without the payment of his
It is further charged by the petition, that by the said deed of trust and other conveyances made by said Alfred Jones, about the same time, all the property of the said Alfred Jones subject to execution under the laws of this State, was conveyed away and covered up from plaintiffs and other creditors, leaving nothing in his name to satisfy the same or any
It is therefore prayed, that if there are any valid subsisting liens, upon said lands, by virtue of said deed of trust, plaintiffs may be permitted to redeem said land by the payment of such debts, and that said deed, as to other fictitious creditors named therein, may be declared to be fraudulent and void, and that the same be canceled so far as the rights of plaintiffs are concerned, etc.
The plaintiffs, before the filing of answers by defendants, dismissed their suit-as to defendants Talbott, Rucker and Russell.
The suit was removed to Ray Circuit Court for hearing, by change of venue. At the March term of the Ray Circuit Court, for the year 1872, the defendants, Alfred Jones, Thomas J. Jones and McGirk, each filed a separate answer to the petition. The defendant, Alfred Jones, in his answer admitted his indebtedness to plaintiffs and others, asset forth in the petition, and also admitted the execution of the deed of trust to McGirk, as charged, but averred that said deed of trust was executed for the honest purpose of securing the just debts of said defendant, as therein named. The said answer then, after denying material allegations of the petition sets up, as a defense to plaintiffs’ action, that the plaintiffs associated themselves together at the time of the sale of the lands by the sheriff, as charged by plaintiffs, with the intention that one of their number should bid for said land for all of them, thereby to depress competition at said sale and thus to procure said land at a mere nominal sum, and that they did thus bid for said land, and that the bid so made by them was the only bid made for said land a-t.said sale; that no opposing bid having been made the land was sold and conveyed to said plaintiffs, who thereby received no title to -said land, etc.
Defendant, McGirk, denied all fraud on his part, or knowledge of fraud in others.
Replications were filed, putting in issue the affirmative allegations of the answer.
At the March term of the Ray Circuit Court for the year 1873, a trial was had and a decree rendered, in favor of the plaintiffs, in conformity to the prayer of the petition.
The defendants, in due time, filed motions for a rehearing and in arrest of the judgment, which, being severally heard and overruled by the court, the defendants excepted and have brought the case to this court by appeal.
There are several questions raised in this court for consid eration, growing out of the action of the Circuit Court upon the trial of the case.
No question is made, in this court, as to the regularity of the judgments, executions, levy and sale of the land in controversy, by the sheriff, to plaintiffs, and of the deed madp to plaintiffs by the sheriff, for the same; the only objection made
The evidence to sustain this objection was to the effect that there were some four or five judgments and executions in the hands of the sheriff, which were in favor of several plaintiffs in this suit in different amounts, amounting in the aggregate, to between fifteen hundred and two thousand dollars. The' judgments upon which these executions had been issued had all been rendered at the same term of the Lafayette Circuit Court, and therefore the lien thereof upon the land in controversy were of equal dignity. .The executions were all levied on the land in controversy, together with other property, all of which had been conveyed away or incumbered to its full value, by Alfred Jones, the defendant in said executions, and it appears to have been believed by plaintiffs, that the conveyance of said land and the incumbrances placed thereon had been so placed on said land to hinder and delay creditors and that the same might be set aside by a suit at law, but that, neither one of the plaintiffs was willing to purchase the land at the sheriff’s sale and litigate the questions as to the legality of the incumbrances thereon for the amount of his individual debt; wherefore, the plaintiffs all agreed that one of their number should bid for the land, for the joint benefit of all, and that they would continue to bid on said property until it was run up to the aggregate amount of all of the executions in the sheriff’s hands, if the same could not be purchased for a less sum, and that the land, when so purchased, should be the joint property of all of the plaintiffs. It is further shown that, in pursuance of this agreement, the land was purchased at the sheriff’s sale by the plaintiffs. It is insisted by the defendants that this purchase was illegal and void, and could confer no title on the plaintiffs.
