36 Ky. 450 | Ky. Ct. App. | 1838
Lead Opinion
delivered, the Opinion of the Court.
Charles W. Hall having filed a bill in chancery in the Scott Circuit Court, against John Hall, then of this State, and also against one McGruder, for the purpose of obtaining a decree for money, and John Hall having, after he answered the bill, died in Louisiana, where, during the pendency of the suit, he. had become domiciled — a bill of revivor was filed for reviving the suit against the executor, heirs and devisees of the decedent, and which alleged that the executor had been qualified and still resided in Louisiana, and that, though the heirs and devisees lived in Kentucky, the complainant had no knowledge of any assets, real or personal, elsewhere than'in the State where the testator died.
Subpoenas were served upon the persons against whom the bill of revivor was filed as heirs and devisees; but. there was no actual service on the foreign executor.
The Circuit Court, however, rendered a decree for a large sum of money, to be pa.id — first, out of assets in the hands of the executor, next out of estate descended, and next out of estate devised, and lastly by McGruder, who was the testator’s surety.
A fieri facias, which was issued on that, decree, was levied on three slaves in the possession of Alfred J. Hall, one of the heirs or devisees against whom the decree
Upon the trial, after the execution of the bill of sale had been proved, Warren offered to prove that it was made only for the purpose of defrauding the creditors of John Hall. But the Circuit Judge was of the opinion that, as, in his judgment, the decree against the executor was void, and the slaves, if .they were, for any purpose, the property of John Hall at the time of his death, passed to his heirs, devisees, or executor, according to the law of the domicil only, and as, also, there was no evidence as to what that law .was, therefore the slaves did not appear to have been subject to the execution against either the executor, or the heirs and devisees; and consequently, considering the question of fraud in the bill of sale, as therefore immaterial, he refused to admit the proffered evidence.
And thex-eupon, a verdict and judgment were rendered against Warren, for the slaves, or their assessed value, and for damages for the detention of them. And that judgment we are now to revise.
Unless the decree be sufficient to show that Charles W. Hall was a creditor of John Hall, deceased, evidence tending to prove that the bill of sale by the latter to Alfred J. Hall was fraudulent as to his creditors, was certainly inadmissible, on any allowable hypothesis. And
_ . . . . Eut the heirs and devisees, not only were within the jurisdiction of that Court, but were actually served with process; and, although the bill of revivor did not show that they were liable, nevertheless, as the Court had jurisdiction over them, and over the question of liability, fad that they did not appear to be liable, does not show that the Court had no jurisdiction to render the decree, but proves only that the decree was erroneous— not void.
Then, however palpably erroneous the decree may have been, as it was valid against the heirs and devisees until reversed, the sale under the execution upon it, before it fiad been reversed, vested in the purchaser a good legal title, if the slaves who were thus sold were subiect to be sold in satisfaction of the decree, which, so J 77 far as the heirs and devisees were-concerned, was evidence of the fact that C. W. Hall was such a creditor of John Hall, deceased, as might question his bill of sale to A. J. Hall, on the ground that, though it was binding ' . . , , ° , . , ° on the parties to it, it was trauduient and void as to John, Hall’s creditors,
The only question yet to be considered, therefore, is whether the slaves were liable to be sold under the de- • • cree against the heirs and devisees of John Hall.
If the laws of Kentucky should govern the case, we do not doubt that the slaves were subject to be sold-unher the decree against the heirs and devisees, upon the hypothesis that the bill of sále to Alfred J. Hall was void as to Charles W. Hall; because then the law would c011slher A. J. Ha'll as holding them, not in his own right, but as devisee, or heir, for the benefit of such a creditor
Had there been administration' of John Hall’s estate in. Kentucky, and had Alfred W. Hall asserted no right to the slaves under his bill of sale, the laws of this State would alone have regulated the rights of creditors; and those laws would have made those slaves assets in the hands of the administrator cum testamento. And there being no administrator, A. J. Hall might have been considered as being possessed of the slaves as h devisee or as an heir, to whom, by the law of this State, they might have .descended, like land, when no personal representative claimed them.
