Butterfield v. Stanton

44 Miss. 15
CourtMississippi Supreme Court
DecidedOctober 15, 1870
StatusPublished
Cited by3 cases

This text of 44 Miss. 15 (Butterfield v. Stanton) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butterfield v. Stanton, 44 Miss. 15 (Mich. 1870).

Opinion

Tabbell, J.:

At the April term, 1867, of the chancery court of Adams county, Ralph Butterfield filed his bill of complaint against David Stanton, Anna E. Stanton, and Ann W. Winston, to set aside a conveyance, for fraud, made by the defendant, David Stanton, to defendant, Ann W. Winston, in trust for Anna E. Stanton, and to subject the property to the satisfaction of a judgment at law, recovered by the complainant against the defendants, David Stanton and Ann W. Winston.

The record discloses the following facts:

David Stanton, and Anna E. Winston, daughter of Geo. Winston, and Mrs. Ann W. Winston, intermarried in 1834. Mrs. Stanton having inherited a large fortune from her father, it was settled upon her by agreement with, and con[20]*20veyance from, her husband to Mrs. Ann W. Winston, as trustee, in 1843, at which time Stanton owed no debts which he did not subsequently pay. During this period Stanton and Stockman were merchants and partners in Natchez, doing a large, prosperous and increasing business, with an unbounded credit. In 1849 Stanton purchased a lot, containing nine’ acres, having on it a dwelling-house and other improvements, for which he was to pay $1,000 cash, and $4,000 in four equal annual installments, for which he gave his notes. Of the $1,000 cash, he borrowed of his wife $500 belonging to her separate estate. In December, 1850, a store, storehouse and lot were offered for sale for $7,000, which Stanton desired to purchase as a place of business, bnt was .unable to do so and complete the contract for bis house and lot. He thereupon proposed to his wife and her trustee to assume the contract for the house and lot, and to exonerate him therefrom, so that he could purchase the store and lot, which proposition was accepted by them. Thereupon Mrs. Stanton refunded to her husband the $500 paid by him on the purchase money, and, as the notes for the purchase money became due, they were taken up by Mrs. Stanton’with funds out of her separate property. From the date of this arrangement the house and lot were considered, treated and agreed to be the property of Mrs. Stanton, and therefrom, the property was subject to and was actually managed and controlled by her. In 1854, Stanton purchased in his own name five acres adjoining the nine acres mentioned, taking title as before, to himself, for which he gave his note of $1,000, payable in one year. This contract he at the time turned over to Mrs. Stanton, wbo paid and took up the note at its maturity, with the agreement as in regard to the nine acres, that the property was to be hers. These two parcels of land, united, were known as “ the Elms, ” and constituted the property mentioned in complainant’s bill of complaint.

Expensive repairs upon, and additions to, this property were made by Mrs, Stanton, out of her separate fund, to the amount of ten or fifteen thousand dollars, all under her dictation, as upon her individual property.

[21]*21Iii fact, from the arrangement in December, 1850, the ■property was in all respects under her Management, as her own — so considered, and practically treated in the family.

In January, 1862, Stanton and Stockman gave their note, with Mrs. Winston as surety, to Ralph Butterfield, the complainant, for $5,000, to renew the note of Stanton and Stock-man for money previously loaned to them, payable in January, 1863.

In July, 1865, Stanton conveyed the property mentioned to Mrs. Winston, for the use of his wife.

In October, 1866, Butterfield recovered judgment against Stanton and Mrs. Winston, upon the note alluded to, for the sum of $8,012 50.

In 1867, execution upon this judgment was returned nulla liona. '

The conveyance upon the marriage settlement in 1843, by Stanton, to Mrs. Winston, as trustee, for the use of his wife, was duly recorded, as were all the deeds referred to.

The averments' and denials in the bill and answer, are full and ample. The bill alleges the conveyance from Stanton to his wife’s use, in 1865, to be fraudulent and void, and that he “ gave credit to the said Stanton in consequence of the possession of said lot and its improvements, and other property. ” The prayer of the bill is, that this- property be subjected to the payment of the judgment of the complainant.

The defendants, in their several answers, deny all fraud', and are minute and explicit in their statements, which are fully sustained by the evidence, showing valuable consideration and undoubted good faith in all the transactions of the parties.

Butterfield and Stanton were examined in open court, and their testimony is as follows :

Bulterfield stated: “ I am complainant in this, cause. I know ‘ the Elms ’ property. David Stanton was in possession and owned the Elms. I never saw David Stanton in possession of the property. I knew that he was living there. [22]*22I lent the money to Stanton and Stockman. The note sued on was a renewal of the original, taking Mrs. Winston as security. I never heard of any one except David Stanton having any interest in the property until I was about to bring suit on the note. I satisfied myself that Stanton hadproperty before I loaned the money. I had investigated Stanton’s affairs to ascertain if he had the ability to pay. I examined the records of the probate clerk’s office. I learned from them that he owned the Elms and the store at the corner of Main and Pearl streets, Natchez. The fact of Stanton’s possession of the Elms had an influence on me in lending the money. Stanton and Stockman applied to me through S. D. Stockman for money. I think I should not have lent the money if I had not thought they were possessed of property. I supposed the house was solvent. I would not lend only to men who owned real estate. I was in the habit of lending money. I delayed a few days before I lent the money. The delay was to make the investigation of Stanton and Stockman’s standing. I knew nothing of the homestead exemption. I don’t think I found any real estate in the name of Stockman. I gave credit because the firm was in good credit and one or the other owned real estate.”

On cross-examination he stated: “ The original contract was made with Stockman. I don’t recollect that Stanton was present when the original contract was made. Nothing was said about the possession of the property when the loan was made. When examining the records I merely saw the deed to Stanton. If I had not found the deed to the Elms, I think I should not have loaned the money; can’t say positively, however. I found Stanton and Stockman’s credit, as merchants in Natchez, good at the time I lent the money. I suppose the property on Main street, was worth as much as the money loaned. I did not ask a lien on the Elms as security on the renewal of the note. Neither Stanton nor Stock-man proposed to pledge the Elms to me. I don’t think Stanton ever said that the Elms would be liable for his debts. At the time of the renewal of the note I learned that Stanton [23]*23did not own a plantation on the other side of the river. The plantation belonged to Mrs. Ann W. Winston and the wife of David Stanton. They gave me Mrs. Winston as. additional security. She had property, and I considered her solvent. I don’t remember finding any property in the name of Stock-man ; my attention was directed to Stanton as the money partner of the firm. ”

David Stanton, being sworn and examined, stated: “ I am defendant in this cause. The contract was made for the firm by Mr. Stockman. I had no negotiations with Dr.

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Bluebook (online)
44 Miss. 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butterfield-v-stanton-miss-1870.