It does not appear from the evidence that it was any part of the intention of the plaintiffs to depress or lessen the price
In the case of Wooten vs. Hinkle, (20 Mo., 290) it is stated “ that a combination of interests to purchase property at sheriff’s sale, will be valid or not according to the views with which it is made. ■ If it is effected with a design to depress the price, it will be void; but there may be circumstances which will render.a combination at a sale lawful, when it is entered into with no improper view.” This, it is said by Judge Scott, is not inconsistent with the decision in that case.
In the case of Stewart vs. Severance (43 Mo., 334), Judge Wagner, when discussing this same subject, remarks, that the defendants in that case, “for the purpose of indemnity, and saving themselves harmless from liability, had the unquestioned right to agree among themselves that they would bid an amount sufficient for that purpose; and if they were guilty of no improper conduct, and resorted to no trick or artifice calculated to depress the price or deter bidders, the sale should stand, notwithstanding it may have inured greatly to their benefit. To make the transaction fraudulent, it should be shown that there was a conspiracy to depress the bidding.” The quotation just set forth would seem to dispose of the question now being considered in this ease ; there was nothing unlawful in the arrangement -and purchase made by plaintiffs, there was no attempt or purpose to depress or discourage bidding, and the sale was good and valid.
The defendant saved several exceptions to the rulings of the court in the admission of evidence objected to by the defendants, and which rulings of the court, it is insisted, were erroneous; but it will be more convenient to consider said objections in connection with the discussion of the merits of the case as developed by the evidencé.
It further appears, that on the 23d day of July, 1863, the same day on which said deed executed to Duggins was acknowledged, said Alfred Jones and-wife executed a deed commonly called a deed of trust, by which they conveyed to one McGirk the land named in the petition, together with the following described personal property, to-wit: i{All my household and kitchen furniture now in and about the dwelling house and kitchen on said- lands, now occupied by me, consisting of beds, bedding, tables, chairs, sofas, bureaus, car
The plaintiffs offered and read in evidence on the trial, a petition in bankruptcy filed in the United States Bankrupt Court by said Alfred Jones in December, 1868, together with tlte schedules filed therewith and proceedings thereon, by which it appeared that said Alfred Jones was insolvent, having no property at the time of filing said petition. This evidence was objected to by the defendants, because it was irrelevant, not tending to prove any issue in the cause. It was also objected to said evidence that it-could only be construed to be the admissions of Alfred Jones made some six or eight years after the right of Thomas J. Jones had accrued, and hence was wholly incompetent as evidence as against said defendant, Thomas J. Jones. The-court overruled the said objections, and admitted said evidence, to which exceptions were saved.
James lies, a-witness for the plaintiff, testified that he was acquainted with Alfred Jones, and had a conversation with him in the latter part of the year 1863, or the forepart of the year 1864, at the house of said Jones ; that in said conversation Jones stated that he was sued by a lot of men, Crittenden, the Bank and others ; that he also said he had a bad set of children; that he had sent money to California to bring his son, Thomas J. Jones, home; that he wished Thomas had died before he got home; that he did not know.whom they “took after,” as they did not take, after him or their mother; that he had them all 'to support; that he wished he had his property in his pocket, he thought he was smart enough to get it there, and then they might “whistle.”
The defendant objected to the foregoing evidence on the grounds that the admissions or statements of Alfred Jones,
The plaintiffs also proved similar statements to have been made by said Alfred Jones, in reference to his having sent money to his son Thomas when in California, to bring him home, some of which statements were made before Thomas returned from California, in 1854 or 1855, and some' were made after his return from California, and after the note to Thomas J. Jones purports to have been executed.
