30 Ala. 396 | Ala. | 1857
In the great case of Reade v. Livingston, 3 Johns. Ch. 481, Chancellor Kent, with his accustomed research and ability, reviewed and collated the numerous decisions bearing on the question presented by this record; and, after asserting the doctrine, that a voluntary settlement or conveyance, made by one indebted at the time, was fraudulent and void as against such debts, irrespective of their amount or the value of the property conveyed, he proceeded further to declare, that subsequent creditors might impeach such settlement or conveyance, on the ground of prior indebtedness; and that such conveyance or settlement would be declared fraudulent and void as against the latter class of creditors, if the antecedent debts wore sufficient in amount to afford reasonable evidence of a fraudulent intent: that to justify this conclusion, it was not necessary to show the absolute insolvency of the settler.
In our own courts, this question has been frequently considered. In Miller v. Thompson, 3 Porter, 196, the case of Reade v. Livingston, supra, was quoted approv
In Corprew v. Arthur, 15 Ala. 525, this court pretty clearly indicated a disinclination to go the extreme length of the English decisions, in construing the statutes against fraudulent conveyances; and while it is conceded that an intention to defraud will vitiate a conveyance, even at the instance of a subsequent purchaser, it is said that a conveyance purely voluntary will be upheld against one who subsequently purchases with notice. — See Lightfoot v. Stiles, supra; Fisk v. Stubbs, and Spencer v. Godwin, at the present term.
This subject is very fully considered in American Leading Oases, vol. 1, pp. 49 to 85. On pages 71-2, it is said, that a voluntary conveyance is not void against subsequent creditors, unless it be actually fraudulent; that a colorable conveyance, accompanied by the presumption of a secret trust for the benefit of him whose debts are sought to be enforced, is void, whether the debts be precedent or subsequent; and that such voluntary conveyance is always fraudulent against those subsequent creditors, whose injury is actually contemplated. It is further said, and well sustained by authority, that “an intent actually to defraud creditors is to be legally inferred from the grantor’s being insolvent at the time, or greatly embarrassed, or so largely indebted that his conveyance necessarily has the effect to hinder and defraud ci’editors; and a voluntary conveyance, made under such circumstances, may be set aside by a subsequent creditor.” Reade v. Livingston, supra ; Hutchison v. Kelly, 1 Rob. Va. 125.
We have thus far considered this case upon the legal presumptions. The testimony certainly fails to make a case favorable to the'interests of the appellants. At the time of the purchase, Mr. Huggins was ruinously insolvent. He purchased not only the property in controversy, but other real estate; and invariably took the title in the name of his friend White. Long after the purchase of this property, he leased it in his own name for ten years, exercising unlimited control over the premises. His children were all minors, — not of the ages when children are usually advanced. These circumstances force us to conclude, that Mr. Huggins’ object was to delay, hinder and defraud his creditors ; and under the authorities cited in the-briefs of counsel, as well as those above, a subsequent creditor may set aside a conveyance thus made.
We have disposed of the only point made in argument for the appellant. The equity of the bill is supported by the case of Watts v. Gayle & Bower, 20 Ala. 817.
The decree of the chancellor is affirmed.