Cumer & Co. v. Allen

72 Ga. 1
CourtSupreme Court of Georgia
DecidedNovember 20, 1883
StatusPublished
Cited by2 cases

This text of 72 Ga. 1 (Cumer & Co. v. Allen) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cumer & Co. v. Allen, 72 Ga. 1 (Ga. 1883).

Opinion

Hall, Justice.

On the 11th day of November, 1881, Mrs. Martha E. Allen took from her husband, G. D. Allen, a mortgage on the land and property, therein mentioned, to secure a note of even date with the same, given for a past indebtedness from the husband to her, amounting to $2,715. This mortgage was duly recorded, and was foreclosed. On the 22d day of November, 1881, G. D. Allen executed and delivered to H. M. Comer & Co. a mortgage on the same property, to secure a large debt due H. M. Comer & Co., from Dumas & Allen, of which latter firm Allen was a partner. Prior to and at the time of the execution of this mortgage, notice was given to Comer & Co., through the agent and attorney conducting the business for them, not [3]*3only of Mrs. Allen’s -mortgage but .of others of older date, upon the same premises. • This last mortgage was recorded, and likewise foreclosed.- When the .mortgaged land was levied on and about to: be sold, Mrs. Allen placed in the hands of the sheriff the fi. fa. issuing, upon the judgment of foreclosure of the mortgage in her favor, for the purpose of claiming the-proceeds of the sale.. .Oomer &.Oo. filed an affidavit of illegality to her/Z. /«., contesting its validity, and set forth, in said affidavit the following grounds:

(1.) That-said George D. Allen, at-the time of.giving to his said wife, Mrs. -Martha E. Allen, the.-said mortgage, was not Iona fide indebted to-his said wife in anyway, whatever.

(2.) That said George.D. Allen signed and executed, said mortgage in favor of his wife (if the same was ever' executed at all) for the sole.purpose of defrauding his■ creditors, and not for the purpose of securing to his wife, any just or bo?iafide. debt.

(3.) That said mortgage was signed and placed on record after the failure-dn. business of the- said Dumas & Allen, for the sole purpose, on the part of said Allen, to-defeat the payment of the-just debts, of-his creditors and the creditors, of his firm. ■ •

(4.) That said mortgage in favor--of the said Mrs. Martha E. Allen is without any -consideration -to support it.'

(ft.) That, as deponent is informed and believes, while said mortgage purports to have- been signed, sealed and delivered by said G. D. Allen to his said wife on the 11 th'. day-of November, A. D. 1881, the.same-was not,-in fact,, delivered on said day, and- was no.t-delivered at the time-said G. D. Allen gave to deponent’s firm his said mortgage-bearing date -the 22d-day of November, A. D. 1881.

(6.) That said G. D. -Allen, at the-time of executing the-mortgage to H. M. Comer & Co. (as deponent believes), had. the said mortgage.in favor of his said wife in his own possession and control, and had not then delivered the same-to his said wife..

[4]*4(7 th.) That on or about the time that said Allen executed his said mortgage to deponent’s said firm, he stated that the consideration of the mortgage to his said wife was for money which he, the said G. D. Allen, had borrowed or otherwise obtained from the father of his said wife, which money he had used in his business as his own, and without the knowledge of these contestants or his other creditors.

(8.) That if in equity the said G. D. Allen ever owed to his wife the said sum of money, or any part thereof, by reason of the fact of obtaining the same from his wife’s father, said claim was, at the time of giving her the said mortgage, barred by the statute of limitations; and that, if the said Mrs. Martha E. Allen ever had any legal claim on the same against her husband, she had allowed said Allen to use the same in his business as his own, and not as the ■ debtor of his said wife; and that it is a fraud on his creditors now to permit her to take the same from his credit"Ors, particularly after his failure in business, and when his said wife had never before made any claim on her said husband for the same.

“And deponent further says that the property, on which 'his said firm holds said mortgage, is insufficient to pay off the debt of said H. M. Comer & Co., and that said George D. Allen is insolvent. And the said H. M. Comer <fe Co. herewith tender bond with good security, in terms of the law, and pray that the issue here made may be returned and determined as the law provides.

“And for further grounds of contest, deponent says that, on the 18th day of April, 1881, the said G. D. Allen borrowed of IT. M. Comer & Co. the sum of three thousand dollars, for which he gave the firm note of Dumas ds Allen, due the 15th day of October after the date thereof; and afterwards a further sum of three thousand dollars, giving the firm note of Dumas & Allen, dated April 80th, 1881, and due the 15th November thereafter, with 8 per cent interest; and the said Dumas & Allen also borrowed on [5]*5open account the sum of six thousand dollars ; and at the time said loans were made, the said mortgagors stated to the said H. M. Coiner & Co. that there was no encumbrance on said property, and said loans were made on said statement, and that said mortgage, given by said G. D. Allen to his wife is, in law, a fraud upon the rights of these deponents, they having given said credit upon the statement of the said G. D. Allen that said property was unencumbered, and that his said firm was solvent, when, in truth, it was insolvent.”

These several grounds of illegality were traversed and denied by Mrs. Allen; and upon the trial of the issue thus formed, much testimony was taken;'and the testimony being closed, the presiding judge delivered the following charge to the jury:

“ If Mrs. Allen, had a valid, legal,, subsisting debt against her husband, and if she, in a transaction free from fraud, took a mortgage from her husband to secure the same, then you would be authorized to find that said mortgage fi.fa. proceed. But I charge you, if the said plaintiff, Mrs. Allen, did not have a valid, legal, subsisting debt, or if she did hold a debt against her husband, if she took a mortgage to secure the same, which was not free- from fraud in a transaction between her and her husband, then you would not be authorized to find that the fu fa. proceed, but would find in favor of the defendant, Comer.
“The defendant, Comer, by his illegality insists that the said G. D. Allen was not due his said wife any sum of money whatsoever,. If this be true, then, although a mortgage may have been given, the same would be without consideration, and would be void, and you would so find.
“ Again, the defendant, Comer, insists that the said transaction of giving the mortgage by the said G. D. Allen, to the said plaintiff, was fraudulent and void, as to the creditors of the said G. D. Allen. Fraud will not be presumed, but being subtle in its nature, slight circumstances will carry conviction of its existence; and transactions between husband and wife should be S(anned with care, and should be free from fraud, and fair in every particular; and in order to determine whether the transaction is free from fraud or not, you would be authorized to consider all the circumstances proved in the case.
“ You might consider whether the debt claimed by Mrs. Alien was or not barred by the statute of limitations at the time of giving the mortgage. You might consider whether the debt was evidenced by [6]*6note, account, or other writing.

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Bluebook (online)
72 Ga. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cumer-co-v-allen-ga-1883.