The same objections were made to this evidence that were made to the evidence of lies, and were overruled by the court and exceptions taken. • The witnesses last referred to, each testified that they had been well acquainted with Alfred Jones and Thomas J. Jones for some twenty or thirty years; that before Thomas Jones went'to California he resided with his father; had just become a grown man ; had no property that witness knew of; and that after he returned from California he had no visible property, except a horse ; and that he had made a crop of hemp one season that he seemed to have no regular business, but had done some work for the Shelbys. Part of these witnesses had been with Thomas J, Jones a portion of the time during which he was in California, and thought that he had no property and had made no money while they were with him; at least that he had no means they knew of.
"William H. Day a witness, who was a cousin of Thomas J. Jones, stated that he had been with Jones in California for nearly one year after he went there in 1849 ; that he made no money to witness’ knowledge while he remained with him in California; that witness was intimate with said Jones after his return from California ; that witness did not know of any property or money that belonged to said Thomas, before his leaving for the South in 1857; that he came home from Cali
The witness, Day, also testified that Alfred Jones, about the month of May, 1864, asked him if he would be the trustee of his wife in the purchase of the'debts named in the deed of trust to McGirk, except the debt to Thomas J. Jones; that ’witness consented to act as trustee for his aunt, the wife of Alfred ; that the next day Mrs. Jones furnished him money to purchase said debts ; that he purchased said debts and had them all assigned to himself, as trustee, for the use and benefit of May Jones, the wife of Alfred Jones. The evidence of this witness, as well as that of other witnesses, strongly tended to prove that the money with which these debts'were purchased was furnished bjr Alfred Jones, and was really his money. The evidence further shows, that in 1867 or 1868 Mrs. Jones died, and that Thomas J. Jones afterwards purchased, or professed to have purchased, the interest of his brother and sister in these debts, which had been assigned to Day, in trust for Mrs. Jones, and that at the time-of the commencement of this suit, Thomas J. Jones claimed to own all of the debts named or provided for in said deed of trust.
The defendants introduced a number of witnesses in support of their defense. Joseph Shelby testified on the part of the defendants, that he was well acquainted with the defendants, Alfred and Thomas J. Jones; that in the years 1856 and 1857 Thomas J. Jones worked part of the time for Thomas Shelby, and part of the time for witness (this was after the return-of Jones from California); that he worked for Thomas Shelby for some time at $40 per month, a'ud then worked for witness at the rate of $600 per year; that Thomas J. Jones
Thomas J. Jones testified on his own behalf, that he had worked for himself, by the permission of his father, from the time that he was seventeen years old; that he had cultivated aud raised hemp on his father’s lands, his father’s negroes sometimes assisting him to cultivate it; that in 1849, when he went to California, he was about twenty-one years old, and had two thousand'dollars; that his father gave him-a wagon and outfit to go to California; that he took his two thousand dollars in money with him to California; that he did not spend it while there; that he remained in California for about five years, and that some part of the time he made nothing, and during other portions of the time he made ■money; that when he returned from California he brought home with him, including the most of the two thousand dollars taken to California with him, the sum of nine thousand, five hundred dollars ; that a portion of this’sum was brought over to New Orleans in gold and gold-dust, where he exchanged it for paper money and brought it home; that after he got home he deposited part of his money with a merchant in Lexington, who is now dead, and kept a portion of it himself; that after he had so returned home he worked for some time on his father’s farm, -and afterwards worked for the Shelbys; that he loaned Joseph Shelby about a thousand dollars while with him, and when he settled with Shelby in 1857, he paid him $1600 ; that he had also loaned a man in Saline county, a brother of his mother, $2,000 ; that in the fall of 1857, after he settled .with Shelby, his father, having had his house burned down, and being engaged in erecting
Alfred Jones corroborates the evidence of Thomas J. Jones, in reference to his having large sums of money after his return, and as to his having about two thousand dollars when he went to California, and as to the loan of the sum of $5,350 to him in the Fall of 1857, to pay for the erection of his house. He also states that he was not at that time embarrassed with debts, but that he did not have the money to spare from his business to pay for the erection of his house, and hence borrowed the same from his son, Thomas J. He also testifies that the deed of