But A. J. Hall having held and claimed the slaves as' a purchaser from his father in his lifetime, and the bill of sale being conclusive on John Hall, however fraudulent it may have been as to his creditors, it is evident that, even if there had been no creditor here, the law of Louisiana could not be applied to those slaves, because they
We are therefore of the opinion that, although the proceedings in the suit in chancery were singularly inappropriate, and the decree thereon rendered was glaringly erroneous, the sale of the slaves now in question was legal and valid, if, as attempted to be proved on the trial of this case, the bill of sale from John to A. J. Hall was void as to C. W. Hall, as an ascertained creditor of John Hall; and consequently, that if C. W. Hall thus had a right to sell those slaves, Warren, as purchaser, may have acquired a legal title to them.
And we are also of the opinion that the fact that the bill of revivor suggested that C. W. Hall, the complainant therein, had no knowledge of any of John Hall’s estate being in Kentucky, should not now' preclude an enquiry into the validity of the bill of sale: first — because such a suggestion does not necessarily imply an admission that A. J. Hall’s claim to the slaves was not fraudulent, but should be understood rather as a declaration that C. W. Hall did not know that it was invalid, even as to himself, or as evidence merely of his ignorance at that time, of the fact that. those slaves were then in Kentucky, or had ever been the property of John Hall; for there is nothing in the record tending to prove that, during the pendency of the suit in chancery, O. W. Hall, or Warren as ‘the beneficial party, was informed respecting any of those facts; and secondly — because, were it admitted that both C. W, Hall and Warren believed, whilst the suit was pending, that A. J. Hall had been a bona fide purchaser of the slaves, still Warren would not be thereby estopped from now proving that the bill of sale was fraudulent and only color-able.
It is therefore our opinion, that the rejected evidence ought to have been admitted.
Wherefore, it is considered that the judgment of the Circuit Court be reversed, and the cause remanded for a new trial.
Rehearing
Petition eor a Re-hearing.
The Court (as it seems to me,) having formed an erroneous impression of a material feature of the case as presented by the record, and. having expressed an opinion upon the main point of law in this controversy, contrary to my understanding of a series of decisions of this Court — as counsel for the defendant, I am compelled to urge an application for a re-consideration of the decision rendered in the cause.
The bill, upon which the decree mentioned in the
An, amended bill was exhibited before the death of John . Hall, in which it was alleged that he was insolvent, and had no property in Kentucky; that the complainant expected to levy the debt against McGruder, the surety alone; that he was about to dispose of his effects to defeat the claim of the complainants; against which an injunction was‘prayed, and granted, upon the affidavit of Warren. On the death of John Hall, a bill to revive the suit against the executor, and against the widow and children as devisees, and the children — not A. J. Hall alone — as heirs at law of the debtor, was exhibited; and in this bill, it was again alleged, not that the complainant had no knowledge of any estate of John Hall in Kentucky — but “ that he had no estate of any kind whatever in said State.”
Mulholland was proceeded against by publication; and the record is not entirely satisfactory that the widow and heirs had been notified by the execution of process. The subpoena bears date 11th November, 1830, and the return of the officer the 10th of the same month. One of the children was an infant, who made answer by guardian. ' The decree was rendered for the debt — to be levied, first, of the assets in the hands of the executor unadministered, or which might come to his hands to be administered; secondly, of estate descended, or which might afterwards descend to the heirs: thirdly, of estate
Before the death of John Hall, he had sold the slaves ' to A. J. Hall, and made him a bill of sale f<pr them. Upon this bill of sale, he relied for the recovery of the slaves in the Circuit court; and Warren upon his purchase at ■the sheriff’s sale. He offered to introduce .evidence to prove that the bill of sale was fraudulent as against creditors, but it was rejected as irrelevant. • ' " ■
This statement, it appears to me, embraces and 'contains a correct view of all the facts of the case, as presented upon the record. The Court seems to understand the complainant in the suit in chancery, as stating merély his want of knowledge of estate left by John Hall, the debtor, in Kentucky; and not to deny or negative the fact that he had left estate in., the State. But it appears to me, that the statements in the. amended bill and the bill of revivor, with the affidavit to, and the object of, the amended bill, should be taken as conclusive,, that there was no estate in Kentucky which could have-descended to the children of John Hall, as heirs at law, for any purpose; and if so, I would submit, whether the decree, as against the heirs, should have the effect given to it by the opinion delivered: that is-to say, the effect to confer any title upon a purchaser under it. It is true that, for this reason, the decree may not be regarded as void as against.the children of John Hall; yet; it would seem to me that a decree pronounced upon such a state of case, should not be construed Or held to confer upon, a child or a set of children, the character or condition of an heir or heirs. The mere- relationship of father and child can in no case confer the character- of heir. The relationship, whatever it may be, and- the possibility of ’ taking or recovering the estate of the ancestor, is essential. But in the case in question, .the fact was solemnly
