Edwards v. Dickson

2 S.W. 718, 66 Tex. 613, 1886 Tex. LEXIS 580
CourtTexas Supreme Court
DecidedOctober 29, 1886
DocketCase No. 2058
StatusPublished
Cited by28 cases

This text of 2 S.W. 718 (Edwards v. Dickson) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edwards v. Dickson, 2 S.W. 718, 66 Tex. 613, 1886 Tex. LEXIS 580 (Tex. 1886).

Opinion

Gaines, Associate Justice.

This suit was brought by appellant to recover of appellee, Dickson, as sheriff, and the other appellees, as sureties on his official bond, damages for the seizure of a stock of drugs by Dickson under an execution against one W. H. Blythe. Appellees pleaded a general denial, and, for special answers, set up that the sale of the goods from Blythe to appellant was fraudulent and void as to creditors of Blythe, and, also, that by reason of certain representations made by appellant, he is estopped to assert his claim to the property.

The first error assigned by appellant, is as follows: “The court erred in its charge to the jury in this: The court instructs the jury in substance and effect, that the sale from Blythe to Edwards would be fraudulent and void, if Blythe intended to defraud his creditors, and Edwards knew or ought to have known of such intent, even though he (Edwards) took the goods in payment of a bona fide debt due to him from Blythe, and took no more goods than enough to pay such debt.”

The right of a creditor to purchase of a debtor in.failing circumstances a sufficient amount of property to pay his debt, is well recognized by authority, although the necessary consequence of the transaction is to hinder and delay other creditors in the collection of their debts. Greenleve, Block & Co. v. Blum, 59 Tex., 126; Iglehart v. Willis & Bro., 58 Tex., 306; Schneider & Davis v. Sansom, 62 Tex., 201; Frazer v. Thatcher, 49 Tex., 26; Edrington v. Rogers, 15 Tex., 195; Hancock v. Horan, Id., 511.

This principle follows a deduction from the right of an insolvent debtor to prefer one creditor to another, and is subject to the qualification, that no more property must be transferred than is essential to pay the debt at a fair valuation, and that the transaction must be open and bona fide-, and in saying that the transaction must be made in good [615]*615faith, we understand, it is meant, that the sale must be absolute, that is, not attended with any secret trust for the benefit of the debtor, and must be a real and not a mere colorable transaction. (See Greenleve v. Blum above cited.) If it be a real transfer of the property unaccompanied with any secret understanding or trust on behalf of the debtor, and with intent to satisfy the debt, and no more property be sold than is necessary for that purpose, then it matters not whether or not the debtor intended to hinder or delay his creditors, or whether the creditor knew or ought to have known of such intent, if it existed. Let us apply these principles to the instruction complained of. In the preceding paragraphs of the charge the court gives a clear exposition of the law upon this question and applies to appellant’s phase of the case. Then follows the following instructions:

7. “If you believe from the evidence that Blythe sold his goods, etc., described in plaintiff’s petition, to plaintiff for the purpose of hindering, delaying or preventing Blythe’s creditors from the collection of their debts, and that plaintiff, Edwards, knew of Blythe’s intent, or ought to have known by the exercise of proper deligence of said intent at the time said sale from Blythe to Edwards was consummated, you will find for defendant.”
8. “If Blythe’s intent was fraudulent (of which you are the judges) and was or ought to have been known to plaintiff at the time of said sale, Edwards could acquire no right to said stock of drugs, etc., to the prejudice of Blythe’s other bona fide creditors (if he had any such), even though Edwards took no more goods than satisfied a debt Edwards may have held against Blythe.”

■ Plaintiff’s case, as developed by his testimony, was that he had bought the goods of the defendant in execution before the levy inpayment of a debt due him by the latter, and that the value of the goods was not more than sufficient to pay the debt; that delivery had been made, and that he was in possession at the time of the levy. As applied to such a case, the charge is erroneous. It instructs the jury in the first paragraph quoted to find for defendant if they believed that Blythe sold the goods for the purpose of hindering, delaying or preventing Blythe’s creditors from the collection of their debts, and that plaintiff knew, or ought to have known, of the intent, etc. This is in conflict with a previous paragraph of the charge, and, however one learned in the law might construe the several paragraphs upon this branch of the case, when taken together, it is clear that the particular instruction under discussion, was calculated to mislead the jury, to Appellant’s prejudice, and is reversible error. (See Railway Company [616]*616v. LeGierse, 51 Tex., 189; Bailey v. Mills, 27 Tex., 434; Willis & Bro. v. McNeil, 57 Tex., 465; Chandler v. Fulton, 10 Tex., 2.)

