Dietus v. Fuss

8 Md. 148
CourtCourt of Appeals of Maryland
DecidedDecember 15, 1855
StatusPublished
Cited by13 cases

This text of 8 Md. 148 (Dietus v. Fuss) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dietus v. Fuss, 8 Md. 148 (Md. 1855).

Opinion

Eccleston, J.,

delivered the opinion of this court.

The first proposition in the plaintiff’s first prayer, relied upon as furnishing evidence, in connection with other matters, to justify the inference, that the bill of sale alluded to was made to hinder and delay creditors, and therefore void, is simply, that when Gotlieb Dietus executed the instrument he was indebted to several persons, who remained unpaid up to the time of trial. There is no question submitted to the jury as to the amount of his indebtedness or the extent of his means, nothing as to whether he was in embarrassed or insolvent circumstances further than what might be conjectured from the fact of his having several creditors whose claims were not subsequently paid. The language of the instruction would have been complied with if the jury had believed Gotlieb Dietus’ creditors were three in number, to each of whom he owed five dollars, whilst he was worth forty thousand dollars. A prayer containing a proposition so well calculated to mislead a jury-should not. have been granted.

The second prayer on behalf of the plaintiff presents, not only the facts, but also the inference to be drawn from them, as set forth in the first; and if that, is erroneous this likewise must be so.

Before expressing an opinion in reference to the plaintiff’s [158]*158third prayer it is proper to notice somfe of the principles relating to the subject of conversion, for the action of trover cannot be maintained without a conversion. It may be either direct or constructive, and therefore may be proved directly or by inference. When the plaintiff fails in proving an actual conversion it will be necessary for him to give evidence of a demand and refusal having been made at a time when the defendant had the power to give up the goods. A demand and refusal are only evidence of a prior conversion, which may be explained and rebutted by evidence to the contrary. 2 Greenl. on Ev., secs.. 642, 644. Edwards vs. Hooper, 11 Mees. & Wels., 363.

In Nixon vs. Jenkins, 2 H. Bl. Rep., 135, goods were sold to the defendant by a party in contemplation of insolvency, and with a design of defeating the claims of his creditors. He committed an act of bankruptcy shortly after the' sale, and an action of trover was instituted by his assignees to recover the value of the goods, in which they gave no proof of a demand and refusal. On behalf of the plaintiff it was insisted, that because the sale was fraudulent no demand and refusal need be proved, that being only necessary where the possession was originally lawful, and then the possession was wrongful.

But it was held by the court, That a demand and refusal were necessary to maintain the action. When the sale was made the parties were competent to contract; there was no unlawful taking of the goods, though the transaction was liable to be impeached by the assignees. They might either affirm or disaffirm the contract, and if they thought proper to dis-affirm it they ought to have demanded the goods, a refusal to deliver which would have been evidence of a conversion.” And in Browne on Actions at Law, 440; the author says, If a trader, in contemplation -of bankruptcy, make a collusive sale or fraudulent preference, the assignees cannot maintain trover without a demand and refusal.” In support of which position he refers to 2 H. Bl. Rep., 135; 9 B. & C., 764; and 4 M. & R., 547. See also Stewart vs. Spedden, 5 Md. R., 449, as to when a demand is necessaiy.

Although the principle stated by Brown, and recognized in [159]*159the authorities cited by him be true, yet if a vendee, under such a sale, disposes of the property by sale or otherwise, after his vendor has made application for the benefit of the insolvent laws, or if prior to the application, whilst the goods were remaining in the possession of the original vendor, he may have made a second sale of them, and subsequently to the petition the first vendee adopts or sanctions that sale, such conduct will amount to a conversion without a demand and refusal, so far as relates to the sale of the goods so adopted or sanctioned. The authorities referred to by the appellee’s counsel show this view of the subject to be correct. And surely it would not bo promoting the ends of justice to hold, that without a demand and refusal the trustee of an insolvent could not maintain an action of trover against the first vendee under such circumstances, because a demand aud refusal, after he had parled with all authority and control over the property, would not make him responsible in trover, as he would have no power to comply with the demand when made.

The third prayer asked the court to instruct the jury, if they should find that when the suit was instituted the plaintiff had been appointed permanent trustee of Gotlieb Dietus, and had given bond as such; and if they should also find, that the bill of sale given in evidence was not made upon the consideration therein stated, and was'not made bona fide, that then the said bill of sale was clearly and utterly void, and the plaintiff was entitled to recover what the jury might find to be the value of the property therein mentioned. If we are to consider this prayer as having any reference whatever to the subject of conversion, it must rest exclusively upon the hypothesis, that the bill of sale was fraudulent and void, and that the simple execution of it operated as a sufficient conversion to sustain the suit; without requiring that the jury should find anything in reference to the possession of the goods, whether they had been resold or in any way disposed of, or whether there had been a demand and refusal. The bill of sale was made before the grantor filed his petition as ail insolvent, and even admitting it was fraudulent, and the jury might have believed it to be so, still that alone, unsupported by any other fact in regard [160]*160to an actual conversion, or to a demand and refusal, would not justify a verdict in trover in favor of the plaintiff. The prayer was therefore erroneous .-

The first prayer of the defendant was properly refused. The proposition contained in it is, that the plaintiff was not entitled to recover unless the jury believed the bill of sale had been made by the grantor with a view or intent of taking the benefit of the insolvent laws; and unless they should likewise believe the defendant had actual notice that the grantor Was insolvent at the time of executing the bill of sale, and of the intention of the grantor to apply for the benefit of the insolvent laws. This Was erroneous, because it .did not follow that if the bill of sale was not void under our insolvent laws it might not be successfully assailed under the statute of Elizabeth, in the opinion and belief of the jury.

Our reasons for thinking the court did right in refusing the defendant’s third prayer will be found sufficient, we think, to show there was no error in not granting his second prayer.

The position taken in the defendant’s third prayer is, that if the jury believed the defendant’s possession of the chattels in question, at any time prior to Gotlieb Dietus’ application for the benefit of the insolvent laws, was with the consent of Gotlieb Dietus; and should also believe that such possession ceased by the act and choice of Gotlieb prior to his application as an insolvent, and that at the time of the plaintiff’s alleged demand of.

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Bluebook (online)
8 Md. 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dietus-v-fuss-md-1855.