Bank of Columbia v. Walker

82 Tenn. 299
CourtTennessee Supreme Court
DecidedDecember 15, 1884
StatusPublished
Cited by1 cases

This text of 82 Tenn. 299 (Bank of Columbia v. Walker) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Columbia v. Walker, 82 Tenn. 299 (Tenn. 1884).

Opinion

Wilson, Sp. J.,

delivered the opinion of the court.

The facts in these causes are brief and undisputed, and the acumen and learning of counsel have singled out the vital question in the contest, and directed, in argument, our consideration to it.

John A. Walker and his wife, Martha L., were married in Greene county, Alabama, the place of their residence, in April, 1851. They continued to live in that- State until 1869, when they moved to Columbia, Maury county, Tennessee, where they have since resided.

Under the will of her father, Charles W. Barry, Mrs. Walker was entitled for life, with remainder to her children, to an undivided interest in his real estate and to some of his personalty. By proceedings instituted in the chancery court in the county of their residence, the real estate of her father was sold for partition, and her interest and that of her children in remainder, realized $3,696.

This sum, John A. Walker, under the orders of the chancery court of that county, rendered in accordance with the laws of Alabama, was permitted to receive, by executing a bond in the penalty of $4,000, conditioned to account for the same, without interest, to the children of his wife at her death. He executed the bond required, and received the money. He also [301]*301received an additional sum of $35U from the personal estate of her father, belonging to her for life, with remainder to her children.

By the will of her mother, executed in 1855, Mrs. Walker was entitled to something over $4,000 in her estate, and as an heir of her sister, Elizabeth J. Barry, she was entitled to receive from her estate about pi,600. The shares belonging to her in the-estate of her father, her mother, and her sister, were received by her husband while they were residents of Alabama, and converted by him' to his own use while living there.

By the laws of Alabama, in force at the time of their marriage, and subsequently amended and carried into the Code of that State during their residence therein, “all property of the wife held by her previous to the marriage, or which she may become entitled to after the- marriage in any manner, is the separate estate of the wife, and is not subject to the payment of the debts of the husband.”

It is further provided that property belonging to the wife vests in the husband as her trustee, who has the right- to manage and control the same, and he is not required to account to the wife, her heirs, or her legal representatives for the rents, income and profits thereof, but such rents, income or profits are not liable for his debts. The husband and wife may jointly sell and convey her property in the mode pointed out in their statutes, but the proceeds are to be the separate estate of the wife, and they cannot contract with each other for sale of any property.

[302]*302It is also provided that the husband has the power to receive property coming to his wife, or to which ■she is entitled, and his receipt therefor is to be taken as a full discharge in law and equity. The wife is also given the power to dispose of her property by will, and she may, by next friend, file a bill in chancery to call her husband to account as the trustee, and to have him removed upon proof that he is squandering or wasting her estate. These provisions •of the laws of Alabama, with others bearing upon the relations of husband and wife as to her property, will be found in the Alabama Code, sections 1981 to 1997 inclusive, which appear to be an adaptation for the most part of the Acts of 1848-49-50, .enacted by the General Assembly of that State.

It is. obvious, under these provisions of the law of Alabama, that all the property or means of Mrs. Walker, coming to her from the sources stated, was her separate estate, and that her husband, in receiving them, did so as her trustee under the law of their domicil. This is not denied. It must also be •conceded that in converting them absolutely to his own use in that State, if he did so convert them, he thereby became her debtor, and had the right to •convey his own property to her, or to a trustee for her use, to secure the payment of his debt to her, •and it has been so expressly held by the courts of Alabama: Davidson v. Lanier, 51 Ala., 318. This case holds that the husband does become the debtor of the wife by the reception, use and conversion of her statutory separate estate, and that he may purchase [303]*303property and take the title in his wife, and that equity will uphold the transaction as against his creditors. .

So, also, it is held in that State that she cannot be bound as tire husband’s security for the payment of his debts, or mortgage her estate for that purpose: Davidson v. Lanier, 51 Ala., 318; Wilkinson v. Cheatham, 45 Ala., 337; Cowles v. Marks, 47 Ala., 612. And in Worthington, Adm’r, v. Faber, 52 Ala., 45, it was held that if the husband converts the wife’s statutory separate estate he- becomes indebted to her to the amount used, and although insolvent, and largely indebted, may secure such debt by a mortgage of property to a trustee for her, and the conveyance, if made bona fide, is valid against the creditors of the husband.

It seems that the husband did convert to his own use the separate statutory estate of his wife, while they were residents of Alabama, and we hold, under the provisions of the statutes of that State, and the decisions cited, that he thereby became in that State her debtor, and that she had the right there to receive a conveyance of his property to..secure the payment of her debt against him, and that her title to the property thus conveyed, if made. bona fide, would in that jurisdiction be upheld against his creditors.

It appears, however, that Walker, although possessed of small means at the date of his marriage, was a provident and prudent business mau, and largely increased his estate; for when he and family removed to Maury county, in this State, in 1869, he brought with [304]*304him some personal effects and about $34,000 in money. This sum he deposited in his own name in the Bank of Columbia. He engaged in business and checked on this sum, and made additional deposits in the bank. In the meantime he purchased'' the house and lot in Columbia and other property in controversy, except some feather beds and other household property, taking the title to himself.

He finally engaged in the mercantile business with J. M. Larkin, under the firm name of J. M. Larkin & Co. Larkin committed suicide, and the firm was found to be largely in debt and insolvent. In this situation Walker, as the surviving member of the firm, on March" 19, 1878, conveyed all the assets-of the firm to W. F. Moore, in trust for the benefit of its creditors.. On the same day he conveyed all of his individual property subject to execution to H. B. Titcomb, in trust to secure first payment of the four thousand and odd dollars due his children at the death of his wife, under the will of their grandfather, and for which he had given bond in the courts of Alabama, and also his wife, in the aggregate sums absolutely belonging to her in Alabama, and received and used by him, amounting to' over $5,000. . Directions were given in the conveyance as to the disposition of the property conveyed, in so far as his wife and children were interested, and an application of the surplus, if any, pro rata to his other debts.

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Bluebook (online)
82 Tenn. 299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-columbia-v-walker-tenn-1884.