3 Port. 196 | Ala. | 1836
I will first examine the subject, in reference to the cases, in which the Millers are the claimants, and the other so far, only, as the same principles are equally applicable to it — leaving out of view, for the present, the effect of the mariage, on the latter.
The inquiry is presented, whether it is competent for a father, who is a debtor at the time, to make a, voluntary conveyance of a portion of his property to a child, or children, so as to vest in them a valid title against the claim of his pre-existing creditors; though he retain at the time sufficient other property to pay his debts; or whether such conveyances are, in legal contemplation, fraudulent and void, as against such creditors?
So much of our statute of frauds, as is considered applicable to these questions, is in the following language —that every gift, grant, or conveyance of lands,” &c. or of “goods or chattels,” &c. “by writing or other
That a voluntary conveyance, i. e. one not founded on a consideration deemed valuable in law, of all a debtor’s property, or of so much as must unavoidably “delay, hinder, or defraud ” his existing creditors, is fraudulent and void as against them, all must admit. The only doubt appears to be, whether such conveyance of the debtors property, and what proportion, will be free from this objection.
We may readily imagine the great difficulty and embarrassment, that must necessarily result from the adoption of the latter principle. One consequence must be, that all trials of the right of property thus conveyed, may involve inquiries, respecting the amount and validity of all claims and demands against the donor; of the amount and value of the property he possesses and claims, and the sufficiency of his title to the same. If, however, it be found,, that such is the settled law, we, as a Court, without power to alter it, have only to acquiesce in the principle, and expound it accordingly.
It is insisted, on the part of the claimants, that
It is true, that, if we are bound to adhere to the principles of that decision, it justifies the position assumed, to its fullest extent.
The gift,„in that case, was from Caller to his son-in-law, several months after his marriage, and at a time when it appeared that the donor was/'much embarrassed by debts — much moré than he was able to pay.” The Court held, that if Caller had made a gift of all bis estate the law would declare it fraudulentperse, and void against the creditors. ' But, as the gift was of part only, it was prima facie, in advancement of the marriage, which is deemed, in law a valuable consideration; and that it was not void or fraudulent per se, but, a circumstance, which, if corroborated by other circumstances, might have authorised the jury to infer fraud.
' The principle declared on that occasion, obviously requires further consideration. Since that, and the other decisions referred to, of this Court, all the members have been changed, except myself. How far I may have concurred in that opinion at the time, is not recollected, or material to my purpose. We should proceed with reluctance, in any case, to overrule a principle of decision, once declared by the highest tribunal of the State, and which may have had its influence on the community : yet, we regard it as a solemn duty, to do so, if we discover it to be manifestly erroneous, and of a highly mischievous tendency. Should
It is also to be observed, that this Court has long since departed from the principle of that decision, without expressly overruling it. We did so, in the case of Cato vs. Easly,
There, a voluntary conveyance was executed by a mother, then a widow, to her children. At the time of the conveyance she owed the debt, for the satisfaction of which, the suit, (which was in Chancery,) was instituted. The property was held subject to the debt, the language of the Court being, that it was a “ legal inference, that a voluntary conveyance, made by one indebted at the time, is, as against such creditors, fraudulent and absolutely void.”
A case equally applicable to these under consideration, and mainly relied on, by the counsel for the defendant in error, is that of Read vs. Livingston.
In that case, which related to a voluntary family settlement, the Chancellor reviewed numerous authorities, both English and American, with his usual ability. He decreed, that a voluntary settlement, after marriage, by a husband, in favor of his wife, by means of a deed in trust, was fraudulent and void, against all the donor’s antecedent creditors : and that, without regard to the amount of the existing debts, or the extent of the property settled, or the circumstances of the party. But that, with regard to debts,
The views of the Chancellor, and the authorities he quotes, subject all voluntary settlements or conveyances, whether in favor of the wife or children of the donor, to the same rules; and, the principles he has thus recognised, appear to me, to be as just, reasonable and consistent, as the very difficult and complex nature of the subject, will admit of.
Among the variety of cases, on which he rests his opinion, he notices tire case of Townsend vs. Windham,
Chancellor Kent also sustains the,doctrine of Taylor vs. Jones.
The master of the rolls further observed that, “it was not material, in that case, what the circumstances of the father were, at the time of the settlement, any further than as evidence, to show if he was in indigent circumstances, that it was made with an intent to commit a fraud.”
He also remarked, in allusion to the sympathy, which is often appealed to, and excited, in cases of this kind, in favor of the objects of the conveyance, ‘that he had' “ great compassion for wife and children ;• yet, on the other side, it is possible, if creditors should not have their debts, their wives and children may be reduced to want.”