The Court has expressed the opinion that, if the bill of sale was made to defraud the creditors of John Hall, the defendant, who was his son, is supposed by the law to hold the slaves, as heir, for the benefit of creditors; and this, the Coyirt says it understands to be the law of the land. No authority, however, is cited or referred to; and with much deference for the Court, I think the law is clearly and conclusively settled to the very reverse of the position. The cases of Gillispie vs. Gillispie’s Heirs, 2 Bibb, 91; Dale vs. Harrison, 4 Bibb, 65; Blight’s lessee vs. Atwell, 7 Monroe, 268, all seem to me to be, although not directly opposed to the position, yet to be inconsistent with it. But I marvel that the Court should have
“As to these, the grantor is adjudged still to hold the “ title; but this reservation in favor of these two classes of per- “ sons, is not such title in the grantor as can be transmitted by “ devise or pass by descent. As to the heir or devisee, the “ former fraudulent or unregistered grant is a bar to “ his taking any thing. For it would be absurd to say, “ that such grant is obligatory against the heir or devi- “ see, as to the crimes of the ancestor, and yet to say “ that, it is not obligatory to any beneficial purpose, and “ that, therefore, he took such title as can be sold.
“ Heneé in a suit against the heir or devisee, the for- “ mer can plead that he took nothing by descent, and “ the latter nothing by devise; and it cannot be replied “ that his ancestor, or testator, fraudulently conveyed “ an estate to another, with which the heir or devisee “ can be charged. ”
This passage seems to me to be conclusive in the present case, and to be as clear as language can make it, that, if the bill of sale from John Hall to Alfred J. Hall, was fraudulent as to creditors, there was no estate left in thd father which could be transmitted by descent to the son; and, therefore, that there was no estate transmitted to A. J. Hall, or the children of John Hall, by descent, which could be sold under the decree. But, if I am not under a strange misapprehension, the present opinion, although it maintains the position that, if the bill of sale was fraudulent as to the creditors of the maker of it, the title to the slaves passes to A. J. Hall by descent, for the purpose of conferring a title upon Warren, by virtue of his purchase; yet, to invalidate the
There is one other position taken in the opinion, upon which I beg leave to make a suggestion. The suit in chancery was originally instituted against John Hall and the surety, for the recovery of the debt. It was after-wards revived — not against A. J. Hall, one of the children, alone — but against all of them, as heirs at law of the ancestor, in the ordinary acceptation of the term, to reach any estate which might have come to their possession by the law of descents, by lawful means. It was not the intention of the complainant to proceed against A. J. Hall as the fraudulent holder, or vendee, of the estate of the debtor. He had been notified that the suit was revived against him with others, simply as lawful heirs; and he had been solemnly informed that the complainant expected to recover of McGruder alone. The execution issued, on the decree, against all as heirs; and, by the opinion, it is now held that, under a sale by virtue of
This, however, does not seem just. The suit and the whole proceeding, under such circumstances, could be but the means of circumvention, instead of the fail-means of litigating a disputed matter. The mere fact, that A J. Hall was sued as one of the children of John Hall, could not be sufficient to notify him that he was to be charged as a fraudulent vendee. I will close by a reference, on this subject, to the case of Monroe vs. Wilson, 6 Monroe, 123. There, the party was sued as executrix, and it was held that she could not be accountable, in such suit, as a fraudulent devisee. Many other cases might be presented to show that the proceeding should ever be sufficient to notify the antagonist party of its object. J- G. Lyle.
Response.
All the points presented in thfe petition and the cases therein referred to having been fully considered before this case was decided, the opinions then expressed remain unchanged, and a re-ai-gument is therefore deemed by the Court, unnecessary. But the character of the petition entitles it to a respectful response, which we here briefly subjoin.
First. Conceding, as the learned and candid counsel seems to have done, that the decree was not void, we cannot concur in the intimated opinion that it was nevertheless a nullity, and that therefore the sale under it was altogether ineffectual. None of the cases cited can, when applied to the facts of this case, authorize any such conclusion.
