34 W. Va. 442 | W. Va. | 1890
On the 15th day of February, 1883, Eloyd G. Smith, of Upshur county, one of the defendants below and husband of Mary E. Smith the appellant, executed to Ebenezer Leonard, trustee, a trust-deed conveying three several parcels of land in and near the town of Buckhannon, fully described, to secure his wife, Mary E. Smith, in the payment of a bond, that day executed by him to her for the sum of two thousand four hundred and twenty five dollars fifty cents, due one day after date with interest from date, executed for borrowed money. The trust-deed provided, that, if the debtor should make default, then the trustee was to sell when required by the creditor. This trust-deed was duly ackowledged, and admitted to record on the 16th day of February, 1883, at 7 o’clock a. m. On the 15th day of February, 1883, for a trespass which took place on the 11th day of February, 1883, defendant Mylius brought suit in Upshur county against Eloyd G. Smith and his brother, James L. Smith, and on the 15th day of October, 1887, ob-
. On the 24th day of October, 1887, Ebenezer Leonard, as trustee, brought this suit in equity against'Eloyd G. Smith, James L. Smith, Levi Leonard, who held a vendor’s lien on one of the lots mentioned, and Charles E. Mylius, the judgment-creditor, setting out the foregoing facts, and that Mary E. Smith and Eloyd Q-. were married on the--6th November, 1879; that Mary E. was then the owner in her own right of a large and valuable estate, which was ■ after marriage her sole and separate property not derived from her husband; that out of it she furnished money to buy said real estate, and that out of her other separate estate the loan was made to her husband, secured by the bond mentioned in the deed of trust, and that, to protect her lien on lot No. 84, she furnished out of her separate estate the money to pay Levi Leonard two hundred dollars, and interest, which was paid since 15thFebruary, 1888, and therefore not included in the bond secured by the deed of trust; that he has been directed to sell, but deems it improper to do so, by reason of the liens of Leonard and of Mylius, without the direction of the court, and prays for ascertainment of liens with their amounts and priorities and the direction of the court in executing the trust.
Defendant' Mylius answered, charging that the trust-deed and bond secured were fraudulent; also filed what ivas treated as a cross-bill, attacking the deed of trust as fraudulent. The defendants Leonard, Mary E. Smith, and others, demurred to the .cross-bill, and the court sustained the demurrer as to those defendants, who were not parties to the original suit, and, as to them, dismissed it with costs. The defendant Mary E. Smith answered the original bill, denying that she out of her separate estate loaned to her husband the money to buy said real estate but alleging that she did lend him the money mentioned in the deed of trust. To this answer, there is a general replication, also a general replication to the answer of Mylius to the original bill, which answer does not expressly seek affirmative
November 25, 1879. F. G. Smith. Dr.
To cash.$ 600 00
January 28, 1880. To note and interest on L. Young.1,600 00
April 20, 1880. To cash.'..220 00
Defendant Mylius took the depositions of some five witnesses, and Mary E. Smith of some nine witnesses ; and the two causes came on to be heard together on the 19th of October, 1889, when the court decreed “that the deed of trust of Floyd G. Smith to Ebenezer Leonard, trustee, of 15th February, 1883, conveying certain real estate therein mentioned and described, to secure an alleged debt therein mentioned to defendant MaryE. Smith, was fraudulent and void as to the said Charles E. Mylius, and as to his judgment against Floyd G. Smith and James L. Smith for two thousand two hundred dollars, with interest from 15th October, 1887, and costs thereon, and that the said property thereby conveyed to the said Ebenezer Leonard is liable to be sold to satisfy the same.” It gave Levi Leonard a decree for two hundred and nineteen dollars seventy six cents, with interest from the 19th of October, 1889, as first lien on the lot sold and conveyed by him to Floyd G. Smith; to Mylius, a decree for two thousand six hundred and twenty six dollars sixteen cents, with interest from that date, and gives forty days for the payment of sums decreed, and then appointed commissioners, who shall in default of payment sell on the usual terms.
From this decree, Mary E. Smith appeals.
