19 Ind. 7 | Ind. | 1862
Doughty and Snyder were indebted to Samuel Eisher in a sum exceeding one thousand dollars. They were in failing circumstances, and contemplated making an assignment. Fisher knew these facts. He called on Doughty and Snyder, and an arrangement was made and executed whereby they confessed several judgments before a justice of the peace, amounting, in the aggregate, to their debt to Fisher, on which judgments executions were issued, and levied upon the personal property of Doughty and Snyder.
“ A few days afterward,” how many, is not exactly stated,
Subsequently, Henry applied, to the Common Pleas for leave to pay off the execution of Fisher, and thus discharge the property from liens, and the leave was granted.
Thereupon the other creditors of Doughty and Snyder, who, in the mean time, had recovered judgments on their demands, filed a complaint for an injunction restraining the trustee from paying off Fisher’s execution, and praying that he should receive pay upon them only in a pro rata distribution, to be made by the trustee among all the creditors.
The complainant did not charge that the arrangement between Doughty and Snyder and Fisher, whereby the property was subjected to the executions, was entered into with any fraudulent intention on the part of any one, but simply recited the facts above stated.
The Court dismissed the complaint, or demurrer, as not showing a cause of action—a ground for equitable relief. And whether it did show such, is the only question this Court has to decide. If the lien of the executions was a valid one, 'the complaint was groundless; if it was invalid, the complaint made a case for relief.
Was the lien valid? If not, why not?
Naturally, a man has a right to make an honest disposition of his property; that is to say, he may use it to pay any honest debt. It may not be an honest disposition of property to sell it upon a new, and even adequate consideration, if the sale is to keep the property from creditors. It is an honest disposition of a man’s property to use it in paying or securing an honest debt. It is a dishonest use of it to pretend to convey it to pay or secure a debt, when, in fact, it is conveyed to be held upon a secret trust for the benefit of the grantor. It is not, in the eyes of the law, necessarily a dishonest use of a man’s property to convey all he has to pay or secure one debt while he leaves
The judgment below is affirmed, with costs.