American Net & Twine Co. v. Mayo

33 S.E. 523, 97 Va. 182, 1899 Va. LEXIS 26
CourtSupreme Court of Virginia
DecidedJune 15, 1899
StatusPublished
Cited by14 cases

This text of 33 S.E. 523 (American Net & Twine Co. v. Mayo) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Net & Twine Co. v. Mayo, 33 S.E. 523, 97 Va. 182, 1899 Va. LEXIS 26 (Va. 1899).

Opinions

Cardwell, J.,

delivered the opinion of the court.

This is an appeal from a decree of the Court of Law and Chancery of the city of Norfolk dismissing the bill of appellant, the American Net and Twine Company, a corporation, filed against B. Mayo and his wife, and John T. Mayo, their son, the purpose of which is to set aside two deeds executed by B. Mayo and wife to their son, John T. Mayo, whereby the latter acquired all of the real estate of which B. Mayo was seised and possessed at the time the deeds in question were executed. The bill alleges and charges that the deeds were not upon a consideration deemed valuable in law, but were executed with intent to hinder, delay, and defraud complainant, and that since the conveyances were made B. Mayo has no property out of which the judgment in favor of complainant against him can be made.

The two deeds in question were executed on the 20th day of October, 1896, during the pendency of the suit of appellant on the law side of the Court of Law and Chancery of the city of [184]*184Norfolk, in which the judgment in favor of appellant before referred to was obtained.

The defendants, B. Mayo and wife, answered the bill jointly. They admit the execution of the deeds to their son, but deny that they were made without consideration deemed valuable in law, or that they were made to hinder, delay, and defraud complainant.

The answer of John T. Mayo states that it is true that on the 20th day of October, 1896, and after the institution of the common law suit of complainant against B. Mayo-, B. Mayo conveyed, by two separate deeds to respondent, the real estate in the bill set out and described, and that respondent is the son of B. Mayo. Bespondent then denies that the conveyances were made by B. Mayo in anticipation that judgment would be recovered against him by the plaintiff in the common law suit, or with the object or intent on his part to prevent the plaintiff from realizing anything on the judgment, if obtained, from the property so conveyed to respondent, and that if B. Mayo had any fraudulent purpose in his mind in making the conveyances to respondent he (respondent) was not informed of such purpose, and did not unite in it. He further denies that the deeds in question were not upon a consideration deemed valuable in law or that the same were made to hinder, delay, and defraud the complainant.

The complainant replied generally to the defendants’ answers, and numerous depositions were taken for the complainant and the defendants, and the court below dismissed the bill, upon the ground that the evidence was not sufficient to sustain the charge that the deeds were not upon a consideration deemed valuable in law, leaving out of view the evidence adduced to show that the defendant, John T. Mayo, had knowledge of the fraudulent intent of the grantor, B. Mayo, in making the deeds in question.

The first question for consideration is, do' the pleadings put in issue, as to the defendant John T. Mayo, the fact, whether [185]*185or not the conveyances in question were made with the intent on the part of the grantor, B. Mayo, to hinder, delay, and defraud the appellant, and that the defendant, John T. Mayo, was privy to such fraud?

The averment of the bill as to fraud in the execution of the deeds follows the forms given by Barton in his Chancery Practice, and Sands in his Suit in Equity, where deeds are attacked on the ground that they were made without consideration deemed valuable in law, and with the intent to hinder, delay, or defraud the creditors of the grantor.

The averment is almost identical with that in the case of Herring et als. v. Wickham, decided by this court, and reported in 29 Gratt. 628. In that case there was no demurrer to the bill, but an answer only by Mrs. Wickham, denying the allegations of fraud, and disclaiming any knowledge on her part of the fraudulent intent of the grantor, yet the court in its opinion by Staples, J., after holding that the deed was upon a valuable consideration, marriage then being in law deemed a valuable consideration, said: “If it be conceded/therefore, that Mr. Wickham’s intention in making the settlement was to avoid payment of his debts, the question still arises, Did Maria E. Kersey (now Mrs. Wickham) have notice of that intention? ” and he proceeded to discuss that question at great length, holding that the evidence was not sufficient to fix upon Mrs. Wick-ham knowledge of the fraudulent intent of the grantor in making the deed of settlement under consideration. It, therefore, clearly appeal's that the court in that case considered that that question was put in issue, otherwise, after holding that the deed was upon a consideration deemed valuable in law, the end of the case was there reached, and the court would not have gone into a careful consideration of the evidence as to whether Mrs. Wickham was a privy to the fraud alleged in the bill.

Fraud must be charged, and this should, in general, be done by setting forth the facts which constitute the fraud. A mere [186]*186allegation imputing motives of fraud is not sufficient. But an averment of an intent to delay, hinder, or defraud creditors is not an averment of a conclusion of law, but of an essential fact. Fraud may be sufficiently averred by setting forth the particular manner in which the act was done, and the particular end and design to be accomplished. Where the facts thus stated show that a fraud was designed and perpetrated, that may be a sufficient averment of the fraud, although the bill does not state the conclusion which the law will draw that the act was fraudulent. Bump on Fraud. Con., p. 547.

The averment of the bill in this case is that the grantor, B. Mayo, conveyed by the two deeds in question, all of his property to his son, leaving nothing out of which complainant could make its debt, and that the deeds were not only without consideration deemed valuable in law, but were executed with intent to hinder, delay, and defraud the complainant.

blow, the averment that there was no consideration must necessarily relate to the grantee as well as to the grantor, as the consideration could alone come from him, and when that averment is followed immediately by the conjunction “ but,” it seems that it would have no real sense, unless this word referred also to the same persons as the word “ consideration ” refers to.

A deed is the method by which the title of real estate is transferred from one person to another, and there must be a grantor and a grantee, and where the charge is that the deed was executed with intent to defraud; that it is as a part of a scheme to defraud, it seems to necessarily follow that the charge of fraud and the manner in which it was perpetrated refers.to the grantee as well as to the grantor, and in this case the grantee, John T. Mayo, so understood the averments of the bill, as he not only did not demur to the bill, but specifically denied that he had knowledge of the fraudulent intent of his father in conveying his property to him, nor did he object to any question asked of the witnesses, which went to prove that he did participate in the fraud alleged.

[187]*187A bill of this character must at least tender an issue which can be met by a denial, and by testimony, and direct the court to an inquiry that is definite and intelligible, but general certainty is all that the courts of equity require in the statements of facts in a bill.

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Cite This Page — Counsel Stack

Bluebook (online)
33 S.E. 523, 97 Va. 182, 1899 Va. LEXIS 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-net-twine-co-v-mayo-va-1899.