Mrs. Duggins, the daughter of Alfred Jones, and William. Duggins, her husband, were examined as witnesses for defendant, each of whom testified that after the house of Alfred, Jones was burned, in 1855 or 1856, he and his family lived on. his farm — the farm now in controversy — in a negro' cabin on. said farm, until the new brick house was erected in 1857 or 1858; that witnesses resided part of the time with the family of Alfred Jones in said negro cabin ; that they were preseut in said cabin in the Fall of 1857, when Alfred Jones borrowed over five thousand dollars of his son, Thomas J. Jones; that the money was said to be borrowed to pay for the erection of the new house; that they were present when, the money was counted; did not count the money themselves, but heard and saw Alfred and Thomas Jones counting the money; that it seemed to be a large quantity of paper money, and that according to the count made in their presence, the money amounted to over five thousand dollars, for which Alfred Jones gave Thomas J. Jones his note at the time. Wit. nesses did not read the note, but saw Alfred Jones write it and heard it read, and saw it delivered to Thomas J. Jones. These witnesses corroborated the evidence of Alfred Jones
Henry Jones, a son of Alfred Jones, also testified as to the money carried by his mother, and as to the purchase by her of the notes named in the deed of trust.
The plaintiffs introduced a witness in rebuttal, whose evidence tended to prove that in 1864 or 1865, Mrs. Jones seemed to be destitute of means of any kind whatever, and was unable to pay a small bill for medical attention to her own person.
Several witnesses were introduced by plaintiff, who testified that the character of Alfred Jones for truth, was not good. After which, defendants introduced about an equal number of witnesses who testified that the character of Alfred Jones, for truth, was good.
At the close of the evidence, the attorneys for the defendants moved the court to exclude from the evidence in the canse all and each of the admissions or statements of Alfred Jones given in evidence upon the trial, and which were objected to at the time, as to the defendant, Thomas J. Jones, in the consideration of the cause. The court overruled said objection and the defendants excepted.
The first question to be considered by this court in the further investigation of this case is, whether the evidence adduced on the part of the plaintiffs, independent of the admissions and statements of Alfred Jones, was or is sufficient to show such a conspiracy or combination, between Alfred Jones and Thomas J. Jones, to hinder and defraud the creditors of Alfred Jones, as to make admissions and statements of Alfred Jones, made either before or subsequent to the time of the execution of the note and deed of trust to Thomas J. Jones proper evidence against him.
The general rule certainly is, that the declarations of a grantor, made after the execution of his deed cannot be used to defeat it. There are, however, several exceptions to this general rule. One exception is, where several persons have em
The admissions given in evidence in this case made by Alfred Jones were not made in reference to, or in connection with the possession of personal property which had been sold so as to be explanatory of said possession and thus constitute a part of the res gestee; but if said admissions could be proper evidence as against Thomas J. Jones, it must be on the ground that Alfred and Thomas Jones had entered into a common design to hinder and defraud the creditors of Alfred. This last ground is the one upon which it is insisted by the plaintiffs that the evidence is admissible. Nor does the evidence offered by the plaintiffs, independent of said statements justify the court in finding that any such common purpose or combination existed between the parties, and that the admissions and statements were made while engaged in the prosecution of said common object. If we take the theory of the plaintiffs, that the note given to Thomas J. Jones was a sham, and was executed without any consideration at the time of the execution of the deed of trust in July, 1863, and antedated so as to appear to have been executed in the Fall of 1857, then all of the evidence shows that at the time of the execution of the mortgage, Thomas' J. Jones was not in the State of Missouri, and never returned to the State of Missouri until the year 1865. By this it will appear that no combination could have been entered into between Alfred and Thomas J. Jones before the year
It is, however, insisted, that Thomas J. Jones, after he returned to Missouri in the year 1865, assented to a design before made by Alfred Jones to delay and defraud his creditors, and joined with him in said design, and has been assisting him since the year of 1865, in carrying out and accomplishing such design, and that this entering into said design in 1865 will relate back to the time when such design was first formed by Alfred Jones, and make his statements and admissions made from the inception of said design, evidence against said Thomas J. Jones. I cannot exactly see how such a position is to be maintained. If Thomas Jones agreed to a fraud perpetrated for his benefit in 1863, in the year 1865, I cannot see how it wonld make the statements of Alfred Jones made long before said time, and of which he had no knowledge, evidence against him. If he assented to, and joined the fraud after its perpetration had been commenced, he would be bound by the whole consequences resulting from the fraud ; but that wonld hardly make statements made by the party at a time when he even had no knowledge of the transaction evidence against him. Put whether this would be so or not could make no difference unless the evidence, independent of said admissions, is sufficient to prove this common purpose or design.
