Crabb v. Larkin

72 Ky. 154, 9 Bush 154, 1872 Ky. LEXIS 27
CourtCourt of Appeals of Kentucky
DecidedNovember 15, 1872
StatusPublished
Cited by5 cases

This text of 72 Ky. 154 (Crabb v. Larkin) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crabb v. Larkin, 72 Ky. 154, 9 Bush 154, 1872 Ky. LEXIS 27 (Ky. Ct. App. 1872).

Opinion

JUDGE PETEBS

delivered the opinion oe the court.

Having carefully read more than once the elaborate petition and supplemental petitions for a rehearing in this case and the replies thereto, and having patiently and attentively read and considered the voluminous records in the case, the following is submitted as the opinion of the court, instead of the one heretofore delivered.

In August, 1865, John Crabb, assignee of John Millett, instituted an action in ordinary in the .Fulton Circuit Court against R. E. Larkin and others on four notes executed by said Larkin, alias Millett (and the alias will be henceforth dispensed with), as principal, and Geo. A. Scott and Claudius Millett as his sureties, on the 19th of January, 1858, to Crabb, assignee of Millet: one for $2,011, due six months from date; one for same amount, due ten months from date; one for same amount, due fifteen months from date; and one for $2,011.90, due twenty months from date.

On the same day that this action was instituted Mary F. Millett instituted an action against said Larkin on four notes executed by him to other parties, who had respectively assigned them to said Mary F. Millett, three of which were for $731.89, and the other one was for $788. And at the same time John Crabb, assignee as aforesaid, instituted a suit in equity in the Fulton Circuit Court against said Larkin on a note for $500, executed for the price of lot No. 1 in the town of Hickman, Fulton County, praying for a sale of said lot in satisfaction of said debt.

[156]*156At the September term, 1865, of the Fiilton Circuit Court the action at law on the four notes of Crabb, assignee, against R. E. Larkin was transferred to equity, and consolidated with the suit of the same plaintiff against Larkin on the note for the price of the lot.

Larkin then filed an elaborate answer, in which, after admitting the execution of all the notes sued on, he states that prior to December, 1857, John Millett and one Simmons had been engaged in selling dry goods as partners in the city of Louisville; that the firm was dissolved by Millett purchasing out the interest of Simmons and assuming to pay the outstanding debts of the firm, and then Millett carried on the business in his own name till December, 1857, when he failed, and made an assignment of his effects for the benefit of his creditors for debts created before he formed the partnership with Simmons, and the creditors of the late firm of Millett & Simmons; that the assignee accepted the trust, and proceeded to sell the effects of Millett; that - in January, 1858, he (Larkin) purchased goods of said assignee, which were a part of the effects of John Millett, to the amount of the four notes on which the action at law was brought; that shortly after said purchase he removed the goods to Hickman.and commenced the dry-goods business, which he continued until 1864; that John Millett resided in Louisville until November 1, 1862, engaged the most of his time in adjusting and discharging the debts of Millett & Simmons and of Millett; that he commenced the business of selling goods when he removed to Hickman in November, 1862, and had continued to do so ever since; that when he failed in business in Louisville his debts amounted to about sixty-seven thousand dollars, as shown by his deed of assignment, and his assets amounted to about fifty thousand dollars. Larkin further alleges in his answer that he was successful in business in Hickman; and with a view to relieve John Millett, who was his step-father, he purchased of the [157]*157debts of said Millett enumerated in the deed of assignment to the amount of about thirty-five thousand dollars, which, with the accruing interest to the time his answer was filed, would amount to fifty thousand dollars, and professes to file a list of the same, a part of them evidenced by notes and some reduced to judgments, with regular transfers from the original holders thereof to him, which he alleges he owns, and that the same are still due to him; and although Millett and his assignee have settled, and a balance is due from the assignee to Millett, and he had funds of the assigned effects in his hands, he had failed to discharge any part of the indebtedness to him; that John Millett had also failed to pay him any part of said indebtedness ; and that the assignee had appropriated the trust-effects to his own use. He makes his answer a cross-petition against the assignee and Millett, and prays for a settlement of the trust, and for judgment against them for the amount he asserts is owing to him. He also makes his answer a cross-petition against Mary F. Millett and John Millett,-and charges that the notes sued on in the name of said M. F. Millett (who is the mother of said John Millett) are in fact his debts; that said Mary is an aged woman over seventy years, in feeble health, and, even if she had the money to purchase said debts, would not under the circumstances have embarked in such business; but he denies that she had the means to make said purchases, and charges that the assignment of said notes to his mother was planned and procured by John Millett to prevent said Larkin from setting up his indebtedness to him as an offset to said demand. He furthermore alleged that John Millett had mortgaged his house and lot in Louisville to a creditor, and on a foreclosure of the mortgage and a sale of the property Millett purchased it, and he advanced' to him twenty-five hundred dollars to aid.him to-pay off his sale-bonds for the purchase-money on the promise of Millett to have the property conveyed to him; but he failed to perform [158]*158his promise, took the conveyance to himself, afterward sold the same property for six thousand dollars, and with the proceeds bought the notes on which Mary F. Millett sued him, and had them assigned to her; and he pleads the alleged indebtedness of Millett to him for the money advanced as aforesaid as an offset to the demands for which he was sued.

About the 5th of March, 1866, John Crabb, assignee of John Millett, Mary F. Millett, and John Millett, brought a suit in equity in the Fulton Circuit Court against R. E. Larkin, George A. Scott, John A. Wilson, Wm. Calvert, and others, charging in a petition of twenty pages that Larkin had mortgaged lot No. 1 in the town of Hickman, with the buildings thereon, to said George A. Scott to secure him against loss as his surety on the four notes to Crabb, assignee, for two thousand and eleven dollars each, on which suit had been brought, and that he had made said mortgage in contemplation of insolvency and to prefer Scott to the other creditors of Larkin; that after the execution of said mortgage Larkin and Scott had joined in a conveyance of the same property to Wilson; that Wilson had mortgaged the same property to Calvert; that said conveyances were all made to defeat the creditors of Larkin, and especially Crabb and the two Milletts, in the collection of their debts; and praying that the deed to Wilson and the mortgage to Calvert be set aside, and that the mortgage to Scott be treated as an assignment for the benefit of all the creditors of R. E. Larkin under the act of 1856 against fraudulent conveyances. With this suit all the other suits herein named, and a warrant for a forcible detainer in the name of J. A. Wilson v. John Millett, were consolidated.

The defendants answer that petition separately, and after denying all fraud and the execution of the mortgage to Scott in contemplation of insolvency and in violation of the statute of 1856 (supra),

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Cite This Page — Counsel Stack

Bluebook (online)
72 Ky. 154, 9 Bush 154, 1872 Ky. LEXIS 27, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crabb-v-larkin-kyctapp-1872.