13 N.M. 32 | N.M. | 1905
OPINION OP THE COURT.
— At common law there was no obligation to put upon record a conveyance affecting the title to land. It was valid without registration. Clark v. White, 12 Peters, 178. The object of registration laws is to impart information to parties dealing with property respecting its transfer and incumbrances, and thus protect them from prior secret convejrances and liens. Patterson v. De La Ronde, 8 Wall. 292. Registration is not to protect creditors, unless specifically provided for in the law. That the. registration act of this Territory is not made to protect creditors is shown by the reading of section 3953, of the Compiled Laws of 1897, which says: “From and after the 1st day of January, 1888, no deed, mortgage or other instrument in writing, not recorded in accordance with section 2953, shall affect the title or rights to, or in any real estate, of any purchase or mortgage in good faith, without knowledge of the existence of such unrecorded instruments.” Nothing is said in the act about creditors of the grantor.
Tn the case at bar there is not a scintilla of proof that the conveyances made by Boman A. Baca to his wife, were made as a cover for future schemes of fraud.
The claim of Noa Ilfeld and Louis Ilfeld, stands on a different footing than the others mentioned in the bill of complaint, for they were prior and not subsequent creditors.' The debt, due them is on a promissory note dated August 20th, 1891, due three years after date. This note was given before the conveyances mentioned in the complaint were made, and consequently they can be attacked by the Ilfelds if there was fraud in the conveyances, either actual or legal. One must be just before he is generous. The only fraud set up in the complaint is that the property 'described in the deeds was convejred for an inadequate consideration. This would be a legal fraud if any, and may be attacked by a creditor whose debt was incurred before the transfers were made, but not by one whose claim accrued after the conveyances were executed and delivered. We think therefore that the conveyances mentioned in this case may be attacked by Noa Ilfeld and Louis Ilfeld, but not by the other complainants.
If, however, the deeds are set aside, by Noa and Louis Ilfeld, then the proceeds of the sale of the property must be divided pro rata among all of the creditors of the deceased Roman A. Baca, who have proved up their claims in the probate court of Valencia county. "It is well settled, when a deed is set aside as void as to existing creditors, prior and subsequent creditors share in the fund pro rata.” Kehr v. Smith, 20 Wall. 31, and cases cited in note at bottom of page 36, at the end of the case.
The answer of the defendants in this case avers that the deeds of Roman A. Baca, to his wife, were given to repay her, the amount due by him to her for her dotal property and as part of her inheritance. If this consideration is proved, and is not inadequate, it is good, even as against Ilfelds.
■The learned judge who tried this. case below found that there was no proof of the value of the real estate conyeyed, and the evidence before ns sustains such finding, but it seems to us that this is a very material issue in this case, and one which must be ascertained before a proper judgment can be entered, as the determination of this question will largely decide whether or not the conveyance of the property in question was a legal fraud or otherwise. It is the duty of the appellees in this case to show that the conveyances were made for a valuable and adequate consideration out of her separate estate. Bank v. McClellan, 9 N. M. 643; or to repay her for money and property which she inherited and which was used by her husband.
The judgment of the lower court will be reversed, and the cause remanded for a new trial, with directions to the lower court to dismiss the complaint as to all the complainants except No a Ilfeld and Louis Ilfeld, partners doing business under the firm name of Ilfeld Brothers; and on the new trial of the cause to require more specific evidence, if such can be produced, of the amount due Ramona L. de Baca, by her husband, at the time the conveyances were made to her; and also to ascertain the value of the property conveyed to her by her husband, at the time such convejrances were made in 1892; and if there is a gross disproportion between the value of the property and the sum due Ramona L. de Baca, by her deceased husband, then the deeds shall be set aside, and the property subjected to the payment, pro rata, of the debts due to Noa Ilfeld and Louis Ilfeld, partners doing business under the firm name of Ilfeld Brothers, as well as the other debts due by the estate of Roman A. Baca, deceased, which have been allowed by the probate court of Valencia county, against said estate, after first paying from the proceeds of any sale to the said Ramona L. de Baca the sum which may be found to be due to her from her deceased husband; and, it is so ordered.