delivered the opinion of the court.
The subject of controversy in this case is an ante-nuptial settlement made by John IT. "Wickham upon Maria F. Kersey and her children on the 23d of February, 1868. At that time Mr. Wickham was indebted to a very large amount, far beyond his means of payment, and his object in making the settlement, it is claimed, was to defraud his creditors. It Mr. Wickham was alone concerned, there would be little difficulty in declaring the settlement void as to his creditors; but he is not the only one; the parties chiefly interested are the wife and children, for whose benefit the settlement was professedly made. The first section of chapter 114, Code of 1873, which is but a continuation of an old statute, after declaring that conveyances made with intent to hinder, delay, or defraud creditors, shall be void, “further declares that this section shall not affect the title of a purchaser for valuable consideration, unless it appears that he has notice of the fraudulent intent of his immediate
If it be conceded, therefore, that Mr. 'Wickham’s intention in making the settlement was to avoid payment of his debts, the question still arises, Did Maria F. Kersey (now Mrs. Wickham) have notice of that intention? Upon a very careful examination of this record, I think that question must be answered in the negative, or perhaps, to speak more accurately, the evidence is insufficient to establish the notice. It must be remembered that in cases like the present, the courts cannot act upon mere suspicion or presumption. Fraud must be proved— proved by clear and satisfactory testimony. This is the well established rule, universally recognized by the courts, and scarcely needs a citation of authority to support it.
There is no evidence, literally none, to show that Mrs. Wickham, at the time of the settlement, was apprised that Mr. Wickham was in embarrassed circumstances, or even that he was indebted to any one. A witness was introduced who stated that he advised Mr. Wickham to go into bankruptcy, and the latter replied he could come through without it. It is not proved that Mrs. Wickham heard this conversation, or if she did that she understood its purport. And this is the only evidence to establish the notice, unless we are to presume from the intimacy of the parties that Mr. Wickham informed her of his indebtedness, or that his purpose in making the settle
Mr. 'Wickham’s closest neighbors considered him a wealthy man, the wealthiest in the community. Some of them thought him a money-lender. lie was the owner of two valuable farms in Hanover, one containing 700 or 800 acres, and the other 1,800 acres, upon which he resided. It is very true they were subject h> encumbrances to a large amount, but there is not the lest reason to suppose that Mrs. 'Wickham knew it. The deed of settlement did not embrace all of Mr. Wick-ham’s estate, but certain specific property, consisting of bonds upon various persons and an interest in land in Missouri. If Mrs. Wickham believed, as the neighbors believed, that her intended husband was a man of large fortune—if she knew he owned the farms, without knowing of the encumbrances—she might well regard the settlement as just and reasonable, and without injury to any one. It is said by an eminent American author, that, although one American case seems to intimate that a mere knowledge of the insolvency of the intended husband by the intended wife would make a settlement by him on her valid as against her creditors, this appears to be contrary to the English doctrine, and perhaps it is contrary to the true doctrine everywhere. Perhaps a woman may lawfully give her hand in marriage for money which she knows the party cannot pay without withholding from them to whom he had, for a valuable.
Whether this he or not the true rule, it is certainly well established that the fact of the husband’s being indebted at the time, and that the woman knew him to ’ . _ _ be so, will not invalidate the transaction, in favor of creditors. 2 Lomax’s Digest, 434. If, therefore, it appeared in this case that Mrs. Wickham was aware at the time of her intended husband’s indebtedness, that would not of itself be sufficient to invalidate the settlement, unless she was aware of it to an extent to justify the belief of a design on his part to avoid the payment of his debts.
Assuming, then, that she acted bona fide, is the settlement valid against creditors? This inquiry involves several important propositions now to be considered.