The suggestion that the heirs had no estate in Kentucky, imported only that the complainant believed that they had none, because he had no knowledge of any, and was, as should be presumed, made only to show the reason why he desired to make the foreign executor a party. And therefore, being, as we considered and still consider it to be, synonymous, in effect, with an allega
When one holds and claims in his own right, property which he must have acquired and held as heir or devisee, had he not attempted to evade the just claims, upon that property, of the creditors of his ancestor, by a pretended purchase from him, for a false, though ostensibly valuable, jconsideration, surely his liability as heir, to the extent of the value of such property, cannot be thus eluded by his own fraudulent pretence of purchase.— The law, as we understand it, will not be thus mocked
The case of Ralls vs. Graham et al. 4 (Mon., 120,) is perfectly consistent with the foregoing conclusion.
That case certainly cannot, when understood, be construed as intimating that an heir who is in possession of estate claiming it as his own under a void contract with his ancestor, may not be held responsible for it as heir, by a creditor, to defeat whose right the fraudulent contract was made. But it only decides that, when a stranger, who never could have held as heir, is in possession of property under a fraudulent contract prejudicial to creditors, a creditor of the fraudulent debtor must pursue the property in the hands of the fraudulent holder of it; and cannot, on the ground of the ancestor’s fraud, subject his heir, who did not acquire any interest in the property by descent, because the contract, though void as to the creditor, was nevertheless good and valid as between the parties and their representatives.
And this is as sound law, as it is plain justice. It would be certainly unreasonable to make an innocent and defrauded heir — merely because he has some of a fraudulent debtor’s blood in his veins — responsible for property which had been effectually withheld from himself by his ancestor’s fraud, and over which he has there
But, when the heir himself holds the property for his own use, or is beneficially interested in it, none of the reasons for the rule established in Ralls vs. Graham et al. apply; and there can be no reason for exonerating him from liability as heir, or for exempting the property so fraudulently held under the color of a purchase, from execution, upon a judgment against him, in favor of one of the very creditors to defraud whom the fraudulent color was given, and as to whom, therefore, it is as if it never was.
To such an heir, it certainly cannot be material whether the judgment had been obtained against him without litigating the question of fraud, or without giving him notice that the creditor .would ever attempt to subject to the satisfaction of his judgment, the- property conveyed to him, or to his use, by the debtor; for, as if can never be subjected so as to deprive him of the right to establish his title to- it, by proving that he acquired it fairly, he can never be taken by surprise, nor prejudiced, even though the levy of an execution upon it may be the first intimation to him that the creditor intends to impeach his claim to it. And we have no doubt that, ii the bill of sale from John to A. J. Hall, was fraudulent and void as to the creditors of the former, the slaves attempted to be passed by it were subject to sale under the fieri facias which was issued on the decree against the heirs of John Hall. That point has been often so adjudged, and was virtually so decided in the case of Harrison vs. Campbell, at this term of this Court.
It does, therefore, seem to us that our decision in this
Nor have we felt the criticism on the supposed inconsistency of deciding, as we did, that, if the bill of sale of the slaves to A. J. Hall was fraudulent, he might be considered as holding them as heir, so far as the creditors of John Hall were concerned, and of saying, as we also did say, that the slaves could not have been claimed by the executor or other heirs, here or elsewhere, because, as to them, the bill of sale was conclusive.
The difference between the cases is this: if the bill of sale was fraudulent as to the decretal creditor, then, as to him, A. J. Hall, not being able to hold the slaves as a purchaser, must be considered as holding them for the creditor’s benefit, and as fully subject to the decree against himself as heir, as he could have held them had the pretended contract of purchase never been made; but the bill of sale, though fraudulent as to John Hall’s creditors, being valid as to himself, and therefore as to his heirs, devisees and personal representative, A. J. Hall must, as to all of these, be considered as holding the slaves as a purchaser, and not as a co-heir. And, consequently, it cannot, as the opinion suggested, be material,'in this case, to know how these slaves would have descended, or been distributable; nor whether they might have gone to the heirs, or to the personal representative, of John Hall, by the law of, his domicil, had he possessed any available right to them, at the time of his death, which could have passed to his representatives, in their own rights.
We still think this distinction is very obvious, notwithstanding the counsel’s astonishment expressed at the suggestion of it in the opinion he has assailed as announcing new, inconsistent, and indefensible doctrines. Being, for ourselves, well satisfied that it contains nothing either new, inconsistent, or indefensible, we are not inclined to change it.
Wherefore, tie petition for a re-hearing is overruled,