140 Mich. 677 | Mich. | 1905
Defendant Lucy is the wife of complainant, and defendant Charles E. is their eldest son. In September, 1898, complainant commenced the manufac
To sustain complainant’s claim that from the beginning he has owned the property and business of the Detroit Pattern Works, it is necessary that we should find that he owned the same at its inception, and that he did not consent to its transfer to the corporation, in which he had no interest. In my judgment this record warrants our saying that from the beginning the property and business belonged to defendant Lucy, and that complainant consented to its transfer to the corporation. I will proceed to state briefly my reasons for each of these conclusions.
Respecting the ownership of the business at its inception : Ordinarily we may determine the ownership of a business by looking at some distinct arrangement between the parties interested. In this case, no such distinct arrangement appears to have been made. We nrast infer that ownership from the ownership of the capital contributed, and this is the test complainant asks us to apply. The governing question is this: Who owned the $1,050 which constituted substantially all the original capital ? This $1,050, which unquestionably had once belonged to complainant, was at the time this business was started deposited by him in the City Savings Bank to the credit of defendant Lucy. The book which evidenced this deposit was placed in her keeping. She signed all the checks by which the deposit was withdrawn. Complainant testified that this deposit was made in his wife’s name in order to secure her for the $1,500 loan heretofore referred to. I am forced to discredit this testimony. I am satisfied that the $1,500 loan was not made or contemplated at the time complainant made this deposit in his wife’s name.
Complainant insists that, notwithstanding his making this deposit in his wife’s name, the money still remained his under the authority of Peninsular Sav. Bank v. Wineman, 123 Mich. 257. That decision holds “that a mere deposit in the name of another, unaccompanied by acts or declarations indicating an intention to donate the
I think it may also be said that, actuated by this same motive, viz., the motive of placing his property beyond the reach of creditors, complainant later not only consented, but advised that the property should be transferred to a corporation in which it should clearly appear that he had no interest. It is true that he testifies that he knew nothing of this transfer. I discredit this testimony, not only because it is contradicted by the testimony of his wife and son, but because it seems to me highly improbable that this circumstance happened without his knowledge.
For these reasons I think, as I have heretofore stated, that complainant never owned the property and business in controversy, and that he consented to its transfer to a corporation in which he had no interest. I have no doubt that there was an understanding, as there always is when a husband transfers to his wife property to defraud creditors, that he should continue to have an interest in said property and participate in the profits of the business. If we could enforce this understanding, complainant would be entitled to relief; otherwise, he would not. No princi
It results from this reasoning that, in my judgment, the decree of the court below should be reversed, and a decree entered here dismissing complainant’s bill, with costs of both courts.