Dayton Spice-Mills Co. v. Sloan

68 N.W. 1040, 49 Neb. 622, 1896 Neb. LEXIS 823
CourtNebraska Supreme Court
DecidedNovember 18, 1896
DocketNo. 6406
StatusPublished
Cited by18 cases

This text of 68 N.W. 1040 (Dayton Spice-Mills Co. v. Sloan) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dayton Spice-Mills Co. v. Sloan, 68 N.W. 1040, 49 Neb. 622, 1896 Neb. LEXIS 823 (Neb. 1896).

Opinion

Harrison, J.

This action was commenced by plaintiff! in the district court of Douglas county against the defendants, on a claim not due. It also filed an affidavit setting forth the statutory grounds authorizing the issuance of an attachment in such action. A writ of attachment was ordered, and was issued and served. Motion to dissolve the attachment was presented and, on hearing, sustained. The attachment was dissolved and the cause dismissed. The plaintiff has prosecuted an error proceeding to this court.

At the time of the hearing of the motion to dissolve the attachment, or immediately prior thereto, the plaintiff filed an application for a continuance of such hearing, supported by affidavit. The application was denied, and this action is made the subject of one of the assignments of error. The main tendency of the evidence which it was asserted might be produced, if a continuance was granted, would have been to prove that the defendants had fraudulently contracted the debt in suit; and it would have been incompetent in the present proceeding, this being an action instituted upon a claim before it was due. (Caulfield v. Bittenger, 37 Neb., 542.) An examination of the record convinces us that there was no error in the refusal to grant a continuance, of which the plaintiff has any just complaint.

It is urged that the statements of the affidavit in attachment were hot sufficiently traversed or denied. Whether this was true or not, the question does not appear to have been raised on the hearing in the trial court, and hence will not be considered here. (Dunham v. Courtnay, 24 Neb., 627.)

The defendants had given, at or about the time of the [627]*627attachment, certain mortgages to some of their creditors, as security for the payment of their indebtedness to such creditors, which it is claimed was excessive security, and furnished, as a matter of law, ground for sustaining the attachment. The prevailing doctrine of this court on the subject of excessive security is as follows: “The disproportion, if one exists, between the value of chattels mortgaged and the amount thereby secured affords no basis for a presumption of law. It is a matter of evidence to be accorded such weight as in the light of surrounding circumstances it is entitled to receive in the determination of a question of fact.” (Grand Island Banking Co. v. Costello, 45 Neb., 119.) If the evidence had established that excessive security had been given, a point as to which it was conflicting, it would have been but evidence to be considered with the other facts and circumstances bearing on the question of fraud, as a matter of fact. It appears from the evidence that the defendants, on June 21, 1893, and during a number of years prior thereto, were conducting a wholesale grocery business in the city of Omaha., as partners, under the firm name of Sloan, Johnson & Oo. On the date mentioned the firm was heavily indebted to various creditors, and, as security for the payment of existing liabilities, executed and delivered to the First National Bank of Omaha a chattel mortgage, the amount which it was given to secure being stated therein as $49,576.60; also a similar instrument in favor of the Colorado National Bank of Denver, in the stated sum of $30,000; the property included in the two mortgages being all the stock of merchandise belonging to the firm. On the same date there was also assigned to the second of the banks named book accounts of the firm amounting to the sum of $15,000, and subsequently more of the book accounts were assigned and parcelled out or delivered to others of the firm’s creditors.

