Citizens Bank of Weston v. Wilfong

66 S.E. 636, 66 W. Va. 470, 1909 W. Va. LEXIS 183
CourtWest Virginia Supreme Court
DecidedDecember 14, 1909
StatusPublished
Cited by2 cases

This text of 66 S.E. 636 (Citizens Bank of Weston v. Wilfong) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens Bank of Weston v. Wilfong, 66 S.E. 636, 66 W. Va. 470, 1909 W. Va. LEXIS 183 (W. Va. 1909).

Opinion

Poffenbarger, Judge :

Assigning twenty errors in decrees, made and entered in three consolidated chancery causes, S. L. Wilfong, Daniel Wilfong and Virginia Belle Wilfong have appealed therefrom. The suits were brought in Braxton county, one by the firm of Hyer and Hyer, assignees, in June, 1904, to enforce a vendor’s lien, reserved in a deed from Miles Simmons to S. L. Wilfong, conveying to the latter a tract of land, containing 457.25 acres; another by the Citizens Bank of Weston, in February, 1905, to set aside, as voluntary and fraudulent, a deed from S. L. Wil-fong, conveying said tract of land to Virginia Belle Wilfong, the wife of Daniel Wilfong; and the third by Mary E. Wilson, [472]*472to enforce a .-judgment lien on land and other property. In said second suit, after the entry of a decree, setting aside the deed, A. J. Wilfong and others, as creditors, filed a petition, upon which they were made parties, attacking the conveyance as fraudulent. The liens in favor of Hyer and Hyer and Mary E. Wilson are undisputed, but there is controversy as to whether Daniel Wilfong is liable for the debt, due the Citizens Bank of Weston, the note, held by it at the date of the institution of the suit, having been executed by S. L. Wilfong as principal and Chas. B'. Goodwin, D. L. Smith and A. G. Gould as sureties. By an amended bill, however, it is alleged to have been executed for a balance due on a debt of S. L. Wilfong and Daniel Wilfong and not to have been accepted as payment of the same. To this the defendants reply that Daniel Wilfong was only a surety or endorser in the original debt and was released by an extension of time, effected by the taking of the new note without his consent. This alleged release is set up on the theory of a purchase of the land, in good faith, for an adequate consideration, from S. L. Wilfong, by Daniel Wilfong for Virginia Belle Wil-fong, wife of the latter, which <could not be disturbed by anybody other than a creditor of said Daniel. To the bill and amended bill of the Citizens Bank and petitions, alleging fraud in the conveyance, S. L., Daniel and Virginia Belle Wilfong made full defenses by demurrers and answers. The causes were all consolidated, and, on consideration of a great volume of depositions and documentary evidence, consisting, in part, of the records of another suit in which a fraudulent transfer of personal property from S'. L. Wilfong to G. B. Talbott, with which Daniel Wilfong had some connection, a final decree was made on the 11th day of December, 1906, setting aside said deed as to all the assailing creditors, fixing the amounts and priorities of the debts as liens on the land, and ordering the sale of all the lands in default of payment.

If the conveyance in question was fraudulent as to the creditors of S. L. Wilfong, it is wholly immaterial whether Daniel Wilfong remained bound for the debt of the Citizens Bank. Even though he paid a valuable consideration for the land conveyed to his wife by S. L. Wilfong, that fact avails him nothing, if he did it in fraud of the rights of the creditors of the [473]*473latter. Bank v. Prager, 50 W. Va. 660; Lewis v. Bragg, 47 W. Va. 707; Bartlett v. Cleavenger, 35 W. Va. 719; Silverman v. Greaser, 27 W. Va. 550; Bowyer v. Martin, Id. 442; Livesay v. Beard, 22 W. Va. 585; Harden v. Wagner, Id. 356; Goshorn v. Snodgrass, 17 W. Va. 717. Do the facts, that the purchase money was paid by the husband and the conveyance taken in the name of the wife, make any difference, the debt sued on being that of the grantor? We think not. As between the wife and a creditor of the husband, the conveyance, being voluntary, is conclusively fraudulent. In the case supposed, there is a voidable contract between the vendor and purchaser, the grantor and purchaser, and, because of their fraudulent intent, the creditor of the former may impeach it. On the establishment of the fraud, the wife, being unable to establish a bona fide purchase for value by her without notice, since she is a mere volunteer, paying nothing, can not hold the land. Application of this general principle to cases of this class will be found in Root-Tea-Na-Herb Co. v. Rightmire, 48 W. Va. 222; Blackshire v. Petit, 35 W. Va. 547, and Goshorn v. Snodgrass, 17 W. Va. 717. Cases directly in point and denying claims of mere volunteers are Snoddy v. Haskins, 12 Grat. 363, and Williamson's Ex’r v. Goodwyn, 9 Grat. 503.

If, however, Daniel Wilfong is liable for the debt due the Citizens Bank of Weston, as a maker of, or a surety in, the note originally given for it, according to the theory of the amended bill, the voluntary conveyance made to his wife, pursuant to his alleged purchase of the land, could not stand. The bank could set it aside as being conclusively fraudulent as to it. But these allegations of the amended bill aye all squarely and flatly denied by the answers of the defendants and no proof to sustain them -has been pointed out in the brief or found by us in our examination of the record. It is morally certain, from admissions in the bill, that no credit was given to Daniel Wilfong otherwise than as endorser of the note. It is admitted that S. L. Wilfong was the maker, and Daniel the endorser, and claimed that the note was several times renewed and then that somebody else was .substituted for Daniel as an endorser. There is no evidence at all of protest and notice thereof, or -waiver of protest. It is then alleged that plaintiff [474]*474is informed and believes that Daniel was a beneficiary of tbe loan or used part of tbe money. All of this is denied and there is not a word of proof to sustain it. No witness testifies as to the exact date of the loan or as to who got the money or how it was expended.

• It follows that the great inquiry in the ease is, whether the object and purpose of this conveyance was to hinder, delay and defraud the creditors of S. L. Wilfong, whether he had such fraudulent intent and Daniel Wilfong had knowledge thereof and participated therein. To sustain this charge, plaintiffs rely mainly upon circumstances, indicative of fraud, sometimes designated in the law books as badges thereof; As summarized in their brief, these are (1) the relationship of the parties, (2) the grantor’s insolvency, (3) pursuit of him by his creditors at the time, (4) an alleged fraudulent conveyance of personal property by Samuel Wilfong to Daniel, somewhat remote in time from the date of the conveyance to Daniel’s wife, (5) alleged want of consideration, (6) retention of possession of the property by the grantor, and (7) alleged fraudulent incurrence of indebtedness after the conveyance. The history and situation of the parties and circumstances involved are substantially as follows:

Originally, all the Wilfongs, the father and mother, Jesse and Martha, the defendants S. L. and Daniel, and their brothers, A. J. and A. F., had resided in Lewis county. The father, apparently a man of some substance, had 'divided his estate among his children, conveying to them- certain tracts of land and retaining a lien for the support of himself and his wife. About the year 1900, Samuel sold his farm in 'Lewis county to LI. W. Galford for $2,892.00, receiving $1,000.00 in cash and two notes for $946.00 each, due, respectively, in about one and two years after date. One of these notes he assigned to his father.

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Bluebook (online)
66 S.E. 636, 66 W. Va. 470, 1909 W. Va. LEXIS 183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-bank-of-weston-v-wilfong-wva-1909.