Beam v. Farmers & Merchants Bank

1926 OK 670, 249 P. 325, 121 Okla. 164, 1926 Okla. LEXIS 92
CourtSupreme Court of Oklahoma
DecidedSeptember 14, 1926
Docket16776
StatusPublished
Cited by7 cases

This text of 1926 OK 670 (Beam v. Farmers & Merchants Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beam v. Farmers & Merchants Bank, 1926 OK 670, 249 P. 325, 121 Okla. 164, 1926 Okla. LEXIS 92 (Okla. 1926).

Opinion

LESTER, J.

For convenience the parties to this action will be referred to as they appeared in the court below.

The plaintiff in its petition stated and alleged that on the 3rd day of April, 1923, the plaintiff recovered judgment in the district court in and for Ellis county, state of Oklahoma, against the defendant, Joshua P. Beam, for the sum of $449.23, with interest thereon from the first day of March, 1922, at a rate of 10 per cent., and also the additional sum of $40 as attorneys’ fees, and costs of said action. Said judgment was rendered on a promissory note made and executed on the 28th day of February, 1920, which note was signed by said Joshua P. Beam and other parties. Plaintiff also alleged that on the 28th day of February, 1920, when said note, upon which said judgment was rendered, wa^ executed by the defendant Joshua P. Beam, the said defendant was then owner of certain real estate situated in Ellis county, state of Oklahoma. That on the 21st day of June, 1921, after the said note was made by the defendant Joshua P. Beam and others to the plaintiff herein, the said defendant Joshua P. Beam, for the purpose and with the intent to hinder, . delay, and defraud his creditors, including the plaintiff, conveyed all of the said property by a warranty deed to his wife, the defendant Maude M. Beam, for the colorable consideration of $3,000, but with no actual consideration whatsoever.

It was further alleged in the instant case by the plaintiff “that the defendant Maude M. Beam, wife of the said Joshua P. Beam, knowingly and with fulb notice of the fraudulent intent of the said Joshua P. Beam to hinder, delay, and defraud plaintiff, became a party to the said fraudulent conveyance and transaction, and to the efforts of said defendant, Joshua P. Beam, to hinder, delay, and defraud the plaintiff by reason of the said fraudulent conveyance.”

Plaintiff further alleged “that the plaintiff in its original action against the defendant, Joshua P. Beam, caused an execution to be issued on its said judgment against the said Joshua P. Beam, directed to the sheriff of Ellis county, which execution commanded said sheriff to levy upon and sell any property of the said Joshua P. Beam found within Ellis county subject to such levy and sale; Uiat thereafter said sheriff of Ellis county returned said execution nndorsedl with his proceedings thereunder, showing that no property of the said Joshua P. Beam could be found in said Ellis county. That thereafter another execution was executed and directed to the sheriff of Osage coua *165 ty, and thereafter the sheriff of Osage county duly returned the said execution, showing by his indorsement of his proceedings thereunder that no property of the said Joshua P. ¿Beam, subject to execution, could be found in Osage county. Plaintiff also alleged that another execution was issued on the 23rd day of July, 1923, directed to the sheriff of Ellis county, Okla., and that said sheriff levied upon certain personal property of the said Joshua P. Beam, and from the proceeds thereof paid the court costs, amounting to $18.80.

The defendants, Joshua P. Beam and Maude M. Beam, filed their answer, in which they denied that said property was fraudulently conveyed by Joshua P. Beam to Maude M. Beam. A trial was had to the court, and the court found the issues in favor of the plaintiff and against- the defendants. ' Thereafter a motion for a new trial was filed in said cause, and said motion was overruled and judgment was entered in said cause in favor of the plaintiff therein, and the defendants prosecute this appeal to reverse said judgment.

The defendants urge that the said cause should be reversed for the following reasons :

(1) That the judgment is not supported by sufficient evidence.

(2) Denial by the court of a trial by a jury when demanded by defendants.

We will take up each of these propositions and discuss them -in the order named.

We have read the entire record containing the evidence relating to the alleged fraudulent transaction between Joshua P. Beam and and his wife, Maude M. Beam. Each testified in said cause that about 20 years prior to the transfer of the property by the defendant Joshua P. Beam to his wife. Maude M. Beam, the latter loaned to her husband, Joshua P. Beajp, $3,450 for the purpose of enabling said Joshua P. Beam to attend a medical school, and that the said money so loaned said Joshua P. Beam was obtained by the defendant Maude M. Beam through the sale of her real and personal property, which property was owned by Maude M. Beam in her own name. Certain deeds were introduced in evidence which were made and executed by Maude M. Beam at the time she sold said property, and the consideration expressed therein was greatly at variance with the amount that Mrs. Beam claimed to have received for the property at the time she disposed of the same. It was further shown that- from the time Mrs. Beam claimed to have loaned the money to her husband until the transfer by the husband to Mrs. Beam of property involved herein Joshua P. Beam did not at any time make any payment on the loan that he had obtained from Mrs. Beam. It was further shown by the evidence that after the property involved in this action was transferred by Joshua P. Beam to h's wi'e, he continued to collect rents thereon, and in a very large measure handled the property as if no transfer had been made by him to his wife. It was further shown in the evidence that within a day or two after the said Joshua P. Beam had transierred his property to bus wife he withdrew all the money that he had on deposit at the plaintiff’s bank and turned the same over to the- defendant Maude M. Beam.

Section 5271, C. O. S. 1921, reads as follows :

“Every conveyance of real estate or any interest therein, and every mortgage or other instrument in any way, affecting the same, made without a fair and valuable consideration, or made in bad faith, or for the purpose of hindering, delaying, or defrauding creditors, shall be void as against all persons to whom the maker is at the time indebted or under any legal liability.”

Section 6022, C. O. S. 1921, provides when such transfers may be avoided:

“A creditor can avoid the act or obligation of his debtor for fraud only where the fraud obstructs the enforcement, by legal process, of his right to take the property affected by the transfer or obligation.”

This court had occasion to define a “bona fide purchaser” in Winstead v. Shank et al., 68 Okla. 269, 173 Pac. 1041:

“The essential elements which constitute a ‘bona fide purchaser’ are valuable consideration, absence of notice, and the presence of good faith.”

In Wilson v. Scrutchfield, 99 Okla. 242, 226 Pac. 356, it is said:

“Any conveyance of real estate made without a fair and valid consideration, or if made in bad faith on the part of the grant- or and grantee, or for the purpose of hindering, delaying, or defrauding the creditors of the grantor, is void against au persons to whom the grantor is, at the time, indebted. ”

It is contended by the plaintiff that prior to the time the defendant Joshua P. Beam attempted to convey the property to Mrs. Beam, that Mrs. Beam had actual notice of the fact that Mr. Beam was indebted to the bank. The testimony of J. J. Hamre (C.M.

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Bluebook (online)
1926 OK 670, 249 P. 325, 121 Okla. 164, 1926 Okla. LEXIS 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beam-v-farmers-merchants-bank-okla-1926.