Deatherage v. Park

1 Ky. Op. 50, 1867 Ky. LEXIS 221
CourtCourt of Appeals of Kentucky
DecidedJune 1, 1867
StatusPublished

This text of 1 Ky. Op. 50 (Deatherage v. Park) 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
Deatherage v. Park, 1 Ky. Op. 50, 1867 Ky. LEXIS 221 (Ky. Ct. App. 1867).

Opinion

Opinion op the Court by

Judge Williams :

Deatherage, David Noble, Sr., and David Noble, Jr., and Wm. Drew were joint suretys for Carter Parks to Collins, and Deatherage was compelled to pay the debt about May 6, 1862.

That Carter Parks was then and had for more than six months previously been insolvent and unable to pay his debts is established to a reasonable certainty by the evidence.

May 7, 1862, Deatherage filed his petition against bis principal and cosecurities seeking from them contribution, and alleging that various sales and transfers therein named had been made respectively by them in contemplation of insolvency and with a view to prefer some to the exclusion of other creditors, and asked that the property so sold and transferred be held for the benefit of all the creditors under the Statute of 1856.

Several suits and cross-suits were consolidated and heard together, and the court subjected some of the property to the general creditors and confirmed the sale of others; therefore, only such transfers as are involved in this appeal will be noticed, as no appeal is prosecuted from the judgment subjecting the property.

In December, 1861, Parks sold some twelve mules for $915 in discharge of a debt he then owed O. P.- Burnham; the trade was made with his father, Thompson Burnham, who received the mules, and seems to have kept possession of them; these mules were received at from some $10 over their then market value. O. P. Burnham claims the mules as his, and insists that as he was not made a party to the original petition, and no allegation made against him until the amended petition was filed making him a party, and that this being more than six months after the purchase and possession of the mules, he cannot be disturbed. That if it should be regarded as a purchase by his father, he cannot be disturbed as he was no creditor of Parks, but paid for the mules bona fidely by settling the debt of C. P. Bfimham. The court dismissed the petition as to these mules.

[52]*52January 18, 1862, Parks sold to Peter Phelps thirty-two and one-fourth acres of land, and at same time transferred him a title bond of David Noble, Jr., for another tract of fourteen acres, and three days thereafter, and in tbe same month, conveyed to Phelps, as trustee for the benefit of his creditors, his slaves and personalty of every kind.

June 24, 1862, he filed an amended petition, alleging that previous to the deed of trust Parks had sold his relative, William Parks, several mules; and to Phelps several mules in liquidation of demands and with the design to prefer them, etc. The transfer of the title bond of David Noble, Jr., for the fourteen acres seems not to have been especially noticed in any of plaintiff’s pleadings.

Phelps and William Parks are called on to disclose the number and value of the mules purchased, and from the response and evidence it appears William Parks got two mules at $160; January 2, 1862, on a debt he held on Carter Parks, but neither the response nor evidence shows whether Phelps got any.

The court held the thirty-two and one-fourth acres of land subject to the payment of the general creditors which Phelps had purchased, but dismissed the petition as to the fourteen acres included in D. Noble’s title bond, and as to the mules alleged to have been purchased by both Phelps and William Parks.

It is insisted for Phelps that this fourteen acres is not in controversy, and that the purchase of the mules is not proven, and if it was, that it had been more than six months before the sale was attacked, and he cannot be disturbed.

Also for William Parks that his purchase was bona fide, and made more than six months before assailed.

D. A. Chenault held a note on C. Parks, W. T. Crews, and D. Noble, Jr., and O. Parks held a note on D. Noble, Jr. It was arranged by the latter with Chenault to become paymaster to him for $383.59, and at the same time executed a mortgage on thirty-six acres of land to secure it; whereupon Chenault released that much of his debt on Parks, Crews, and D. Noble, Jr. Barnett & Co. and Holloway & Co. obtained judgments against D. Noble, Sr., and had their executions-April 4, 1862, and caused the land so mortgaged to be levied on subject to the mortgage, and Holloway purchased it at execution sale at two-thirds of its appraised value, and paid off the mortgage all before Deatherage filed his petition.

Deatherage insists that this mortgage to Chenault was done in [53]*53contemplation of insolvency, and with a design to prefer him, and comes with the provisions of the Statute of 1856, and that it transferred all his property to his creditors, and that the subsequent executions, levies, and sale of Barnett & Co. and Holloway & Co. were illegal, and did not divest the creditors of their rights..

The court dismissed the petition as to this land.

Rice P'ortwood owed T. J. Noble two notes of $900 each as part of purchase price for land; T. J. Noble’s vendor owed to Oaperton over $1,200 for .this land, which-T. J. Noble was to pay, and to secure this he transferred the first note due on P'ortwood and a sufficiency of the second, and delivered the notes to Oaperton; he also owed Phelps about $350, and transferred a sufficiency of the second note to pay this debt, which still left about $220 of the second note undisposed of by T. J. Noble. D. J. Rowland held a debt for about $462 on O. Parks, W. I. Crews, and T. J. Noble, and obtained a judgment against Parks and Crews; Noble having gone to Illinois he could not be served with process. Roland made nothing on his judgment, but by suit in chancery attached the remainder of the notes of Portwood to T. J. Noble in Oaperton and Phelps’ hands, in April 1862. Cox, by petition, which he made an answer and cross-suit, was made a party June 23, 1863, and he assailed these assignments to Oaperton and Phelps as done in contemplation of insolvency, and with a design to prefer them by Noble, and claims that the remainder of the Portwood notes not assigned'to Oaperton and Phelps had been assigned to him by T. J. Noble in contemplation of insolvency and with a design to prefer him, and insists that this inured to the benefit of all the creditors of T. J. Noble; that he then held a note on C. Parks with said Noble as security.

The court dismissed his suit as to the assignments of Oaperton and Phelps, from which he has not appealed; it also dismissed his suit as to the remainder of these debts, and gave Rowland the benefit thereof on his attachments, and of this C’ox complains, and now insists that he has established a parol assignment of this remainder to himself and should, therefore, be preferred to Rowland’s attachment.

The answer of Thompson Burnham to Deatherage’s petition does not disclose any other ownership of the mules bought by him of Carter Parks than as charged in the petition and as indicated by his possession, making him the ostensible owner, nor is ownership set up by C. P. Burnham in his answer to Deatherage’s [54]*54amended petition; therefore, upon the pleadings and evidence we must determine whether Thompson Burnham’s purchase was made for the purpose of securing O. E. Burnham’s debt, and whether the sale was made by Parks in contemplation of insolvency, and with a view to prefer some of his creditors.

O. E.

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

Cite This Page — Counsel Stack

Bluebook (online)
1 Ky. Op. 50, 1867 Ky. LEXIS 221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deatherage-v-park-kyctapp-1867.