55 Wis. 181 | Wis. | 1882
After a careful consideration of the evidence given upon the trial of this action, we are constrained to say that the findings of fact by the learned circuit judge are sustained by the evidence, and we see nothing in the record which would justify us in setting aside such findings, or any one of them. The finding as to the value of the real estate conveyed is, perhaps, the most questionable of them all, and yet that is certainly sustained by the evidence given on the trial; and if the fraudulent character of the transaction were based solely upon it, it would probably be sustained by this court under the rule so frequently stated, that this court will not set aside a finding of fact unless it be against the clear preponderance of the evidence. But, from an examination of the whole case, it is clear that the question of the value of the real estate conveyed, as compared with the consideration claimed to have been paid therefor, was not the only nor the most satisfactory reason for declaring the transaction fraudulent and void as to the creditors of Matthews not provided for by the conveyances. The evidence clearly establishes the
These pertinent facts, which are undisputed, and which have in themselves a strong tendency to establish a fraudulent intent as to the creditors not provided for, are supplemented by a mass of other testimony, more or less satisfactory, all tending to establish the unfairness of the whole transaction as to the unprotected creditors of Matthews, and the intent to defraud or hinder and delay them in the collection •of their demands against Matthews. Upon a consideration of all the evidence, we have no hesitation in saying that the findings of fact are fully sustained, and must stand as the •basis of the judgment which should be rendered in the action. 'The only difficulty we have with the case is in the form of ■the judgment rendered. Was the plaintiff entitled to a personal judgment against the appellant for the amount of his claim against the defendant Matthews not exceeding $1,500? 'Thb learned counsel for the appellant very earnestly contends that no such judgment should have been entered. The judgment is no doubt an unusual one in a creditor’s action, ■and yet there can be no good reason assigned why it ought
The reason and justice of this rule are apparent when we consider the effect of any different rule upon the rights of the creditors. If the fraudulent grantee can be protected for the amount actually paid by him at the time of the fraudulent transfer, then this would happen: The fraudulent debtor could make a sale with intent to avoid the payment of his debts, take the money and leave the country, and the purchaser have knowledge that he intended to do so, and yet be protected for the money so paid and appropriated. A rule which would lead to such results cannot be tolerated by courts. The rule as above stated has been recognized and
If the fraudulent grantee in possession of the property of the debtor cannot be protected for the money or other consideration he may have given for the transfer, as against the creditors of such debtor, it would seem to follow as a necessary consequence that such grantee cannot be protected in the possession of the proceeds of such property received by him on a sale thereof. The property in the hands of the fraudulent purchaser is held by him in trust for the creditors of his fraudulent vendor, and when the property is converted into money the money is impressed with the same trust. The original conveyance being void as to creditors, no title as to them ever passed to the grantee; and if he sells it and receives the money, he must hold the money for the benefit of the creditors. In equity such money in the hands of the fraudulent grantee is held for the benefit of the creditors; and, although they may not be able to maintain an action at law for money had and received for their use, because they were never the owners of or had the title to the property which has been converted into such money, yet a court of equity, having all the parties interested before it, may make such order as to the application thereof as would be just.
If the court in a proper case would have the power to order the fraudulent grantee to pay money received by him in satisfaction of the debt of a creditor, then the fact that it directed a personal judgment to be rendered against him for the money so received, and that the amount be collected on execution, would be a mere matter of form, which does not prejudice his rights, and of which he cannot complain.
In the case at bar there is an abundance of evidence showing that Hillman received from the sales of the property, which was found to have been fraudulently conveyed and mort.gaged to him, a sum far exceeding the sum of $1,500, the • amount which the court charged him with in the judgment. 'He admits that he sold one of the parcels of real estate for the sum of $500, and the barrel stuff for the sum of $494; •and it also appears pretty clearly that he received the whole ■of the $2,000 note of the debtor, Matthews, which was
. Ve think the judgment of the circuit court is well sustained by the evidence and should be affirmed.
By the Gov/rt.— The judgment of the circuit court is ■affirmed.