Dick v. Hamilton

7 F. Cas. 660, 1867 U.S. App. LEXIS 747
CourtU.S. Circuit Court for the District of Oregon
DecidedDecember 2, 1867
StatusPublished

This text of 7 F. Cas. 660 (Dick v. Hamilton) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dick v. Hamilton, 7 F. Cas. 660, 1867 U.S. App. LEXIS 747 (circtdor 1867).

Opinion

DEADY, District Judge.

The defendants, Alexander and Thomas Hamilton, have not answered, and as against them the complaint is taken for confessed. Counsel for the complainant maintained that the default of these defendants, and the consequent admission by them of the facts stated in the complaint, is to be taken as evidence against their co-defendant, Christina Hamilton. But, in my judgment, the rule of law is otherwise; and consequently, in arriving at the foregoing conclusions of fact, as between the complainant and Christina Hamilton, I have disregarded the default of these defendants. The admission of these defendants, arising from their failure to answer, cannot in any view of the question have a more favorable effect for the complainant than if such defendants had answered and affirmatively admitted the truth of the complaint. The general rule seems well established, that the separate answer of one defendant is not evidence to sustain the complainant’s case against a co-de-feindant. The exceptions to this rule are not uniformly defined in the authorities. But the current of them appears to limit the exceptions to cases where defendants stand in such a relation to each other that the admission of each, if not under oath, would be evidence against the others, as in the case of several defendants standing in the relation of copartners, or as having a joint interest in the subject matter of litigation. Christie v. Bishop, 1 Barb. Ch. 105; Leeds v. Marine Ins. Co., 2 Wheat. [15 U. S.] 380; Chapin v. Coleman, 11 Pick. 331, 1 Greenl. Ev. § 178. It seems, also, that the exceptions include the case where one defendant succeeds to the rights of another, or claims through another, pending the litigation. Osborn v. Bank of the United States, 9 Wheat [22 U. S.] 738; Cowen & Hill’s Notes, 648, 650. This case does not come within any of these exceptions. Even admitting then (which is not clear) that the silence of these defendants is equivalent, as to their co-defendant, to an answer affirmatively admitting the truth of the facts stated in the complaint, still such admission is not evidence against Christina Hamilton.

The complainant alleges in his complaint that the various conveyances by which Christina Hamilton was invested with the legal title to block 250 and lots 3, 4, 5 and 6 in block' ‘253, were in fact procured'by the husband and upon his money and credit, for the purpose of defrauding his creditors. The-answer of Christina Hamilton denies these allegations of the complaint The legal effect of the transactions in question and the intent with -which they were procured and done must be controlled and -determined by the law arising upon the facts found. The $1.200 which the wife received from the sale and use of her land in Missouri, by operation of law, became the property of the husband, as soon as she received it. The provision in the state constitution (article 15,- § 5) concerning the property of married women, does not apply, as the constitution did not go into force until February 14, 1859, nearly two years after the receipt of the money by the wife. This being the case, the purchase-by the wife of block 250 with $500 of that money, was in contemplation of law a purchase by the husband for her benefit The circumstances under which this money was obtained by the husband may disclose an adequate and proper motive for the conveyance to the wife, but they fail to show that the consideration in point of law moved from her. It is a post nuptial settlement— the consideration moving from the husband and the conveyance being made to the wife, and, as to the creditors of the former, is to be considered as a voluntary conveyance from the husband to the wife. Sexton v. Wheaton, 8 Wheat. [21 U. S.] 241. As between the latter, there are no circumstances shown upon which the law would imply that the wife took the legal estate in trust for the husband. Upon the facts proved, the conveyance must be considered as an absolute gift from the latter to the former. The husband being -free from debt at the date of the conveyance, it must be sustained, unless made with intent to defraud subsequent creditors, like the complainant. 2 Kent, Comm. 173; Beade v. Levingston, 3 Johns. Ch. 481. The statute of frauds of this state in favor of creditors (Code Or. 656) is substantially a copy of St. 13 Eliz. c. 5. The English and American decisions made upon this statute, all hold that a voluntary conveyance to a wife or child by a husband or father, not inr debted at the time, is valid as against subsequent creditors, unless it affirmatively appears that it was made with intent to defraud and deceive them. There is nothing in the facts of this case to warrant the conclusion that this conveyance was made with intent to deceive and defraud subsequent creditors, unless it be that the grantor subsequently became insolvent. In some of the English cases it has been held that subsequent insolvency of the grantor is sufficient to warrant the conclusion that the conveyance was made with a view to such insolvency, and therefore with intent to defraud and deceive. But in these cases the insolvency occurred soon after the execution of the deed—it appeared to have been contemplated [663]*663:by the grantor’at the time,'and'it-'is to be' supposed, as was the custom then in England, that the conveyance was secret—not •put upon record—and that therefore the subsequent creditors -acting upon the unchanged and visible possession of the grantor, were ■misled and deceived into crediting him upon false appearances.

In this case it is shown, that the grantor did not contemplate insolvency at the time • of the conveyance to the wife, and that he did not even contemplate engaging in the mercantile partnership which caused his insolvency for nearly a year afterwards. A fair and reasonable motive is shown for the -conveyance—the investment by the husband of a part of the money which he had received from his wife, for her benefit. In addition, the conveyance was put upon record within sis days after its execution. This is an important fact, and in my judgment sufficient in itself to show that the same was not made to defraud and deceive subsequent creditors. In Sexton v. Wheaton, 8 Wheat. [21 U. S.] 251, the supreme court, in con.trasting the circumstances of that case with -those of Stephens v. Olive, 2 Brown, Ch. 90, say—“The reasons why they’’ (these circumstances) “should not be considered in this case as indicating fraud, were stronger than .in England. In this District” (of Columbia), “every deed must be recorded in a place ure-■seribed by law. All titles of land are placed upon the record. The person who trusts another upon the faith of his real property, knows where he may apply to ascertain the nature of the title held by the person to .whom he is about to give credit. In this ■case, the title never was in Jos. Wheaton. His creditors, therefore, never had a right to trust him on the faith-of this house and lot.” So in the ease under consideration. ■The title to block 250 was never in the husband, and prior to the conveyance of it to the wife, the husband was never in the possession or control of it Since February 19, 1858, the records of the county have shown that .the title was in the wife. Under these circumstances it would be preposterous to -presume that Vantine & Co. trusted the husband in 1863-4 upon the faith of this property, and -there is as little reason for concluding that the husband procured the conveyance to be made and put upon record with the intent to defraud or deceive his subsequent creditors.

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Related

Christie v. Bishop
1 Barb. Ch. 105 (New York Court of Chancery, 1845)
Reade v. Livingston
3 Johns. Ch. 481 (New York Court of Chancery, 1818)

Cite This Page — Counsel Stack

Bluebook (online)
7 F. Cas. 660, 1867 U.S. App. LEXIS 747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dick-v-hamilton-circtdor-1867.