Taking the grounds of error in the order assigned in arguments of counsel, we find: The decree is complained of because, “in effect it wholly sets aside the trust-deed to Leonard, trustee, securing appellant her debt, and nowhere in subordination to the Mylius debt or otherwise decrees its
The decree here complained of seems on this point to have been drawn with these cases in view. It declares the trust-deed fraudulent and void, as to the judgment of My-lius, but does not set it aside. If defendant, Eloyd G-. Smith or his wife or any person in interest shall pay to Mylius his decree, then the trust-deed stands good between the parties thereto; and, if this should not he done, and a sale should take place, then, as between husband and wife, the court would decree to her the surplus, or so much as may he necessary to pay her debt.
Should the demurrer to the cross-bill have been fully sustained, and the bill have been dismissed ? Defendant My-lius filed his answer to the bill of plaintiff) Leonard, but he does not allege any new matter therein, on which he relies for or prays affirmative relief; but on the contrary, says he is advised, that as he seeks relief against the trust-deed, he should file a cross-bill to the bill of the plaintiff, and not
Should there have been a convening of the lienholders before the decree of sale ? Leonard brought his suit asking the Court to ascertain and adjudicate the liens on the real estate, the lien mentioned in the deed of trust, as well as the other liens thereon, according to their priorities, and for a decree of sale. Tie makes Mylius, the judgment-creditor, a party. He also makes Levi Leonard, who holds a vendor’s lien, a party — giving the date and amount and character of each lien. He desires to have the direction and sanction of the Court in executing the deed of trust. Defendant My-lius files his cross-bill, seeking to invalidate the trust-deed as fraudulent. It nowhere appears in the record that there is any other lien of any kind. Still, as the one suit is to enforce a judgment-lien, before a sale is made under the decree, or the proceeds of the sale of the real estate are distributed, the Circuit Court should cause the lienholders to be convened in the mode provided by law.
But we all know what an amount of evidence, seemingly unimportant at the hearing, will somehow creep into depositions. In dealing with it practical convenience and the dispatch of business require that the Circuit Court
In this case, the ground of exceptions was in the main, that certain questions and answers were as to matters not then, after amendment of cross-bill, in issue, and therefore they were impertinent and immaterial. They were, in the discretion of the Court, properly left to be passed on at the hearing, and the exceptant received no harm by the action of the Court in thus passing upon them and upon the question of competency on another point.
"We come now to the controversy involving the merits of the case. Did the court err in holding that, from the pleadings and proofs, the case is for Charles E. Mylius, holding the deed of trust given for Mrs. Smith’s debt fraudulent and void as to Mylius’s judgment against her husband? It was the duty of the Circuit Court to decide it, and its decision is entitled to weight. The facts of the case are as follows: Mrs. Smith’s maiden name was Sexton. She was the daughter of James Sexton and Lucinda, his wife, a daughter of Ebenezer Leonard.- The father died in 1872 ; the mother in 1878. Her grand-father, Ebenezer Leonard, qualified as administrator of her father, and as her guardian. On November 6,1879, at the age of nineteen, she married the defendant Eloyd G. Smith. Considerable property from
John T. Courtney, who ivas frequently at the house, had, in January, 1883, seen her account-book in which she made these charges, and recognizes this as the book.
John A. Hess borrowed money of Floyd Smith, which he got of his wdfe. She had this account-book and her pocket-book together, but he did not see her write in it.
Ellen M. Smith, the mother-in-law, saw Eloyd borrow the six hundred dollars, and saw his wife get her account-book and charge it.
James E. Smith, a brother-in-law, had seen her account-book when she and her husband first went to housekeeping-
C. C. E. McWhorter, clerk of the County Court, was an expert, and, having examined the entries, said from their appearance they may have been made at their respective dates, and that they were all written by the same person.
John A. Hess, clerk of the Circuit Court, after examining the book, said the entries might have been made at their respective dates.
The people of this state, in the spirit of the times, and by the highest manifestation of their own will, required the legislature to pass such laws as might be necessary to protect the property of married woman from the debts, liabilities, and control of their husbands. Article VI, § 49, Const. W. Va. The legislature, among other things, had already enacted that the real and personal property of any female, who may hereafter marry, and which she shall own at the time of marriage, and the rents, issues, and profits thereof shall not be subject to the disposal of her husband nor liable for his debts, and shall be and continue her sole and separate property, as if she were a single woman. And this is still our law on the subject. Code, c. 66, s. 2.
