Breathwit v. Bank of Fordyce

28 S.W. 511, 60 Ark. 26, 1894 Ark. LEXIS 6
CourtSupreme Court of Arkansas
DecidedDecember 8, 1894
StatusPublished
Cited by4 cases

This text of 28 S.W. 511 (Breathwit v. Bank of Fordyce) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Breathwit v. Bank of Fordyce, 28 S.W. 511, 60 Ark. 26, 1894 Ark. LEXIS 6 (Ark. 1894).

Opinion

BatteE, J.

On the 20th of October, 1890, J. L. & J. R. Breathwit were partners doing business at Kings-land, in this State. They were insolvent, and many of their creditors were urging them to pay their claims. They endeavored to get time, but, failing in this, in order to secure the debts owing by them (J. L. & J. R. Breath-with) to H. C. Draughn & Co., J. W. Doster, M. D. Wells & Co., Hill, Fontaine & Co., William Breathwit, and the Bank of Little Rock, executed a mortgage, and thereby conveyed to the creditors named certain personal property and real estate, on condition that the mortgage should be void when the debts therein described were fully paid. These debts were evidenced by promissory notés, and were owing by the mortgagors to the following creditors, on notes due, and for amounts, as follows, 'to-wit:

Hill, Fontaine & Co., note due Oct. 15, 1890... $1,000.00
H. C. Draughn & Co., note due Oct. 29, 1890... 800.00
J. W. Doster, note due Sept. 15, 1890 ......... 600.00
M. D. Wells & Co., note due Dec. 2, 1890...... 711.38
William Breathwit, note due Jan. 1, 1889 ..... 5,000.00
William Breathwit, note due April 24, 1889 ... 4,874.15
William Breathwit, note due Oct. 1, 1890 ..... 3,000.00
Bank of Little Rock, note due Nov. 12, 1890... 1,000.00
Bank of Little Rock, note due Nov. 12, 1890... 1,200.00

The mortgage was executed on the 20th of October, 1890, and was acknowledged a‘nd filed for record on the same day. On the 24th of the same month, four days thereafter, the Bank of Fordyce instituted an action in the Cleveland circuit court against J. D. & J. R. Breath-wit on a promissory note executed by them to the bank for $933.48, and sued out an order of attachment on the ground that the defendants had conveyed their property with the fraudulent intent to cheat, hinder, and delay their creditors, and caused the sheriff to seize the property conveyed by the mortgage, in order to satisfy the same. On the 24th of July, Í891, Hill, Fontaine & Co., H. C. Draughn & Co., J. W. Doster, M. D. Wells & Co., S. S. Dykes and William Breathwit filed a complaint in this action, and therein claimed the property seized by the sheriff, and set out the mortgage as the evidence of their claim.

On the 30th of July, 1891, the plaintiff filed a motion for a change of venue, which was granted, and the venue in the case was changed to the Drew circuit court. On the 8th of August, 1891, the transcript of the proceedings in the Cleveland circuit court, together with the original papers in the cause, was duly certified and filed in the Drew circuit Court. On the 22d of September, 1891, the parties appeared in the last named court, and the plaintiff filed its answer to the complaint of the claimants, admitting that the defendants executed the instrument relied on by the claimants, but denying that it was ever intended to be a mortgage, or that it was ever delivered to the claimants, or to any one for them who was authorized or empowered to receive the same, or that the claimants ever received or acquired possession of the property described therein prior to the attachment. Plaintiff also alleged in its answer that the instrument relied on by the claimant was a general assignment for the benefit of creditors, and was fraudulent and void because it provides that the assignees should take possession of the property without executing a bond or filing an inventory as required by the statute, and denied that the defendants, J. L. & J; R. Breathwit, were, at the time of the execution of the instrument, indebted to William Breathwit, or were, at the time of the filing of their answer, indebted to M. D. Wells & Co., and alleged that the instrument was executed with the intent to cheat, hinder and delay creditors. On the same day, and upon motion of the defendants, and with the consent of all parties, the Drew circuit court remanded the cause to the Cleveland circuit court for trial.

All the issues were submitted by the parties for trial to the court sitting as a jury. The instrument being unquestionably a mortgage, and M. D. Wells & Co. and the Bank of Little Rock having refused to accept it, there were only three issues tó be tried: First. Did J. L. & J. R. Breathwit execute the mortgage with the intent to cheat, hinder and delay their creditors? Second. Was the debt to William Breath-wit, secured thereby, real or simulated? Third. Was the mortgage delivered to and accepted by the mortgagees — that is to say, Hill, Fontaine & Co., H. C. Draughn & Co., J. W. Doster and William Breathwit?

It would serve no useful purpose to set out at length in this opinion the evidence adduced at the trial. It is sufficient to say that it tended to prove that the mortgage was executed by J. L. & J. R. Breathwit with the intent to cheat, hinder and delay their creditors, and that William Breathwit let them have large sums of money with no, intent to demand the return of it, but gave it to them, and that no debt was thereby created, and that the undisputed evidence shows that the mortgage was delivered by the mortgagors to H. C. Draughn on the day it was signed, and at the time when their creditors were pressing them for payment, with the request that he file it for record, which he did on the:20th of October, T890„ four days before the attachment, "and that they at once notified the mortgagees, who were present, of its execution, and sent information of that fact by telegram to the others. We have failed to discover any evidence that tended to show that Hill, Fontaine & Co. or J. W. Doster did or did not expressly accept the mortgage.

In the course of the trial, witnesses were allowed to testify, over the objections of William Breathwit, in effect, that he, a short time before the mortgage was executed, said that J. B. & J. R. Breathwit, who were his children, owed him nothing, and that the moneys which he let them have were given to them. To the admission of this testimony, William Breathwit at the time excepted.

Among the numerous declarations of law made, the court declared the law, over the objections of the claimants, to be as follows : “A mortgage, to be valid against an attachment lien, must not only be filed for record, but must be accepted by the mortgagees prior to the levy of the attachment. One mortgagee cannot accept for others without authority given prior to the attachment. The subsequent ratification does not relate back to the time of the execution of the mortgage.”

And the court found the facts as follows :

. First. That the evidence sustained the attachment as to the defendants.

Second. That the instrument upon which the claimants rely is a mortgage, and not an assignment.

Third. That H. C. Draughn and William Breath-wit accepted the mortgage; and that the other mortgagees did not accept before the order of attachment was issued.

And Fourth. That the amounts claimed by William Breathwit, and secured by the mortgage, were gifts on advancements to his children, J. B. & J. R. Breathwit.

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Cite This Page — Counsel Stack

Bluebook (online)
28 S.W. 511, 60 Ark. 26, 1894 Ark. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/breathwit-v-bank-of-fordyce-ark-1894.