In the first place, that marriage is a valuable consideration, sufficient to support a conveyance of property even against creditors, is firmly established by a long train of decisions, English and American. The wife in such case is deemed to be a purchaser of the property settled on her in consideration of the marriage, and she is entitled to hold it against all the world. Lord Coke gives a forcible illustration of the rule. It being the general doctrine that the word “heirs” is necessary in a deed to pass a fee, if (he says) “ a man had given land to a man with his daughter in frank marriage, generally a fee simple had passed without this word ‘ heirs,’ for there is no consideration so much respected in law as the consideration of marriage in respect of alliance and posterity.” 1 Bishop on the Law of Married Women, § 775. In Barrow v. Barrow, 2 Dickens R. 504, Lord Chancellor said “he never knew an instance where a settlement in consideration of marriage had been set aside, and he would not make a precedent.” In Campion v. Cotton, 17
Eo country in the world can, perhaps, boast of a purer judiciary than that from which we have derived our laws, institutions, and the most valued portions of our jurisprudence. It is not to be supposed that eminent judges there would lend the sanction of their names to mere family schemes in fraud of creditors upon such considerations as those suggested by the learned judge. The decisions respecting marriage and marriage contracts, I imagine, rest upon higher ground. Lord Robertson, a Scotch judge, in the case of Levett, Ferg. R. 385, 389,
It is upon some such considerations as these, I take it, and not those suggested in this case, the courts everywhere have based their decisions in respect of marriages and contracts in consideration of marriage. And accord
In Sterry v. Arden, 1 John. Ch. R., p. 260, 271, Chancellor Kent said: “The marriage was a valuable consideration which fixed the interest in the grantee against all the world, and as much as if she had then paid an adequate pecuniary consideration. It is the constant language of the books and of the courts, that a voluntary deed is made good by a subsequent marriage, and a marriage has always been held to be the highest consideration in law.” See Verplank v. Sterry, 12 John. R. 536; where this decision was affirmed. The cases of Smith v. Allen, 5 Allen. R. 454; Jones' Appeal, 62 Penn. St. R.
The Virginia cases are equally emphatic upon this subject, none perhaps more so than Huston's adm'r v. Cantril, 11 Leigh. 136, 155. It was there held that a voluntary conveyance made by a man greatly indebted to his daughter, is rendered good and available against creditors of the grantor upon the subsequent marriage of the daughter, who thereupon was to be regarded a purchaser by relation for a valuable consideration. Judge Carr, in speaking of the deeds made to the daughter, observed: “ Will it be said that, if at the date of the deeds (Clendenin) the father had sold bona fide and for a valuable consideration, every slave he had, Huston, the •creditor, could have disturbed such sale ? And what is a settlement of slaves or other property upon a child in consideration of marriage, but a sale for a valuable consideration ? Is not marriage the highest consideration, the most favored ? I have always seen it so laid down.” Upon this question there was no difference of opinion among the judges. Judge Standard did not concur with the majority, but his dissent was based upon other grounds. In Bentley v. Harris' adm'r,
After these emphatic avowals, it is, I think, too late to caution us how we follow the English cases. In the principles declared, the American courts have gone quite as far as those of England.
The learned counsel tell us, that marriage, however valuable as a consideration, cannot sustain a settlement
A man possessed of a small patrimony, in comtemplation of a marriage with a lady accustomed to the luxuries and refinements of life, may settle his entire estate upon her and the issue of the marriage. This might be very unjust to his creditors, and yet no more than a just and reasonable provision for her, such as she would have the right to expect, and her friends to require. What principle of law, what decision, except that of Mr. Justice Nott, pronounces such a settlement per se fraudulent ? In some cases the half of a man’s fortune would be an extravagant settlement; in others the whole would be very inadequate. It is very difficult to perceive any difference in principle between a settlement of one-half or two-thirds of a man’s fortune on his intended wife, to the injury of his creditors, and the settlement of the whole to the injury of his creditors only to a greater extent. It is simply a question of degree. And yet the hooks are full of cases in which settlements made by men in insolvent circumstances have been sustained. These considerations will serve to show that no such test can be relied on as that suggested by Mr. Justice Nott. Bishop, in his work on the Laws of Married Women, vol. 1, sec. 784, thus states the conclusion to which he has arrived upon a survey of all the authorities: “ If a man, wishing to enter
There is another difficulty attending this doctrine laid down in the South Carolina case. Suppose we sajT the settlement is fraudulent whenever it includes the whole of the husband’s estate, and yet we are satisfied the wife is innocent of all fraud, what is to be done with the settlement ? Is it to be set aside in toto ? Is she to be deprived of all benefit under the settlement because the husband has deceived her in attempting to defraud his creditors ? What is to become of the provision for children of the marriage ? The counsel, I think, will agree that the idea of annulling the settlement in toto in such case could not be entertained. If not, how is it to be reformed ? Adverting for a moment to this status (this relation of marriage), upon what basis is the calculation to be made by which the compensation is to be adjusted ?