In this case, the money or property belonged to the wife at the time of her marriage. It came to her from her father’s estate, and was paid over to her by -her guardian. She expressly loaned it to her husband, charging him at
The bringing of the suit by Mylins would seem to have been the occasion of executing the bond and deed of trust at that time. That was a 'suit for assault and battery. Floyd G-. Smith does not seem to have then owed any one else a liquidated debt, except a balance of purchase-money to Levi Leonard, secured by vendor’s lien retained on the face of the conveyance. He paid one thousand eight hundred and fifty dollars for his real estate, but we are not told what it is worth. He had but little visible personal property beyond what was exempt from levy. He does not seem to have owned any other real estate, but to have had considerable sums of money; for in 1883, the same year in which he executed the deed of trust, he had two thousand two hundred and sixty dollars to his credit in bank, almost enough to have paid off the debt due his wife. He determined to secure his wife’s debt against contingencies. He was then under a liability for damages, which four years after were assessed at two thousand two hundred dollars. It is fair to conclude that he intended to secure his wife
If the property coming to her by the death of her father had been land instead of money, it would have been safe from her husband’s creditors, because the common law secured it to her. Under the old system, her property would have been vested, perhaps, in a trustee for her use. But now, a married woman relying on our statute is almost certain to lose her personal property. This is due in good part, no doubt, to the transitory nature of that kind of property, to the relation of husband and wife so easily opening a door to fraud, and to jealousy with which the rights of honest creditors are watched, who are induced to give credit on the apparent ownership of the husband. The statute says this personal property shall be and continue her sole and separate property, as if she were a single woman. She may give it to her husband, if she sees fit, and, in dealing with her husband, the presumption, owing to the relation between them, to principles of evidence, and the principles of public policy, would seem to be against her, where his . creditors are concerned. A mere receipt by him, or delivery by her, followed by his mingling it with his means, or using it in his business for years, will be treated as- a gift not a loan; the law raising no implied promise such as it would raise from such transactions' between strangers. And when, in after years, and in failing circumstances, the husband transfers property, directly, or indirectly, to his wife, such transfer is justly regarded with suspicion; and, unless it clearly appears that it was entirely free from any wrongful iu-tent or purpose to withdraw the property from the husband’s creditors, it will not stand. In such transfers to the wife or to another for her benefit there is a presumption against the wife in favor of the husband’s creditors which she must overcome by affirmative proof. Maxwell v. Hanshaw, 24 W. Va. 405. In Bank v. Atkinson, 32 W. Va. 203 (9 S. E. Rep. 175) Judge Brannon says: “Our decisions are rigid, it must be admitted, but, on the whole, are right, and pro-motive of the highest good faith between debtor and creditor,
The case here made on the part of the wife fulfills all these requirements. There is no room, so far as I can see, for any reasonable suspicion as to any element essential to her right to have her debt paid to her out of the property charged with its payment. That this two thousand four hundred and twenty dollars belonged to the wife at the date of her marriage is not questioned. That she made an express loan of it to her husband, charging the items at the time in her account-book, and he an express promise, made at the time, to return it, is made to appear beyond all reasonable doubt. That it ivas an honest debt, justly due, and secured by deed of trust, and not a previous gift, express or implied, trumped up as a loan for the occasion, clearly appears from the evidence. All that can be said against it is it was preferred as against the liability for damages then sued for. But we have no bankrupt law, insolvent and assignment law, or any law or decision taking away such right to give an honest preference to a just debt; but the right to give such preference has been recognized by a current of binding decisions, running back through two generations. McCollough v. Summerville, 8 Leigh, 415; Bank v. Atkinson, 32 W. Va. 203 (9 S. E. Rep. 175.)
In this deed of trust there is no fraud in fact, no benefit to the debtor, no harm to the creditor, other than such delay as the statute itself prescribes in such cases. And, if it may be made to redound indirectly to the advantage of the husband, that is due to the fact that his wife is the preferred creditor and to our law, which says: “ Her real and personal property shall not be subject to the disposal of her husband, nor be liable for his debts, and shall be and continue her sole and separate property, as if she were a single woman.” See Metsker v. Bonebrake, 108 U. S. 66 (2 Sup. Ct. Rep. 351) and Bank v. Tavener, 130 Mass. 407. The deed of trust being valid, the right of Mrs. Smith to be sub-rogated to Levi Leonard’s vendor’s lien, as to the bond paid and lifted by her to protect her trust-lien, follows, there being no contravening equity. The lien-holders, as here ascertained, and others, if any, should be convened, and the
REVERSED. Remanded.