The evidence of the plaintiff to prove this design to defraud oh the part of Thomas J. Jones, aside from the statements of Alfred Jones, consists of the testimony of a number
Joseph Shelby swears that Thomas J. Jones received $1,600 from him shortly before the money purports to have been loaned to Alfred Jones. We would not be authorized to hold that all of these witnesses are guilty of perjury simply from the fact that the neighbors of Thomas J. Jones did not know that he had money, and because his conduct in reference to his money was rather inconsistent with the usual conduct of young men similarly situated. I do not think that, to take all of the evidence together, independent of the statements and admissions of Alfred Jones, it is sufficient to authorize the court to.find, in reference to the note executed to Thomas J. Jones, that there was a combination between the father and the son to defraud the creditors of Alfred Jones such as would make the statements of the one in reference thereto, evidence against the other.
The admissions of the petition in bankruptcy filed by Alfred Jones, in evidence, are also objected to as being erroneous so far as Thomas J. Jones was concerned. This petition was filed some five or six years after the execution of the deed of trust to McGrirk, and long after plaintiffs had purchased the land in controversy at execution sale and after the commencement of this suit so that we cannot see how anything in the petition and proceedings in bankruptcy filed by Alfred Jones
If the decree made in this case had only declared that the debts named in the deed of trust which had been transferred to witness Day in trust for Mrs. Jones, had been satisfied by the money of Alfred Jones and transferred to Mrs. Jones, in. order to keep up an apparent incumbrance on the land in controversy after said debts had been satisfied and paid, and then proceeded to cancel said debts and declare them satisfied so far as plaintiffs were concerned, we would not feel authorized to reverse the judgment in the case. The evidence in the case was sufficient to show that Alfred Jones was attempting to get his property out of his hands for the purpose of hindering and delaying plaintiffs in the collection of their debts against him. The fact that he conveyed all of his real and personal jn'operty including all of the stock and farming utensils belonging to him, even his plows and double trees and siugle trees, and all of his household and kitchen furniture “except such as was exempt from sale under an execution ” by the laws of this State, when taken in connection with his statements to witness lies that he was smart enough to get his money in his pocket and keep it, and the other facts in evidence in this case were sufficient to authorize the court in finding the fraudulent intent on the part of Alfred Jones. And the evidence strongly tended to prove that the debts assigned to Day, as trustee for Mrs. Jones, were paid with the money of Alfred Jones, and Thomas J. Jones only claimed to have purchased the interest of his brother and sister in these debts, and that he holds the balance of the interest in said debts as the heir and representative of his mother, and that he, as to said part, had paid no value therefor, and the evidence showing that the negroes sold, from which his mother professed to have gotten the money to purchase these debts, were
We do not think that the sale by the .trustee of the property in controversy to Thomas J. Jones, during pendency of this suit, could in any way affect the rights of the parties. Tlie exclusion of the trustee’s deed to Thomas J. Jones by the court when it was offered in evidence, could not therefore have injured the said defendant.
Judge Hough did not sit in this ease. The other judges concurring the judgment will be reversed and the case remanded.