I am not now speaking of the present case, but' of a principle or general rule to be adopted by the courts under which-an account may be taken to determine in dollars and cents the value of the wife, what ought to
^ie couuse^ f°r the appellants have argued further, that the principles governing an anti-nuptial contract have no just application to a case like the present, where the parties, long previous to the marriage, lived in illicit intercourse. I think the case of Coutts v. Greenhow is a complete answer to this objection. In that case it appeared that the husband made a marriage settlement of his whole estate, except what was covered by a mortgage, upon a woman with whom he had long lived in a state of fornication, and by whom he had several children. The conveyance was to the use of himself and the intended wife, and for their children. Upon a bill by the creditors of the husband, impeaching the settlement for fraud, Chancellor Taylor was of opinion that marriage is a good consideration where there is any personal inducement to it; but where there is not, it should not of itself be deemed a good consideration against creditors, and more especially where the parties lived in open violation of the laws, and to the evil example of the whole community. lie declared it would be monstrous to say that Coutts, who was really an old man, far beyond the prime of his life, after so many years spent in a state of fornication, should he allowed to avoid the payment of his debts by entering into a marriage contract with her. See Greenhow v. Coutts, 4 Hen. & Mun. 485. It will he seen that the groimds upon which the chancellor relied in that case are substantially, almost identically, the same as counsel urge in this case. Upon an appeal to this court the decision was unanimously reversed, as reported in
Judge Cabell said the chancellor, in declaring the settlement Void, must have gone on the idea that the cohabi
Judge Coalter said: “ They (the parents) were bound, as well by the ties of affection as those of morality and justice, not only to provide a comfortable support for the innocent offspring, but to raise them to that state in society in which the laws of the country, upon the marriage of the parents, places them, and, in this point of view”, he could not perceive the difference between the situation of these children and a child in England who is horn a week after marriage. The child is not, in rerum natura, a child of the marriage; yet he is so by the laws of the country, and would be a purchaser for a valuable consideration under a marriage setttlement.”
Judge Brooke said: “The children, though base born, are legitimated by the marriage of the parents, and the recognition of them as his own by the husband both before and after the marriage. Upon this view of the subject, I cannot perceive the accuracy of the reasoning
Judge Fleming took the same view, and Judge Roane, who heard the argument, hut was not present when the opinions were delivered, concurred with the other judges, as is shown by his approval of the decree entered in this court.
I have thus given extracts from the opinions of the judges, because they directly apply to one of the main .grounds involved in the present case. If that case be an authority, it is conclusive of this. The counsel for the appellants have felt this difficulty throughout. They have, therefore, not hesitated to attack Coutts and Green-how as not being a binding authority. One of the counsel maintains that the opinions just quoted are mere ■obiter dicta, because the deed of settlement was unassailable even as a voluntary deed. It is certainly a novel idea”that the decision of an appellate court, based upon a clear, distinct ground, and sustained by elaborate reasoning, is to be treated as an obiter dictum, because, in the opinion of counsel, the decision might have been placed upon some other ground more satisfactory. The learned judges who sat in that case saw, or thought they saw, a well-established principle or rule of law controlling their decision, and they did not hesitate to apply that principle as absolutely decisive without hunting for more questionable grounds of adjudication. ’Whether the deed of settlement would have been held valid as a voluntary deed, was a question barely considered. The creditor having
Much stress is laid upon the fact that the grantor in that case owed but one debt, which was provided for, and all idea of fraud on his part was disproved by the facts in the record. It is sufficient to say that in principle it makes but little difference whether there is one or a dozen debts. The one has equal claims to payment out of the debtor’s property as the dozen. The fact that there is but one is a mere circumstance to rebut the presumption of fraud. If in that case the bona fides of the husband was sufficient to protect a settlement of the entire estate, why is it that the bona fides of the intended wife will not have the same effect in the present case ? If the grantee acts with good faith, it is precisely the same as if both parties were actuated by honest motives.
