Clark v. Raymond

53 N.W. 354, 86 Iowa 661
Supreme Court of Iowa·Decided October 25, 1892·Published·Cited by 14 cases

Opinion

Robinson, C. J.

The petition alleges that on or about the first day of December, 1883, défendant J. M. [662]*662Raymond made and delivered to the plaintiff his promissory note for the sum of three thousand dollars, with interest at ten per cent., due on the first day of December, 1885, no part of which has been paid; that on the twenty-fourth day of the month named the defendant J. M. Raymond executed to his son, Lucius H. R. Raymond, a bill of sale of certain wagons, farming implements and a buggy, comprising all the unincumbered personal ■property which the father then owned; that on the same day the father gave to the son a bill of sale of one hundred and fifty hogs and pigs, subject to an incumbrance thereon of three hundred dollars, said property comprising all the personal- property of the father which had not been previously incumbered to its full value; that on the thirty-first day of March, 1890, the father executed to his son a quitclaim deed, which purports to convey to the son all the real estate which the father then owned, consisting of several tracts, containing in the aggregate about thirteen hundred acres; that the said real estate was at the time incumbered to an amount greater than its value; that at the time specified J. M. Raymond was insolvent, and that the deed and bills of sale constituted a general assignment of all his property, with preferences, and were fraudulent as against creditors; that Lucius fraudently executed to his sister, Rebecca Raymond, a quitclaim deed for an undivided one-half of the real estate specified; that on the eighth day of April, 1890, the plaintiff commenced her action in the court in which this action was commenced against J. M. Raymond to recover the amount due on his promissory note; that a writ of attachment was issued in that action, which was levied upon the land which the deed purported ‘to convey, and under which Lucius H. R. Raymond, Rebecca Raymond, and certain persons who had leased portions of the land were garnished; that by means of the service of the writ of attachment the plaintiff has secured a lien upon [663]*663the real estate and upon the rents and profits thereof; that only a small portion of the real .estate has been leased, but that Lucius and Rebecca Raymond intend to re-lease the remainder; that they are insolvent; that by reason of the prior incumbrances the actual value of the real estate, so far as the plaintiff is concerned, consists of the rents and profits which are of the annual value of two thousand dollars; that in the garnishment proceedings against Lucius and Rebecca they have answered and issue has been'joined on their answers; and that the rents and profits are in danger of being lost or materially impaired if left under their control. The petition, as originally drawn, alleged that the actions on the note had not yet been determined, but in an amendment it was averred that judgment had been rendered on the note. The petition asks that the conveyances of the real estate made by the father to the son, and by the son to his sister, be decreed fraudulent and void; that a receiver be appointed to take possession of and lease it, and collect the rents and profits therefrom; that the real estate and the rents and profits in the hands of the receiver be subjected to the payment of the judgment; and that the receiver be continued, with instructions to collect the rents and profits, and apply them in payment of the judgment.

The answer denies all allegations of fraud and bad faith, and the alleged insolvency of Lucius and Rebecca Raymond, and alleges that the deed and bills of sale were made in good faith to secure valid and subsisting indebtedness. A temporary receiver was appointed in April, 1890, and on the twentieth day of the next September judgment was rendered on the note in favor of the plaintiff for the sum of five thousand and twenty-two dollars and fifty cents, with interest and costs. The district court adjudged the deeds to Lucius and Rebecca Raymond to be fraudulent and void as against the plaintiff ; that the land belonged to J. M. Raymond, and, as [664]*664such., is, with the rents and profits for the years 1890 and 1891, subject to the lien of the plaintiff’s attachment. The appointment of the receiver was made permanent, and he was authorized to rent the real estate, and Collect and apply the rents and profits therefrom in payment of the judgment. The sale of the real estate, and a general- execution to satisfy any balance remaining unpaid, were, also ordered.

1. Fraudulent conveyances: preferences: intend to hinder and delay shared by grantee. I. When the bills of salé and deed were made by J. M. Raymond he was insolvent, and that fact was known to the appellants. When the bills of sale were drawn, the description of the land was not available, and, for that reason only, the execution of the deed to the son was delayed a few days. -But the three instruments were executed pursuant to a common understanding for the same purpose, and must be regarded as parts of a single transaction. When the land was conveyed it was incumbered to its full value, excepting one tract, containing one hundred and sixty acres. That was worth at least eight hundred dollars more than the incumbrance upon it. The annual rental value of the remainder of the land conveyed was not' less than one thousand, five hundred dollars. When the deed was made, none of the incumbrances were in judgment, and it was known that before a deed could be issued under a sheriff’s sale the farm could be used for all of one year, and during so much of the next as would be necessary to raise and have the benefit of crops of small grain and grass. As a matter of fact, the incumbrances were not reduced to judgment until so late in the year 1890 that possession of the premises could not be taken under sheriffs’ deeds until after the crops of 1891 were gathered. But the value of the right of possession of the farm when the deed was given, excluding the one hundred and sixty acre tract specified, was not less than .two thousand, two hundred [665]*665dollars, and the total value, of what it was intended that the son should acquire under the deed was at least three thousand dollars. The consideration named in the deed was five hundred and twelve dollars; that named in the bill of sale of wagons, buggy, and implements was two hundred and eighty dollars; and that named in the bill of sale of hogs and pigs was five hundred dollars.

It is claimed by the appellants that the father was really owing Lucius one thousand, four hundred and fifty dollars when the transfers of property were made, and that, in addition, he agreed, as a part of the consideration of the transfers, to pay certain debts of his father, which he has done. It appears that he had worked for his father four years at the agreed price' of twenty-five dollars per month, and board and expenses when away from home; that he owned a farm of one hundred and sixty acres, and had sold his father corn to .the amount of two hundred and fifty dollars; and that he had furnished his father pasturage and some posts. What he had received from his father is not very clearly shown, but he admits having received money and clothing, and it is doubtful if his father was owing him the amounts named in the bills of sale and deed when they were given. In addition to receiving pay on his claims against his father, Lucius agreed, if there was anything left,, to pay claims-held by George Soper, Dollie Tucker, Lucius Tucker, and the First National Bank of Missouri Valley; and, if there was anything left after those claims were paid, his sister, Rebecca, was to receive one half of it.

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Clark v. Raymond, 53 N.W. 354, 86 Iowa 661 (iowa 1892).

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