Bates v. Simmons

22 N.W. 335, 62 Wis. 69, 1885 Wisc. LEXIS 117
CourtWisconsin Supreme Court
DecidedJanuary 13, 1885
StatusPublished
Cited by10 cases

This text of 22 N.W. 335 (Bates v. Simmons) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bates v. Simmons, 22 N.W. 335, 62 Wis. 69, 1885 Wisc. LEXIS 117 (Wis. 1885).

Opinion

Cassoday, J.

It is claimed that the court excluded evidence which would have shown that the assignment was made with the intent to defraud creditors. The only question excluded was one put to the assignor as to how much board his daughter (one of the preferred creditors) was paying him. This clearly related to the time of the trial, which was more than a year after the assignment, and hence could have no. bearing as to the intent with which the assignment was madé, and was therefore properly excluded as immaterial. The result of this ruling was a colloquy betweón the court and counsel for the plaintiffs, in which the latter disclaimed all expectation of showing that any of the scheduled “creditors were not bona fide creditors,” and the court, among other things, stated that “the intent to defraud would only be determined from a preference of creditors who had no claim, or beyond a just claim, against the assignor.” This is urged as error. Assuming that an intent tó defraud might have been inferred from some other fact or circumstance than a mere preference of a claim wholly or in part fictitious, [73]*73yet, in the case of a general assignment by an insolvent debtor, it would be so rare and exceptional that we think that that good faith always due to the court from counsel required the latter to disclose the nature of such exceptional fact or circumstance before it can be fairly claimed that the court intended to exclude evidence tending to prove it. Erom the whole colloquy we are inclined to think that the court merely intended to inform counsel that an intent to defraud creditors could not be inferred from the mere fact that a general .assignment had been made by an insolvent debtor for the benefit of his creditors, nor from the mere fact that in such an assignment the assignor had preferred some of his creditors to others. This was undoubtedly the law. Lord v. Devendorf, 54 Wis. 496; Ball v. Bowe, 49 Wis. 495.

There was no evidence that any portion of any of the preferred debts were fictitious. The mere fact that some of the assignor’s preferred debts had previously been secured by mortgage on his wife’s real estate did not preclude the court from holding that there was no intent to defraud in giving such preference. 49 Wis. 498. Such preferred debt was, nevertheless, the debt of the assignor, and not the debt of his wife.

It is claimed that the assignment was intentionally made before the passage of the bill (ch. 349, Laws of 1883) then pending in the legislature forbidding preferences, so as to prevent the assignor’s property from being equally distributed among his creditors under that act. The fact remains that, at the time of making the assignment, the assignor had the legal right of preferring some of his creditors to others. Having such right at the time, was he precluded from its exercise by his knowing that the legislature contemplated so changing the law as to make the act illegal? To answer in the affirmative would be giving effect to the law several weeks before its passage. On the contrary, a legal right, [74]*74exercised strictly in accordance with the law in force at the time, does not become illegal merely by purposely doing it then, instead of postponing its exercise to a time when the law will be changed so as to make it illegal. An illegal motive cannot justly be ascribed to the proper exercise of a legal right. Certainly, there is no lack of authority in support of the proposition. South Royalton Bank v. Suffolk Bank, 27 Vt. 505; Heywood v. Tillson, 75 Me. 225; S. C. 29 Alb. L. J. 27, and cases there cited.

It is claimed that the form of the assignment is peculiar, in that it is made to the assignee, “his heirs, executors, administrators, and assigns,” instead of running to his successors and assigns. But this, instead of being a “ peculiar ” form of transfer, is the usual form where the assignment includes real estate. Burrill on Assignments, § 133. The habendum clause in such case is substantially the same. Id. § 140. The assignment is in this respect, as it may properly be, even if not essential, a deed of conveyance of the absolute title, with a declaration of trust. Id. § 127. There have been assignments made in separate instruments, and held valid. Id. § 128; Norton v. Kearney, 10 Wis. 443. The use of the words “ heirs and assigns” was, undoubtedly, to give effect to the assignee’s conveyance, although it may have been unnecessary. Angell v. Rosenbury, 12 Mich. 266. The contingency suggested as to the death of the assignee before the execution of the trust, leaving minor or nonresident heirs, is not here involved, and hence is not here considered.

It is claimed that the assignment is void because the as-signee’s bond runs to “A. E. Richter, clerk of the circuit court of the county of Fond du Lac,” etc. This, we think, was a substantial compliance with the statute requiring it to be “executed to the clerk of the circuit court of the county, by his name of office, as obligee.” Sec. 1694, R. S. The insertion of the word “as” before the word “clerk” might [75]*75have been a more apt expression, but its omission is of no more significance than the omission of the same word before “administrator” in a bond given by the latter; as to which it has been held that the omission is immaterial. Kasson v. Estate of Brocker, 47 Wis. 86.

The mere fact that the assignor’s affidavit to the list of his creditors, required by sec. 1697, R. S., starts out in the first person, and then speaks of the “ list of Ms creditors,” in the language of the statute, instead of saying “my creditors,” was at most a mere clerical error, obvious upon the face of the record. The section declares that “ no mistake therein shall invalidate such assignment,” and we are indisposed to enforce a literalism not required by the statute. Steinlein v. Halstead, 52 Wis. 289. Haben v. Harshaw, 59 Wis. 403, cited by counsel, is clearly distinguishable. There the assignment mentioned two distinct classes of property, whereas the list and affidavit only referred to one, and hence it was held that, presumptively, the list was incorrect.

The mere fact that after the assignment the assignor remained in the store as an employee under the supervision of the assignee, was not conclusive evidence of fraud in the making of the assignment. Hollister v. Loud, 2 Mich. 309.

It is claimed that the assignment is void upon its face because it purports to assign all and singular the lands, goods, debts, property, effects, etc., of every description, belonging to the assignor, or in which he had any right or interest, “except what are exempt to me by the laws of the state of Wisconsin, the same being more fully and particularly enumerated and described in an inventory thereof to be filed,” etc. Manifestly, the property thus to be “ more fully and particularly enumerated and described ” in the inventory was such as was thereby transferred and conveyed to the as-signee, and not such exempt property as was therein excepted from the operation of the assignment. It is only [76]*76the property actually assigned of which any schedule is required to be made. The statute provides for no schedule or inventory being made of the exempt property, but only that which is transferred by the assignment. Such description of the property assigned iu a schedule annexed to the assignment, and therein referred to, has always been the usual method whenever the property is considerable in amount, or consists of a variety of particulars. Burriil on Assignments, § 134.

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Cite This Page — Counsel Stack

Bluebook (online)
22 N.W. 335, 62 Wis. 69, 1885 Wisc. LEXIS 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bates-v-simmons-wis-1885.