241 Pa. 124 | Pa. | 1913
Opinion by
Thomas B. Brown was insolvent on April 1, 1911, when he conveyed the property in controversy to Edwin A. Pugh, one of the appellants. The conveyance was for the purpose of defrauding creditors, and this Pugh knew. Brown could not have had it set aside, for neither the law nor equity “will extricate a rogue from his own toils.” But he died insolvent, and what he could not have done in his lifetime his administrator has undertaken to do, for the benefit of his creditors, for as to them the conveyance is admittedly void. What they might have done in Brown’s lifetime, or might do now, to bring the property within their grasp is not the question raised on this appeal. The narrow question for determination is the right of Brown’s administrator to institute this proceeding for the benefit of his creditors.
While it is conceded by counsel for appellants that Brown’s conveyance is open to attack by his creditors, it is contended that, as he could not have attacked it while he lived, his personal representative stands on no higher ground, and Williams v. Williams, 34 Pa. 312,
An administrator serves in a dual capacity. While he is the personal representative of the deceased, he acts at the same time as trustee for the latter’s creditors, “and in that capacity he is bound to protect their interest”: Buehler v. Gloninger, 2 Watts 226. In this respect he is unlike an assignee for the benefit of creditors, who stands in the shoes of the assignor, and, for the purpose of paying creditors, converts for him what passes by the deed of assignment. His rights rise no higher than those of his assignor, and, being but a volunteer, he has no right to impeach the validity of a gift or trans
The general rule as to the right of the appellee to file this bill is thus laid down in Schouler, Ex’rs, 220: “Any gift, assignment, conveyance, or transfer of property within the statute 13 Eliz. c. 5, and analogous legislation, is void against creditors, and consequently it becomes the duty of a personal representative to procure the property by instituting, on their behalf, appropriate proceedings, considering the means of litigation at his disposal, and the proof obtainable.......Generally speaking, property which has been assigned or conveyed by the deceased, after the manner of a gift, confers a title upon the donee or grantee, subject to the demands of prior existing creditors of the estate. The executor or administrator, representing these and other interests, against the express or implied wishes of the deceased himself, if need be, may procure all assets suitable for discharging demands of this character.......The personal representative’s right and duty to have a fraudulent transfer set aside may extend to proceedings by bill in equity to reach real estate thus fraudulently conveyed, so far, at least, as the interests of creditors may require real property to be reached for the satisfaction of debts.” In some jurisdictions this rule is followed; in others it is not. But it is to be regarded as obtaining with us, and the decree is, therefore, affirmed at appellants’ costs.