Ayars State Bank v. Standley

246 Ill. App. 296, 1927 Ill. App. LEXIS 282
CourtAppellate Court of Illinois
DecidedOctober 31, 1927
DocketGen. No. 8,097
StatusPublished

This text of 246 Ill. App. 296 (Ayars State Bank v. Standley) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ayars State Bank v. Standley, 246 Ill. App. 296, 1927 Ill. App. LEXIS 282 (Ill. Ct. App. 1927).

Opinion

Mr. Presiding Justice Shurtleff

delivered the opinion of the court.

In this cause we have been compelled to search the record to ascertain who were the parties defendant in the circuit court and appellants in this court. The appeal is subject to dismissal for failure to present an abstract under the rules.

Appellees, having severally recovered judgments against appellants Oliver Standley and Pearl Standley in the circuit court of Shelby county, on October 17, 1923, for the total sum of $10,000.55, and executions issued upon said judgments having been returned “not satisfied,” presented their bill of complaint to that court to set aside a conveyance by quitclaim deed made by appellants Oliver Standley and Pearl Standley, husband and wife, purporting to convey to appellant J. E. Dazey, then president of the First National Bank of Findley, eighty acres of land, with the crops thereon, in Shelby county. It was charged and proven that Oliver Standley owned an undivided one-half interest in said lands; that Pearl Standley owned a life estate in the other undivided one-half interest, and that the eighty acres was free from all incumbrances, and charged that the lands were of the value of sixteen thousand dollars. The deed stated a purported consideration of one dollar only and was filed for record about ten minutes before the entry of the judgments. Appellants Standleys lived upon the lands and, with eighty acres adjoining which were leased, worked the same as a farm, upon which, at the time of said conveyance, there was a considerable amount of corn standing “not shucked,” and Oliver Standley had a considerable number of horses, a tractor, stock and farm tools with which he farmed and worked said lands. Later, on March 14, 1924, appellant Oliver Standley presented his petition to the United States District Court for the Eastern District of Illinois, praying to be adjudicated a bankrupt. In this petition appellant scheduled indebtedness in addition to said judgments, a personal property tax of $27 and $55.40 of indebtedness only. He listed property — household goods — of the value of $35, one cow and three calves of the value of $50, and two hundred bushels of corn of the value of $100, all of which was claimed as exempt property, and in addition appellant scheduled a section of land known as section five, further described as being in Chicot county, Arkansas, subject to an incumbrance of $8,300 and as of the value of $17,300. This land, purporting to have been conveyed by appellant J. E. Dazey to Oliver and Pearl Standley, on October 17, 1923, for a purported consideration of one dollar, was presented to this suit and to the bankruptcy court as the consideration which appellant Dazey pretended to give to the Standleys for the eighty acres of land in Shelby county. The deed had never been recorded. It purported to have been acknowledged before one C. E. Coventry, who was an assistant cashier in Dazey’s bank, on said 17th day of October, 1923. The United States District Court refused to adjudicate Oliver Standley as a bankrupt on the ground of fraud. One J. J. Baker was appointed trustee in bankruptcy by that court, and the trustee has filed a supplementary bill in this suit and now becomes the appellee in this cause.

The decree found that the conveyance of the Standley land to appellant Dazey was without consideration and. was made by appellants with the fraudulent intent of hindering and delaying the appellees as judgment creditors in the collection of their debts, and that appellant Dazey had knowledge of said fraudulent purpose and participated in the fraud. The decree further found that the Arkansas land was of no value and set aside the conveyance by the Standleys to Dazey as to the judgments, subject to the homestead right of Oliver Standley and Pearl Standley in the eighty acres of land in Shelby county. Appellants have appealed.

It is contended by appellants that there was a good and valid consideration paid by Dazey for the Standley land, and that Dazey was not a party to and had no knowledge of any fraudulent intent to defraud the appellees. It is insisted by appellants that the record does not establish a fraudulent transaction. We have read the testimony carefully and examined the exhibits and given both due and ample consideration. There is no contention about the law applicable to the case. The lands in Arkansas were “cut over,” stump lands, not situated upon a public highway, having no earning value, incumbered by a mortgage to the amount of $8,300 and in which appellant Dazey and his grantor, one Vennum, connected with Dazey in the bank, neither had any legal or equitable title. It was shown by voluble letters, purporting to have been written by Dazey to Standley shortly before the transaction, that Standley should under no consideration think of making the trade unless Standley’s three sons, all of whom were engaged in other farming operations or occupations, would join him, and he provided for a large sum of money to erect buildings, saw mills and development improvements for which purposes Dazey proposed to loan Standley a small portion of the requisite sum, namely, five thousand dollars. Standley and Dazey lived only about ten miles from each other and were connected by telephone, yet they appear to have written letters to each other of great length in regard to this transaction shortly before October 17, 1923. The envelopes nowhere appear. Dazey appears by the letterheads to be president of the First National Bank of Findley and an attorney at law. Vennum was cashier of the bank and Coventry was assistant cashier. One letter appears under date of August 20, 1923. In the letter Dazey states: “I want you to fully understand that I would not advise you to make a trade for this land unless yourself and boys are to move on it and go to work developing it, and I will not make a loan of $4,800 a section unless it is understood that you are to move on it as above stated. I realize that it is some task to mpve and get settled and that I would not require you to do so under one year.” The substance of this statement is repeated three or four times in this letter. Under date of October 12,1923, Dazey purports to write Standley another letter acknowledging a purported letter from Standley in which Standley has agreed to trade lands. In this letter Dazey agrees to loan Standley five thousand dollars and two or three times it is reiterated: “I have explained to you that you do not get the right to the hickory timber that is in litigation, and you are getting the right to redeem. I wanted you to know just how it all stands, and I agree to furnish $5,000.00 for that purpose. I want you to know just what you are getting, as I told you without your labor I do not think this would be a good trade for you, but even just yourself with what nigger help you could hire I then think it would be a good trade,” etc. The letters pretend to state that Vennum owns the land and if the' trade is made Dazey will have to purchase the lands from Vennum. As to Vennum’s title to the lands in question, the Jackson-Vreeland Land Corporation on December 31,1919, conveyed said section five, with other lands, to Mnnsell and Asians, subject to a mortgage for $20,400, which grantees assumed and agreed to pay. On April 10, 1920, Munsell and Askins conveyed said section five to E. M. Vennum, subject to a mortgage for $4,800. In April, 1922, upon a foreclosure by the Bank of Saginaw, Michigan, against the JacksonVreeland Land Corporation upon the mortgage mentioned, the title to all of section five had passed to the Bank of Saginaw by a commissioner’s deed, and said lands were owned by the Bank of Saginaw on October 17,1923.

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246 Ill. App. 296, 1927 Ill. App. LEXIS 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ayars-state-bank-v-standley-illappct-1927.