On the same date that the said chattel mortgages were executed to the banks, one member of the firm, William G. Sloan, executed and delivered to his wife, Ruth Anna [628]*628Sloan, a mortgage on his residence property to secure a stated indebtedness in the sum of $6,432.81, and the other member of the firm, Jonas P. Johnson, gave his wife, Ella G. Johnson, a mortgage on his residence property in the sum of $9,861.31. It appears that 'the property mortgaged to Mrs. Sloan was worth or valued then at about $15,000, and Mr. Johnson’s residence at about $14,000. It appears that some years prior to the time that the firm embarked in business in Omaha, William G. Sloan had two endowment policies of insurance on his life, which matured and were paid, one May 20, 1886, and the other June 1, 1889. The amount received in payment of the two policies was, in the aggregate, $3,087.46. These sums were paid to Mrs. Sloan on the dates we have mentioned, and immediately given to Mr. Sloan, who executed and delivered to his wife promissory notes, payable to her, in sums corresponding to the cash received by him. It was testified that Mrs. Sloan had received from some relatives $1,000, which she had loaned to Mr. Sloan. None of the principal or interest of the notes given by Mr. Sloan to his wife had ever been paid, and the whole amount claimed to be due for both principal and interest was the consideration stated in the mortgage given by Mr. Sloan to his wife. It further appeared that Mr. Johnson had an endowment policy of insurance on his life, payable to himself, which was, when paid at its maturity, paid at his request to his wife, kept by her until the next day, when it was by her turned over to him, and he gave his wife a promissory note in a like amount, signed by himself and William G. Sloan. None of the principal or interest had ever been paid, and their aggregate amount constituted the consideration stated in the mortgage to Mrs. Johnson, of date June 1, 1893. All the premiums on the policy of William G. Sloan had been paid by the assured and the premiums on Johnson’s had been paid by him. These transactions between the husbands aud wives were gifts or attempted transfers of the money to them as gifts, and subsequent and immediate [629]*629loans thereof to the donors, the husbands. The husbands, at the dates of the several occurrences, were solvent and amply able to make the presents to their wives. It appears that one was then estimated to be worth $40,000 and the other $80,000. One question which arises is, could the husbands make gifts of money or personal property to the wives, and it become the separate property of the wives and not subject to the disposal of the husbands, or liable for their debts? This is not a direct proceeding to annul the gifts from the husbands to the wives, but the validity of the gifts is drawn into question in the determination of the good faith or fraudulent character of the mortgages from the husbands to the wives to secure the payment of the debts which, if they existed, were created when the husband gave to the wives the money derived from the life insurance policies, and received it from them again as loans, which were then evidenced by promissory notes. Some of the transactions took place in another state than this, but the law of the state in which they occurred, in regard to the rights of married women to acquire and own property, was not introduced in evidence, is not contended to be different from that of our own state, and must be presumed to be the same on the subject involved.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Graff v. Graff
138 N.W.2d 644 (Nebraska Supreme Court, 1965)
Gurske v. Strate
87 N.W.2d 703 (Nebraska Supreme Court, 1958)
National Reefer Service, Inc. v. Felman
83 N.W.2d 547 (Nebraska Supreme Court, 1957)
McCartney v. McCartney
260 N.W. 184 (Nebraska Supreme Court, 1935)
Glissmann v. McDonald
260 N.W. 182 (Nebraska Supreme Court, 1935)
Winslow State Bank v. Westlin
246 N.W. 239 (Nebraska Supreme Court, 1933)
Bartels v. Staben
237 N.W. 151 (Nebraska Supreme Court, 1931)
Emerson v. Western Seed & Irrigation Co.
216 N.W. 297 (Nebraska Supreme Court, 1927)
Enos v. Hanff
152 N.W. 397 (Nebraska Supreme Court, 1915)
Currier v. Teske
120 N.W. 1015 (Nebraska Supreme Court, 1909)
Neill v. Burke
115 N.W. 321 (Nebraska Supreme Court, 1908)
Batty v. City of Hastings
95 N.W. 866 (Nebraska Supreme Court, 1903)
Symns Grocery Co. v. Snow Bros.
78 N.W. 1066 (Nebraska Supreme Court, 1899)
First National Bank v. Haylik
51 Neb. 668 (Nebraska Supreme Court, 1897)
Studebaker Bros. Manufacturing Co. v. Welch
70 N.W. 920 (Nebraska Supreme Court, 1897)
Smith v. Bowen
70 N.W. 949 (Nebraska Supreme Court, 1897)
McCord, Brady & Co. v. Bowen
70 N.W. 950 (Nebraska Supreme Court, 1897)
Gedney Pickle Co. v. Sloan, Johnson & Co.
68 N.W. 1102 (Nebraska Supreme Court, 1896)

Cite This Page — Counsel Stack

Bluebook (online)
68 N.W. 1040, 49 Neb. 622, 1896 Neb. LEXIS 823, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dayton-spice-mills-co-v-sloan-neb-1896.