Balz v. Nelson

72 S.W. 527, 171 Mo. 682, 1903 Mo. LEXIS 37
CourtMissouri Court of Appeals
DecidedFebruary 18, 1903
StatusPublished
Cited by25 cases

This text of 72 S.W. 527 (Balz v. Nelson) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balz v. Nelson, 72 S.W. 527, 171 Mo. 682, 1903 Mo. LEXIS 37 (Mo. Ct. App. 1903).

Opinion

MARSHALL, J.

This is a bill in equity to declare fraudulent and void and to cancel two deeds to certain real estate in the city of St. Louis, one from Neis Nelson and Sophie, his wife, to her sister, Emma Decker, and the other from Emma Decker to Sophie Nelson, and thereby to divest the title to said real estate out of Sophie Nelson and leave it in Neis Nelson, as it was before said deeds were made, and to have the land sold to satisfy a judgment in favor of the plaintiffs and against Neis Nelson. The circuit court entered a decree as prayed, and the defendants appealed to the St. Louis Court of Appeals. That court transferred the case to this court, on the ground that title to real estate was involved and hence this court alone had appellate jurisdiction. [Balz v. Nelson, 86 Mo. App. 374.]

The case made is this: In 1884 Sophie Nelson was the wife of William Kleddick. He died and she received two thousand dollars life 'insurance. She then married Nelson, and in 1885 she loaned him $1,000. About two years thereafter she sold some real estate she owned before her marriage to Nelson, and received therefor $1,350, and this with the remaining $1,000 insurance money, she also loaned Nelson. They both say he verbally agreed to pay her eight per cent interest, but he never did so. They both further say there was no note or other evidence given for the money borrowed, and no time specified when he should repay her. But they say he ‘£ promised if he got into any trouble he would protect her.” She made no demand on him for the interest, nor for the loan, nor for [686]*686security or protection, until after the cyclone which struck St. Louis on May 27, 1896, and which damaged 'his property to the extent of about $3,500, and he paid no attention to that demand, and she did not then further. insist. About four months after that time he was building a house, and through his negligence the plaintiff’s child was killed. On January 16,1897, the plaintiffs began suit against him for five thousand dollars damage for the death of their child. Three days after this suit was begun and after the summons had been served and after she knew of the suit, he and his wife conveyed three parcels of land that stood in his name on the records to her sister, Emma Decker, and she conveyed the same to Mrs. Nelson. The consideration expressed in these deeds was nominal. Their deed to Emma Decker was immediately recorded, but her deed to Mrs. Nelson was not recorded until November 19, 1897. In the meantime on September .1, 1897, and before the judgment in favor of the plaintiffs was rendered and before the deed from Emma Decker to Mrs. Nelson was put upon record, Emma Decker made a quitclaim deed to Neis Nelson for a portion of one of the tracts or parcels of land, and he sold it to an innocent third person for $4,100. Both Neis Nelson and Sophie Nelson testified that he had no other property than that covered by the deed to Emma Decker, and he admitted that for six years prior to the date of the trial of this cause, which was on May 15, 1899, he had done no work. Emma Decker acted in the matter simply to oblige her sister and brother-in-law. She paid nothing and received nothing for the land. The Nelsons say the conveyances were made in pursuance to his promise that “if he got into trouble, he would protect her,” made at the time she loaned him the money. Thereafter, on January 4, 1899, the plaintiffs recovered judgment against him for $600, and it remained unsatisfied. The plaintiffs claim that the conveyances were fraudulent and void and intended to hinder, delay and defraud them as creditors of Neis Nelson, and that while an insolvent has a right to prefer any of his [687]*687creditors, still a conveyance that was intended to hinder, delay and defraud creditors is void even if made to one who is a bona fide creditor, if the creditor knew the conveyance was intended to defraud the grantor’s creditors and if the creditor participated in the fraud, and that even conceding that the $3,350 in money was a loan and not a gift from Sophia to Neis Nelson, still the deeds in question here were intended to defraud his creditors and not as a preference to Mrs. Nelson. The trial court found the deeds to be fraudulent, and entered a decree for the plaintiffs, and the defendants appealed.

I.

The primary question in this case is whether this court has jurisdiction.

It is a bill in equity to declare fraudulent and void the deeds of Neis and Sophie Nelson to Emma Decker, and from Emma Decker to Sophie Nelson, and for an order of sale of the real estate to satisfy the plaintiffs’ judgment. Those deeds are muniments of title. They constitute the public record which declares to the world that the title is in Sophie Nelson. Without them, the title would in fact and according to the record be in Neis Nelson. The judgment to be rendered, if the plaintiffs succeed, will therefore strike down and cut out, root and branch, these muniments of title, and the effect of a judgment in plaintiff’s favor will be to divest the title out of Sophie Nelson and revest it in Neis Nelson. The fact that after this is done the land can-be sold as the land of Neis Nelson to satisfy the plaintiffs’ judgment, does not change the character of the action nor take out of the case the main issue in controversy, to-wit, the question whether the land belongs of right, as to these creditors, to the wife- or the husband, nor does the fact that if the husband should pay the plaintiffs’ judgment and thereby take away the plaintiffs’ right to question or controvert the title- that is now in Mrs. Nelson, affect the matter. No such issue is raised, and no such condition presented in this case. [688]*688The only controverted issue is over the title. The subsequent sale of the land will follow of course if the deeds that vested the title in Mrs. Nelson are set aside and the title is thereby revested in Neis Nelson. The title to real estate is thereby directly and necessarily involved in this case, and therefore the appellate jurisdiction is in this court, and not in the Court of Appeals. [Price v. Blankenship, 144 Mo. 1. c. 209; May v. Trust Co., 138 Mo. 275; Hanna v. Land Co., 126 Mo. 9; Bank v. Ins. Co., 145 Mo. 127; Edwards v. Railroad, 148 Mo. 1. c. 516.] See, also, Beland v. Brewing Assn., 157 Mo. 593, where the suit was to cancel a deed of trust after the debt was alleged to be paid; Crothers v. Busch, 153 Mo. 606, where the suit was to set aside a deed of trust on the ground of fraud; Truesdale v. Brennan, 153 Mo. 600, where the suit was to have a deed of trust declared to be entitled to priority over a deed of trust that was recorded before the former; State ex rel. v. Rombauer, 124 Mo. 598, where the suit was to set aside a judgment of condemnation of the land.

If the suit was simply to establish or enforce a special taxbill, or a mechanic’s or vendor’s lien or any other kind of a lien, the title to real estate would not be involved. [State ex rel. v. Court of Appeals, 67 Mo. 199; Corrigan v. Morris, 97 Mo. 174; Bobb v. Wolff, 105 Mo. 52; Syenite Granite Co. v. Bobb, 97 Mo. 46; Baier v. Berberich, 77 Mo. 413; Bailey v. Winn, 101 Mo. 649.] And the reason is that in all such cases the title is necessarily conceded to be in the defendant, for otherwise the plaintiff would not be entitled to a lien against the land in that suit, and therefore no judgment that could be rendered in the case could divest the title out of the defendant. The result of the establishment of the lien on the land and the sale of the land to satisfy the judgment might be that the defendant would lose the land, but the same is true in every case of a judgment against one who owns land.

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Bluebook (online)
72 S.W. 527, 171 Mo. 682, 1903 Mo. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/balz-v-nelson-moctapp-1903.