The second assignment of error is “that the court erred in its charge to the jury in this: it instructs the jury that the law would presume fraud from the unexplained possession by the seller Blythe.” The rule laid down in this state is that possession on part of the seller after the sale is not fraud per se, but is prima facie evidence of fraud, subject to be rebutted by other evidence explanatory of the possession showing that it is consistent with a fair transaction. Bryant v. Kelton, 1 Tex., 415; Converse v. McKee, 14 Tex., 20; McQuinnay v. Hitchcock, 8 Tex., 33; Hancock v. Horan, 15 Tex., 507; Mills v. Walten, 19 Tex., 271; VanHook v. Walten, 28 Tex., 59; Gibson v. Hill, 21 Tex., 225.

In the case last cited the judgment was reversed because of the failure of the court below, at the request of appellant, to give a charge substantially the same as that complained of in the assignment of error under consideration. It may be that the instruction before us was too general, and under the facts of the case should have told the jury what the law considered possession on part of the seller, and what evidence, explanatory of such possession, would rebut the presumption of fraud raised by such possession. If so, the remedy of appellant was to ask an additional charge upon the point. Hot having done so, he cannot now complain.

Appellees, among other things, pleaded in substance, that long before the levy of the execution, by virtue of which appellee, Dickson, as sheriff, seized the goods in controversy, that appellant represented to the' attorneys of the plaintiff in execution, that if they would hold up and not levy said execution, said stock of goods should not be transferred except in the usual course of trade, and should remain subject to the levy of the execution; and that, relying upon said representations, said attorneys did hold up said executions, and that said representations were false and fraudulent, and deceived said attorneys, etc.; and they set up, that by reason of said representations, appellant was estopped to claim the goods levied on.

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

Related

Lisa Kramer, F/K/A Lisa Kastleman v. Bryan Kastleman
508 S.W.3d 211 (Texas Supreme Court, 2017)
D. C. Hall Transport, Inc. v. Strickland Transportation Co.
285 S.W.2d 388 (Court of Appeals of Texas, 1955)
Mecom v. Gallagher
213 S.W.2d 304 (Court of Appeals of Texas, 1947)
Barnes v. Boyd
72 S.W.2d 573 (Court of Appeals of Tennessee, 1934)
Reclamation Co. v. Western Brokerage & Supply Co.
57 S.W.2d 274 (Court of Appeals of Texas, 1932)
Ross v. Isaacs
54 S.W.2d 182 (Court of Appeals of Texas, 1932)
Longbotham v. Ley
47 S.W.2d 1109 (Court of Appeals of Texas, 1932)
Brooks v. O'Connor
39 S.W.2d 14 (Texas Supreme Court, 1931)
Keene v. Gold
27 S.W.2d 631 (Court of Appeals of Texas, 1930)
Booty v. O'Connor
287 S.W. 282 (Court of Appeals of Texas, 1926)
Neal v. Pickett
280 S.W. 748 (Texas Commission of Appeals, 1926)
The Royal Tailors v. Joseph
239 S.W. 639 (Court of Appeals of Texas, 1922)
San Antonio Nat. Bank v. Conn.
237 S.W. 353 (Court of Appeals of Texas, 1922)
Wrather v. Parks
227 S.W. 513 (Court of Appeals of Texas, 1921)
Rachofsky v. Rachofsky
203 S.W. 1134 (Court of Appeals of Texas, 1918)
Grosman Co. v. F. De Witt & Son
198 S.W. 332 (Court of Appeals of Texas, 1917)
Citizens' State Bank v. McShan
172 S.W. 565 (Court of Appeals of Texas, 1914)
Tardio v. First Nat. Bank of Bryan
166 S.W. 1180 (Court of Appeals of Texas, 1914)
Ward v. San Antonio Life Ins. Co.
164 S.W. 1043 (Court of Appeals of Texas, 1914)
Missouri, K. & T. Ry. Co. of Texas v. Rogers
141 S.W. 1011 (Court of Appeals of Texas, 1911)

Cite This Page — Counsel Stack

Bluebook (online)
2 S.W. 718, 66 Tex. 613, 1886 Tex. LEXIS 580, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edwards-v-dickson-tex-1886.