95 Pa. 388 | Pa. | 1880
delivered the opinion of the court,
This was a judgment bond given by the defendant Henry to the legal plaintiff, Gill, for the payment of $8000, dated April 28th 1875. It was accompanied by a mortgage of same date and amount, which was recorded April 30th 1875. On June 1st .1875, Gill assigned the bond and mortgage to the plaintiff, Isaac Rankin, and handed him at the same- time a certificate of no defence signed by Henry. The assignment was made in consideration of $5795, which Gill owed Rankin on May 1st 1875, for moneys which Rankin' had at various times left with Gill for investment. As between Gill and Rankin, therefore, a good consideration passed for the transfer of these securities. On January 26th 1876, Gill, without the knowledge of Rankin, entered satisfaction of the mortgage, and in the fall of 1877 he fled the country in consequence of discreditable transactions in which he was engaged. When Rankin discovered that Gill had satisfied the mortgage of record he entered judgment on the bond in suit on December 10th 1877. Subsequently, on the application of the defendant, the judgment was opened, and the case was tried before a jury who rendered a verdict for the defendant under instructions from the court, which are now brought before us for review by various assignments of error.
The actual defence set up was that the bond was given without any consideration. The reason why it was given appears in the testimony of the defendant himself. He said on the trial, “ I got into trouble with the bank, the Allegheny Trust Company. I came over to Mr. Gill. They were talking of suing, or had. They were commencing to sue, and I didn’t want to have any trouble incurred, and I came over to Mr. Gill and asked him what I should do, and he said he could fix it for me, and I asked him howr. He said that he could draw up a bond and mortgage, and it could lay in his office, which would keep me out of court; I would have no trouble. I told him I didn’t want to avoid payment of the assessments as they became due. I did not want to be sued. I was afraid of being sued by creditors. When I came to him I knew I was liable for all the debts of that concern. It was with that view I made that mortgage; he said it would keep the property safe for me — keep the property safely covered up.” This language is so extremely plain that there is no difficulty in understanding it. It proves beyond all question that the bond and mortgage in question were given for the express purpose of hindering, delaying and defrauding the creditors of Alexander Henry, the defendant. No amount of refinement or speculation can clothe ■it with any other meaning. The plain, blunt truth of the case is,
Q. “Mr. Henry, I wish you would state what, if anything, occurred — what, if anything, was said between Mr. Gill and yourself, as to where this bond and mortgage was to be kept and for whom?”
A. “It was to be kept in Ms office. He said he would leave it in the safe. It was to be kept in the office.”
Q. By the court: “ For whom ?”
A. “There was nothing said about whom, your Honor.”
He would not even say it was to be kept for himself. There is not a word in this testimony about any agreement that the papers should not be entered of record, nor even that they should not be collected. There is nothing in it but a declaration of Gill’s that the papers should be lodged and kept in his safe, a very suitable precaution for their preservation. It was a mere matter of custody of the corpus of the instruments. As we have before said wre regard this testimony as entirely insufficient to prove an agreement that the bond and mortgage were not to be entered of record or collected, and that the case would have to be reversed on that ground. But even if such an agreement had been made and were fully proved, we could not permit it to have any efficacy for another reason. The very utmost effect that could be given to such an arrangement would be to regard it as a parol agreement
In the case of Williams v. Williams, 10 Casey 312, a scire facias was brought upon a mortgage by the mortgagee against the administrators of the mortgagor. On the trial the defence offered to be proved was thab the .mortgage was without consideration, and was taken by the plaintiff from his two sons, soon after their attaining the age of twenty-one years, with the understanding that it should not be collected unless they failed in business. Speaking of this defence, this court said: “If the transaction were covinous, and the intent was to cover the property from creditors, 'in case of embarrassment of either party to i-t, neither one nor the other could set up the fraud as between themselves to defeat the other of any claim under it. The mortgage would be good as between them; it would be void only a.s against the interests intended to be defrauded.”
In Blystone v. Blystone, 1 P. F. Smith 373, which was, as this is, the case of a judgment given by confession and opened to be tried on the merits, and the defence was that it was given to defraud creditors, this court, Thompson, J., said: “If parties concoct a scheme to defraud others, and resort to a judgment to effect their
But it is useless to multiply citations. The same principles will be found in Sherk v. Endres, 3 W. & S. 255; Evans v. Dravo, 12 Harris 62; Hendrickson v. Evans, 1 Casey 441, and many other cases. They all proceed upon the idea that the defendant cannot give in evidence his own fraud in defence against his own act, whether it be an absolute deed or a mortgage or a confession of judgment, and no matter how it may be mingled with other arrangements or agreements between the parties. Eor these reasons we are- of opinion that the learned judge of the court below was in error in his general charge and in his answers to points, complained of in the several assignments of error.
Judgment reversed, and a venire facias de novo awarded.