A case perhaps as favorable to voluntary settlements as any to be found of equal authority, (unless it be the one to which I first referred,) is that of
The grounds on which the County Court rested their decision, appear to me to furnish a full illustration of the vexation and uncertainty which I have advanced against the principle recognised by that decision. They admit that a conveyance may be void without any fraudulent intent in the parties to it; of course, then, it must be so pronounced by way of instructions from the court to the jury, yet, the validity of the conveyance is to depend on the complication of facts enumerated in the opinion; the enquiry must be encountered on evidence adduced — what constitutes prosperous circumstances? what embarrassment? what considerable indebtedness? what a reasonable provision, proportioned to the grantor’s property? and what a scanty provision for the payment of his debts? And, according to the principles of the decision, all other circumstances, which, in reason and justice would be entitled to equal weight in ascertaining the tendeney of the gift, must also be investigated. Under a practice of this kind, I think we might expect a different rule of right frorii each several trial, and that it would be impossible to establish any thing like certainty or uniformity of title, under voluntary conveyances. It would appear, however, from the facts of record in the cases before
In Burnet vs. Bedford Bank,
Numerous other cases referred to and commented on by Chancellor Kent, in the case of Read vs. Livingston, appear to me to place the principle of the decision in that case, beyond a question.
In the case of Sexton vs. Wheaton,
In the case referred to, the Chief Justice remarked, that, “in cdnstrueing this statute, the Courts have considered every conveyance, not made on consideration deemed valuable in law, as void against previous creditors;” that th.ey fell within the proscriptive influence of'the statute against deeds devised, &e. to the end, purpose, and intent, “to delay, hinder or defraud creditors;” but that, with respect to subsequent creditors, the application of the statute appeared to have admitted of some doubt.
He quotes with approbation the declaration of Lord Hardwicke, in Walker vs. Burrows,
The-effect-of this decision, then, as well as of others examined, is an explicit denial of validity to voluntary conveyances, as against previous creditors; and to leave them, in respect to subsequent creditors,
The consequence is, that in the two cases, in which the Millers are claimants, the judgments of the Circuit Court must be affirmed.
In support of Huffman’s claim, it is contended, that, though the conveyance from the father to the daughter might, while she remained sole, be deemed fraudulent and void; yet that, after the marriage, the husband was entitled to claim, as a purchaser.
It is also insisted, that there is, in law, no such distinction, as was recognised by the Circuit Judge’s instructions to the jury, between gifts, made in contemplation of the particular marriage, and others, with out that inducement, but, for the general advancement of the daughter.
The counsel has cited authorities on these points, which render them, at least, plausible, and entitle them to deliberate consideration. But, before noticing the case mainly relied on, it is necessary to remark, that notwithstanding the subsequent marriage, the slave in question, does not appear ever to have gone into the use or possession of the son-in-law : that the contrary inference arises from the fact, as stated in the history of the cases, that this negro, as well as the others, was' levied on, at the plantation of the defendant in execution, the same being then in his possession. Our understanding of the fact is, that the father continued in the use and possession of this, and all the other negroes conveyed to these claimants, to the time of the levy.
If we should infer that the father and his sons, (they being single, so far as we know,.) lived togeth
But, in answer to this objection the counsel' refers to the case of Hobbs vs. Bibb,
It is proper to notice, that in the case referred to-, the conveyance was admitted to have been founded on a valuable consideration, which existed or passed at the time of its execution ; and that, though the possession was not changed, as imported by the deed, the failure was attempted to be accounted for, by means of a contract of hire entered into between the parties at the same time. The decision of the Court was, that the possession of personal, property, remaining with the vendor, was presumptive evidence of ownership in him ; but, that this presumption might be rebutted, by proof: that such possession was only presumptive evidence of fraud — not fraud, per se:
There, the opinion was, that the want of possession, in case of absolute conveyance, was a presumption of fraud. What proof would be sufficient to rebut it, is left indefinite : whether evidence of a valuable consideration, alone, would be required, or that, together with a hiring or something tantamount, does not appear. If any thing more than the valuable consideration be necessary, Huffman’s claim, if
But, the views of this Court, as entertained near the same time, but afterwards, were better defined, in the case of Moore vs. Ayres.
I decline entering into particular comments on the opinions delivered, in those two cases, deeming it sufficient to refer to them, for the reasons and authorities on which they rest. In the case, of Moore vs. Ayres, my own views are expressed at length, in which I concurred with the then majority, in the result, under the peculiar circumstances of the case.
