Crawford v. Kirksey

50 Ala. 590
Supreme Court of Alabama·Decided January 15, 1874·Published·Cited by 15 cases

Opinion

PETERS, J.

This is a suit in chancery, commenced by Wiley Coleman and Foster M. Kirksey, as complainants, against Samuel L. Creswell, James Crawford, and William P. Webb, as defendants, in the court below. The purpose of the suit is, to have certain deeds, mentioned in the bill, declared void, or to have them declared “ a general assignment ” for the benefit of all the creditors of said Creswell, among whom the complainants allege they are such creditors. The court below declared the deeds void; and Crawford, in behalf of himself and the other defendants, appeals to this court, and here assigns the decree below as error.

The original bill in this cause will be considered, in connection with the amended bill, as forming but one case; for such [592] is really the issue presented by the pleadings. The suit, then, consists in an application to a court of chancery, to have two conveyances — the one executed on the 4th day of October, 1866, by Creswell to James Crawford, and the other executed on the 5th day of October, following, in the same year, to said Crawford and W. P. Webb — declared void, because they were made to hinder and delay the creditors of said Creswell, in the collection of their debts; or to have said conveyances taken together as one transaction, and declared a general assignment of all the maker’s property, both real and personal, in favor of all his creditors. The bill is filed as “a creditors’ bill,” by Kirksey and Coleman, as creditors of Creswell, on behalf of themselves and the other creditors. The bill and the amended bill are each separately demurred to, and the objections in each demurrer are, in substance, the same; or, at least, after the amendment, which removed some of the objections to the original bill, the causes of demurrer were reduced to the same points of objection. These are: that the bill, as amended, is without equity, and that it is framed with a double aspect; and that the alternative averments do not admit of the same relief; or, in other words, that the statements of the bill mingle two cases which are repugnant and incongruous in the same suit.

There can be no doubt that a creditor without a lien may file a bill in chancery, to subject to the payment of his debt any property which has been fraudulently transferred, or attempted to be fraudulently transferred, by his debtor. This is the statute law of this State. Rev. Code, § 3446. It is equally well settled, that, when there is a general assignment, or such an one as the law clothes with the force and attributes of a general assignment in favor of creditors, such an assignment invests the creditors with a lien, which enables them, or any one of them, for himself and all others who may join in bearing the burdens of the suit, and who choose to come in and prove their debts upon a reference to the master, to file a bill in chancery to compel an execution of the trust, thus created for their benefit. Such a bill is strictly a “ creditors’ bill ” under our statute. Rev. Code, § 1867; Holt & Chambers v. Bancroft, Betts & Marshall, 30 Ala. 193, and cases cited. In this latter case, the complainants were judgment creditors; but the bill did not show that executions on their judgments had been returned “ No property found.” In a case similar to this, this court has said, “ The exhausting the remedy at law was not necessary to enable the complainants to file the bill in this case. The creditors were, by the general assignment, invested with a lien, and had, therefore, a right to file this bill for the purpose of removing an obstacle in the way of the execution of the trust for their benefit.” 30 Ala. 193, 204, 205, [593] supra. The statute gives to the assignment for the benefit of preferred creditors the same effect as a general assignment, and the remedies to enforce rights under the former should be the same as under the latter. The reasons in the one case are the same as in the other ; and where there is no statute, like reason makes like law. The only difference is, that one is a lien created by the parties, while the other is a lien created by law ; but both equally grow out of the contract, and the rights, when established, are the same. The making of such a conveyance creates a trust under our statute, and, as such, there is jurisdiction in equity to enforce the proper administration of the trust. In such a case, chancery has original and plenary jurisdiction. 1 Story’s Eq. §§ 29, 49. Then, as to the subject-matter of the bill as amended, I think there can be no reasonable doubt of its equity. Under one branch of the statute, the remedy in chancery is expressly given, and the remedy under the other has always been in courts of equity. Rev. Code, §§ 3446 ; 30 Ala. 193, supra; Longmire v. Goode & Ulrich, 38 Ala. 577; Warren v. Lee & Larkins, 32 Ala. 440.

The demurrer in this case is a general demurrer to the equity of the bill. Such a demurrer, if upon any part of the bill the complainants are entitled to relief, is bad. Welford’s Eq. Pl. p. 265, marg.; Jones v. Frost, 2 Madd. 7. But the grounds of .demurrer seem to be aimed at the frame of the bill in one particular aspect of its statements. In one aspect of the bill, there is no doubt of its equity ; that is, as a bill to set aside a fraudulent conveyance (Rev. Code, § 3446), yet the demurrer is general. Nevertheless, it is aimed at but one aspect of the bill. It is, in effect, a demurrer to a portion of the bill. Such a demurrer is bad. Welford’s Eq. Pl. p. 265, marg.; Metcalfe v. Brown, 5 Price, 563; Edsell v. Buchanan, 2 Vesey, 83. Such a pleading cannot be treated as a demurrer to a portion of the bill, because it assails the whole. Mitf. by Jer. 108 ; 1 Smith’s Ch. Pr. 201, 205; 2 Dan. Ch. Pr. 71, marg.

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