Daniel v. Morrison's

36 Ky. 182, 6 Dana 182, 1838 Ky. LEXIS 21
CourtCourt of Appeals of Kentucky
DecidedApril 10, 1838
StatusPublished
Cited by14 cases

This text of 36 Ky. 182 (Daniel v. Morrison's) 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
Daniel v. Morrison's, 36 Ky. 182, 6 Dana 182, 1838 Ky. LEXIS 21 (Ky. Ct. App. 1838).

Opinion

Chief Justice Robertson

delivered the Opinion of the Court.

Henry Clay, vas executor of James Morrison, having sued Thomas I. Garret in detinue for some slaves his testator had bought from Garret, in September, 1818, but permitted to remain in his possession — filed a bill in chancery, enjoining their removal beyond the jurisdiction of the Court, and seeking a nullifaction of a deed of trust made, in 1819, to one Everet, for the indemnity of Henry Daniel and others, as the sureties of Garret to John W. Hunt, and purporting a transfer by Garret, of the legal title to the same slaves and other property.— Daniel and his co-sureties, as well as their trustee, made their answer a cross bill, and, alleging that Morrison, after an absolute purchase of the slaves, had permitted his vendor, Garret, to continue the possessor and ostensible owner of them, and insisting, therefore, that his purchase was per se fraudulent as to themselves, who, as they averred, became Garret’s sureties whilst he was so possessed of the slaves, without notice of Morrison’s claim, and in consideration of an agreement by Garret, to secure their indemnity by the deed of trust after-wards given; and wherefore they prayed for a decree declaring Morrison’s claim void as to them, and subjecting the slaves and other trust property to the satisfaction of the debt for which they were bound to Hunt: unless the Court should relieve them from that debt, on the ground (set up in the cross bill against Hunt also,) that Hunt, having, as they averred, notice of Morrison’s claim to the slaves, had nevertheless, for the fraudulent purpose of inducing them to become bound to him as the sureties of Garret, falsely assured them that he did not know that there was any “lien” on them.

L.

Pending an action of detinue for slaves, the plt'f filed a bill in chancery, to prevent their removal by certain sureties, for whose indemni%tinue had conveyed them to a trustee: these sureties answer, and making their answer a cross bill, allege that, after an absolute sale, (under which the plaintiff claims,) the slaves were permitted to remain with the vendor, who thus held them when they became bound for him; and that the title of the purchaser was, therefore, fraudulent as to them: equity may take jurisdiction of this cross bill— as it would of an original bill for the same object — and settle the question of fraud. And the rights of the sureties will not be determined or affected by a judgment in the action of detinue — to which they were no parties. And —

The. Circuit Court having rendered a decree dismissing Clay’s bill, and exonerating Daniel and his' co-sureties from liability to Hunt, without disposing, otherwise or to any greater extent, of the cross bill, and this Court having reversed the decree against Hunt, and remanded the case with instructions to dismiss the cross bill as to him, and proceed to a full and final disposition of it as to Clay — it was accordingly dismissed as to Hunt, and, after further prosecution against Clay, was dismissed also as to him.

To reverse this last decree, this appeal is prosecuted.

All the material facts not herein already stated, appearing, as they do, in the case’of Hunt vs. Daniel et al, (6 J. J. Mar. 398,) we will not unnecessarily enlarge this opinion by a detailed repetition of them.

We do not doubt the jurisdiction of the Circuit Court. Clay’s bill, praying a decree affecting the right claimed by the appellants, entitled them to litigate, by their answer in the nature of a cross bill, the title to the slaves, and the question of fraud raised by that answer. And, had no such bill been ever filed by Clay, they might have filedan original bill for enforcing their decree of trust and removing the incumbrance thereon, arising from Morrison’s purchase, if, as charged, it was fraudulent.

Nor did the judgment Clay obtained for the slaves, in his action of detinue, conclude the question now raised as to' the alleged fraudulency inlaw of Morrison’s contract, so far as the appellants are concerned; because, though the contract may have been void as to them, still it was not therefore invalid as between the parties to it, and, of course, the matter now litigated could not have been either decided or involved in the action of detinue by Clay against Garret.

And we also feel well satisfied that if, as alleged, Dan-' iel and others became Garret’s sureties in consequence of their belief that he was the owner of the slaves, and of an agreement by him to secure them by a lien, they should be deemed such purchasers as may avoid the pre[184]*184vious absolute sale of them to Morrison, on the ground that, the possession not having accompanied the title, the sale was, as to them, per se fraudulent; for not only did the deed of trust purport to transfer to their use the legal title, but the consideration was valuable, in fact, as - well as in judgment of law, and should be considered as having been actually paid, because Garret being insolvent, their liability to Hunt is enforcable against them, even though Clay, as Morrison’s executor, may hold the slaves; and it appears that all the other property included in their mortgage, will be insufficient for their indemnity.

If the sureties became bound in consequence of their belief that their principal owned the slaves, and his agreement to secure them, by a lien upon them -they are such purchasers as may impeach the pre vious sale, as per se fraudulent as to them. But if, when they first becam e sureties,they had notice of the sale, equity will not declare it void for their benefit.* G owed a largo sum to P, who was largely indebted to M. P pledged G's notes to M, as collate ral security; and G, as a security for those notes, gave P a mortgage ‘on certain slaves. After-wards, they all agreed -that M should take the slaves as a purchaser, at their value, and G accordingly conveyed them to him — G and P each receiving an adequate credit upon their respective notes.— The slaves, however, still remained in the possession of G, the vendor, & he afterwards conveyed them to a trustee, as a security for certain others creditors his; and they attack fraudulent and because the possession was not changed to beties: — but held that’ when validity of which was made by G to P. it inured of M, as pawnee of the mortgage debt; and if the subsequent absolute and sale was void at was void only as to theinterest which passed by it (i. e. the equity of redemption;) as, if it was void, it d¿d p°e-exfetfog mortgage, & the would be only to to their former title as mortgage slave” were taken by M, honafide, at their fob- value, which was less than the subsequent mortsum they were mortgaged for, a re-sale for the benefit of the creditors, as gagees, is denied.

[184]*184If, however, the appellants, when they first bound themselves as Garret’s sureties, had notice of Morrison’s purchase, a court of equity should not declare it void, for their benefit, on the ground of constructive fraud; and . there is no pretence for the imputation of actual fraud. Whether they had, or had not, such notice, we should feel' much perplexity in deciding the one way or the other, and shall not attempt to decide, because, however that fact may be, there is, in our judgment, one ground on which the appellants must fail.

T. H.

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Cite This Page — Counsel Stack

Bluebook (online)
36 Ky. 182, 6 Dana 182, 1838 Ky. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daniel-v-morrisons-kyctapp-1838.