In the language of Judge Cabell, in Coutts v. Greenhow, the wife and children were purchasers for a valuable considei’ation, and as such will hold the property settled on them, even against all creditors.
The counsel for the appellant insists further, that the settlement to be valid against creditors must have been an inducement to the marriage, which cannot he predicated of the settlement in this case, as it is certain that the woman was not induced to marry Mr. 'Wickham by any consideration of that sort. I might ask the learned
In Brown v. Carter, 5 Ves. R. 462, 878, Lord Alvanley said: “It does not appear here that it (the settlement) was regarded as the principal inducement, but it might have been so. The lady had a right, the children have a right, to have it considered that he had the estate which he appeared to have, and I should do gross injustice in taking away that-benefit; therefore, I am of opinion, that although it does not appear that the friends of the Avife did speculate upon this and take it into consideration, it must be presumed they did act upon it.” In Sterry v. Arden, 1 John. Ch. R. 260, the cases are considered by Chancellor Kent, and the doctrine laid down by Lord Alvanley fully approved. In Smith v. Allen, 5 Allen R.
In Greenhow v. Coutts, 4 Hen. & Mun. 485, Chancellor Taylor based his decision mainly “ upon the ground that the parties having lived in a state of illicit intercourse for years, it could not be presumed that the settlement was an inducement to the marriage.” That decision, as already stated, was reversed unanimously by this court, although there, as here, it was highly probable that the woman would have entered into the marriage on any terms the husband might have dictated. The judges attached so little importance to the point, they scarcely adverted to it. They placed their decision on the broad ground that marriage is a valuable consideration, and the wife and children purchasers of the property embraced in the settlement, and this rale is not affected by the fact of the cohabitation of the parties, and the birth of the children before the marriage. The counsel for the appellants have cited no decision, not even the dictum of a judge or commentator, except Chancellor Taylor, repudiating . the doctrine of Coutts v. Greenhow, although the same question has been the subject of investigation in other cases. Columbine v. Penhall, 1 Sm. and Giff. 228; Bulmer v. Hunter, 8 Equity Cases, Law R. 46; 2 Minor’s Institutes, p. 708; 2 Lomax’s Digest.
The learned counsel has not hesitated, however, to denounce a policy, as he terms it, which favors the marriage of persons who have for years lived in open violation of law, and whose children, already grown, have their characters and principles formed by association with the degraded and infamous. To encourage such a marriage
So far as Mrs. "Wickham is concerned,there is nothing in this record against her except her unfortunate relation to Mr. "Wickham before the marriage. Against the children nothing is said, except that they have not been educated as they ought to have been. Some of them are married and are raising respectable families. If the provision made for them is unjust to creditors, it is one of those wrongs which sometimes result from general rules of law operating with peculiar hardship in particular cases. Speaking for myself alone, I think these rules, though founded in wisdom, are but too often mere agencies for the perpetration of injustice and fraud, and that the whole subject needs the attention of the legislative department.
But we can give no relief, except by an overthrow of principle as deeply imbedded in our system as any in 'the: whole range of American and English jurisprudence.
I regret that this opinion has been so extended, but it could not be otherwise, at least by any effort of mine,,
Upon the whole, I am for affirming the decree of the circuit court.
Christian, Anderson and Burks, J’s, concurred in the opinion of Staples, J.
Decree affirmed.
