112 Ala. 284 | Ala. | 1895
It may be admitted, since it reasonably enough so appears, that at the time of the alleged fraudulent sale by Peace & Son to Wyatt, Peace & Son were the debtors of complainant, by open account, in the sum of $447.30.
For the purpose of showing that the sale of Peace & Son to Wyatt was fraudulent, the complainants examined said W. P. Wyatt as a witness. His evidence tends to show, without conflict, that the price his wife agreed to pay for the goods and fixtures, and for which their notes, which it is averred in the bill were negotiable, were given, was full and adequate. The notes were for about $1,550. He testified, that the goods and the store fixtures which he bought, were not in fact worth more than from $850 to $900.
He was asked the question, if at the time of this purchase he knew that Peace & Son owed anything, and he answered, he did not and had no knowledge of it. He was also asked, if he knew whether Peace & Son’s creditors were pressing them at the time, and he replied he did not know anything about it. This statement was made on his first examination. Afterwards he was recalled by complainants, and examined a second time, and he was again asked, if when the goods were purchased by him for his wife, he knew that Peace & Son owed any debts, and he again responded, he did not. He was also asked to state any facts tending to show why he did not, and he replied, that he had no idea in the world of buying out Peace & Son, until one of them, W. H. Peace, came to-his place, as he supposed, to see him, and called his attention to it; that that conversation lasted only about twenty minutes, and the next morning, he went over to Peace & Son’s place of business to see about the proposed sale, that they agreed as to the kind of trade they would make, and the day following, they took an account of the stock, and that, before the sale, no facts or circumstances came to his knowledge to cause him to suspect or know that Peace & Son owed any debts. He also swore, that he had known D. W. Peace about ten years, but not intimately; that he knew him in Crawford, Miss., where they both resided before removing to Birmingham ; that Peace was a religious man and he, Wyatt, was in the saloon busi
The complainant offered other proof tending to show that Peace & Son owed other debts besides the one to them ; that some of their creditors were pressing them, and that their commercial credit was not good. On the other side, the proof tended to show, that they had been extended and enjoyed good credit in the town, and had been in the habit of paying their bills every week.
Wyatt, who was in the same business, had just been burned out, and his stock was insured. It was natural to suppose that he would desire again to start his business, and to buy a stock of goods, if he could, on such terms as would enable him to do so. There was no secrecy about the transaction, and no proof that the Wyatts knew at the time that Peace & Son were insolvent or embarassed, or were attempting a transaction to defraud their creditors. Peace & Son transferred the purchase money notes for the goods to H. V. Peace, in part payment of a debt they owed him. Their accounts and claims, amounting to from $1,500 to $1,700, they did not sell or dispose of, but proceeded to collect, applying the collections, amounting to about $1,000 or $1,200, to the payment of their creditors, including the complainants. They were enjoined in this case from collecting the others. The next day after the sale to Mrs. Wyatt, they went to the complainants and told them of the sale to Wyatt, and asked for the amount of their own account, promising to pay the same, and afterwards, before this bill was filed, had paid them over $200.
Without further reviewing the evidence, of which there is a great mass, it is sufficient to add, that on the evidence, we must agree with the chancellor, that the sale does not appear to have been an invalid one.
The only evidence tending to show that Wyatt, after the sale, acquired knowledge of the fact that Peace & Son were indebted at the time of the sale, was that furnished by himself on his examination by complainants. He stated that he suspected, within two or three days after the sale, that they owed money ; that parties came in and said that they owed them, and they did not deny it. But this was not, without more, sufficient to charge him with knowledge of Peace & Son's alleged fraud, such as would reasonably put him on inquiry concerning it. They might have owed debts without having any intention to delay or defraud their creditors. It was not calculated, under the circumstances of this Case, to arouse suspicions of their insolvency.
The complainants make the further point, that Peace
Corrected, affirmed in part, and remanded in part.