In this latter case, the decision was, that where the vendor remains in possession of personal property after a sale, it is not sufficient, as against creditors, that the consideration be bona fide, and the bill of sale recorded. But, it must appear, that the sale was not made “to hinder or delay creditors;” and this is to be determined by the jury, from all the circumstances.
The opinion of the Court, in both the cases, was delivered by the then Chief Justice. In the latter, he remarked, that “it never was contended, but possession remaining unbroken with the vendor, was, at least, a circumstance from which fraud must be inferred, if it was not explained.” This was said, in reference to a conveyance on valuable consideration. Whether this declaration is entitled to the ef-feet of varying or qualifying the principles of the decision in the former case of Hobbs vs. Bibb, may
We do not intend, on this occasion, to express, either our approbation of, or dissent from the decisions, made in the cases of Hobbs vs. Bibb, and of Moore vs. Ayres; yet, the remark is due, that the latter was influenced, in a great degree, by the former, and the former, by the case of Bissell vs. Hopkins,
The last mentioned case involved the validity of an absolute bill of sale, for one half of a sloop, founded on a valuable consideration. The only objection urged against it was, that possession did not accompany and follow the deed. The Inferior Court had decided, that “the bill of sale was fraudulent, as to creditors in judgment of law, and refused to' suffer the case to go to the jury.” The Supreme Court affirmed the decision, on the same ground.
The authority mainly relied on to 'sustain Huffman’s claim, is the case of Sterry vs. Arden.
It was ruled by the Chancellor, that a voluntary conveyance, intended as a settlement for a child of the grantor, was void as against a subsequent purchaser, for a valuable consideration, with only implied notice of the pre-existing deed, by the statute of frauds.— But he maintained that such deed might be rendered valid, by matter ex post facto, as by some valuable consideration intervening; and that the subsequent marriage in that case, which occurred prior to the second conveyance, was entitled to that effect, in as much as the husband was induced on that account to marry the daughter: that, under these circumstances, the first conveyance ceased to be voluntary, and became valid against the subsequent bona fide purchaser, for the valuable consideration. He also held that it made no difference whether the particular marriage was in contemplation at the time ef the voluntary conveyance or not.
The fact that the grantor was not indebted at the
From this decree an appeal was taken to the Court of errors, where the same was unanimously affirmed.
In the latter Court, the case is entitled Verplank vs. Sterry,
In this ca.se the facts are considered essentially different from those in the case reviewed; so much so as-to.fall within the different principle of law. The circumstances of Miller, the grantor, having been considerably indebted at the time of this conveyance; of the property conveyed being personalty, and no delivery of it, or known cause to prevent its being done, or any explanation of the non-delivery; of the conveyance having been voluntary and absolutely void for twelve months after its execution as against this creditor— these facts present this as a case very different from the other. They subject it to the principle therein recognised for the protection of pre-existing creditors; under which Verplank was not permitted to occupy a more favorable position than that of subsequent creditors.
But another decision of the same Court, in which the decree referred to was rendered, sustains the latter principle even more explicitly. It is that of Roberts vs. Anderson.
But, he continues, the statute of 13th Elizabeth, (which is, in effect, the same I have quoted from our statute of frauds,) was intended to protect creditors from fraudulent conveyances; and here a different rule of construction prer'ails. “The original deed, from a debtor, to a fraudulent grantee, is utterly void, as to creditors — and, as to them, the grantee can make
If the debtor sells, himself, in a case, where the creditor has no lien, and sells for a valuable consideration, he acquires means to discharge bis debt, and it may be presumed he will so apply them. If his fraudulent grantee be allowed to sell, the grantor can not call those proceeds out of his hands; and, the grantee can either appropriate them to his own use, or to the secret trust upon which the fraudulent coif veyance was made.
There is more danger of abuse, and that the object of the statute would be defeated, in the one case, than in the other. The fraudulent grantee has no title, as against the creditors: the deed* as to them, is utterly void ; and the subsequent conveyance from him would, as against creditors, have no foundation.
The foregoing views are believed to furnish a sound exposition of the principles of law, which are alike applicable to the case under consideration, and to shew, that the objections to the validity of Huffman’s title, as previously stated, are insuperable.
We are unanimous in this opinion. The judgments in all the cases must be affirmed.
1 stew. 67
3John.ch 481
2Ves.1.
2Atk. 600.
1 Days C. Rep N. S. p. 525
11 Mass R 421.
b 8 Wheat. Supreme 229.
1 Atk.94.
2 Stewart 386
2 Cow.431
7 ib. 732.
1 John ch R. 261
12John.R. 536
3 John Ch. R. 372