116 Ky. 422 | Ky. Ct. App. | 1903
Opinion of the court by
Affirming.
L. R. Porter, who was at the time insolvent, conveyed on February 10, 1901, to appellant Downer, a house and lot in consideration of a pre-existing debt. On March 4, 1901, Porter assigned to appellee for the benefit of his creditors, and he subsequently brought this suit on October 22, 1901, to have the property brought into the trust fund for the equal payment of all the creditors of Porter under section S4, Kentucky Statutes, 1S99: “If the assignor before making the deed shall have made a preferential or fraudulent transfer, conveyance or gift of any of his property or a fraudulent purchase of any property in the name of another, the property so fraudulently transferred, conveyed or purchased shall vest in the assignee, and it shall be Ms duty to institute such proceedings as may be necessary to recover the. property so conveyed or disposed of, and to this end he shall have the remedies which the creditors or any of thorn might exercise. If the assignee upon demand shall refuse to institute such proceedings, any creditor may do so, and property so recovered shall become a part of the estate, and be distributed as other assets.” Section 1910, Kentucky Statutes, 1899, commonly known as the “Act of 1856,” further provides that every sale made by a debtor in contemplation of insolvency, and with the design to prefer one or
At the time the conveyance was made the house was rented out, and the tenant attorned to appellant, and thereafter paid her the rent; but there was no visible change of possession, and the deed was not recorded. The delivery of the property, within the meaning of the statute defining the time within which tlfe action must be brought, means
Sims & Grid'er were Porter’s attorneys, and advised him not to make the conveyance. He, however, made it, contrary to their advice. After the assignment was made, they were employed by the assignee, but did not inform him of the deed to appellant, as they had acquired knowledge of this deed from Porter while he was their client. It is urged that the assignee must be charged with the knowledge of his attorneys as to the existence of the deed. This would be true' if Sims & Grider had learned of the deed as his attorneys, but he is not chargeable with knowledge thereof which they acquired as the attorneys of Porter, and before their employment by him. An attorney is not required to disclose to one client the secrets' of another intrusted to him professionally by the other client in the transaction of his business. Were the rule otherwise, a man could not safely advise with his attorneys, because he could not foresee by Whom they might be thereafter employed, or what use might be made of the facts communicated to them. On the questions of fact involved we can not, under the evidence, disturb the chancellor’s conclusion.
Judgment affirmed.