26 Iowa 458 | Iowa | 1868
The decision of this case turns chiefly upon the facts. We will not attempt a discussion of the evidence, bxit aim to state briefly our conclusions thereon.
I. We find from the evidence that the lands in controversy, excepting those pm’chased of Lyon, were purchased by Charles F. Harrow with his own means, and that he caused the title thereof to be conveyed to Francis Iff., with the fraudulent intent of hindering the collection of debts which he owed. There exists some doubt whether 'the Lyon land was purchased by Francis Iff. with his own money, yet the preponderance of the evidence is to that effect. The decision of the case, so far as this land is concerned, it will be found, turns upon another question.
II. The instrument executed by Francis M., in 1848, was a declaration of trust, and not a conveyance,' nor did
Their evidence as to its contents gives it that character, except the attorney who drew the instrument. lie states that it contained words of conveyance, and that it, in his opinion, operated as a conveyance. His deposition was twice taken. In his last deposition, taken in 1866, he gives it the character of a conveyance; in his first deposition, taken in 1859, he states the contents of the instrument to be a declaration of trust and an agreement to convey the lands in. accordance with the request or any will or devise of Charles F. Harrow. The evidence, in our opinion, clearly establishes that the instrument was a simple declaration of trust.
III. This declaration of trust did not embrace all of the land in controversy; about 200 acres purchased of Lyon and denominated in the arguments of counsel the “Lyon land ” 'were not intended1 to be covered by it.
Upon this point, too, therejte great doubt and considerable conflict of evidence, but more uncertainty and vagueness probably than conflict. It seems that the determination of this point turns upon one question: Was the Lyon land purchased before the execution of the declaration of trust ? If not, it is not claimed that it was included in that instrument. It appears that upon this question there ought not to be such uncertainty iii the evidence. There certainly is in existence, evidence upon this point that is positive and direct; but the parties have not produced it.
In our opinion the preponderance of evidence estab- - lishes'tke fact to be, that the land was bought after the
It is conceded, in argument by plaintiffs’ counsel, that if the Lyon land was not included in, or covered by, the declaration of trust, recovery in this suit cannot be had as to that land. Here, so far as that land is concerned, the case ends; but there being other property involved, it becomes necessary to discuss other questions which affect equally all the property involved in the suit.
IY. It is a well settled doctrine, that a deed executed to defraud creditors, is valid between the parties and their heirs, and that a court of equity will not require the grantee or his heirs to reconvey by way of enforcing a trust between the parties. Holliday v. Holliday, 10 Iowa, 200 ; see also the numerous authorities cited by Mr. Stiles, one of defendants’ counsel. The rule is not changed if the trust be embraced in writing. See Murphy v. Herbert, 16 Penn. St. 50, and authorities cited by Mr. Stiles.
The question arises, was the declaration of trust a part of the original fraudulent scheme to defeat the creditors
We are unable to discover from, tbe evidence, any change of purpose on the part of Charles F. or Francis 1VL Harrow, in the act of taking and executing the declaration of trust. At that time Charles F. was still indebted, and the very reason the instrument was executed was to enable him, in greater safety, to continue to thwart and defeat his creditors. The execution of the trust was prompted by no honest purpose on the part of himself and son. Had that been the motive, the property would have been honestly uncovered by removing the fraudulent barriers thrown around it for its protection against creditors. Honest intentions would have prompted an open conveyance of the property. The sole motive for the execution of the declaration of trust, was to enable Charles F. Harrow to defraud his creditors, and retain the enjoyment of his property, and secure it to his heirs. It was a part and continuation of the scheme of fraud which began in purchasing property with his own means in the name of his son. A desire to protect himself from anticipated .dangers, growing out of the death or want of faithfulness of his son, was the motive on his part, participated in by the son, which led to the fraudulent device of the declaration of trust. A court of equity will not enforce it. The decree of the District Court, dismissing the bill of complainant, is
Affirmed.
Affirmed.