Filley v. Register

4 Minn. 391
CourtSupreme Court of Minnesota
DecidedDecember 15, 1860
StatusPublished
Cited by7 cases

This text of 4 Minn. 391 (Filley v. Register) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Filley v. Register, 4 Minn. 391 (Mich. 1860).

Opinion

Elandrau, J.

By the Court. I will briefly state tbe facts in tbe case wbicb raise tbe main points. On tbe 1st day of May, 1849, Samuel Burkleo, one of the Defendants, received tbe title to lands, in Stillwater, from certain parties by grant in fee. He held the title in bis own name until ythe 1st day of July, 1856, when be, together with tbe Defendant Susanna Burkleo, his wife, conveyed tbe same to one Elam Greely, who, in consideration of the grant to him, and on the same day, conveyed to Susanna Burkleo tbe lands in controversy. On tbe 13th day of November, 1857, Mrs. Burkleo and her husband conveyed the last mentioned lands to the Defendant Samuel Register. Burkleo was in business with one Mower from tbe fall of 1853, until the 13th day of November, 1857, when they failed. At tbe time of making tbe conveyance of tbe Stillwater property, the consideration for which Mrs. Burkleo received the lands in dispute, the firm of Burkleo & Mower were indebted in considerable amounts to various persons, among whom were tbe Plaintiffs. After the failure the Plaintiffs put their several demands in judgment, and now file this bill to set aside the deed from Burkleo and his wife to Register, and declare the lands so conveyed subject to the demands of tbe creditors of Burkleo; tbe Plaintiffs claiming that tbe whole transaction must be regarded in the light of a voluntary settlement of the lands by Burkleo upon his wife, which would be fraudulent and void as against his creditors existing at the time. The Defendants deny all fraud in the transaction, and allege that at the time of the conveyance, Mr. Burkleo owned property besides that in controversy, ample to pay all his debts ; also, that the property conveyed was bought with the money and property of Susanna Burkleo, [396]*396and was her own equitably, although the title was taken in her husband by mistake.

The case was sharply contested in the court below, and the jury finding for the Defendants, the Plaintiffs bring the case here on an appeal from an order denying them a new trial. They present us twenty-eight points for consideration. The view, however, that we have taken of the case, will divide it into two heads or questions, one of which will be subdivided in the discussion.

The first point is, whether such a conveyance is void per se as against existing creditors. And the second is, if it is not void per se, but onlj prima facie evidence of fraud, as the court held below, did the court err in admitting or rejecting testimony upon the investigation of the questions of fact % I shall first consider the character of the conveyance as to existing creditors.

The general principle that a debtor cannot grant away his property to his family or a stranger by a voluntary conveyance, so as to interfere with the rights of his creditors, has been approved and adopted by all enlightened nations. It is so just in itself as to defy serious objection. It was declared in the Civil Law, and at a very early period established by the Common Law. 1 Story's Eq. Jur. Sec. 350; Dig. Lib. 42, tit. 8, l. 1, Sec. 1.

This principle was more fully carried into effect by subsequent Statutes of England, as follows : 50 Edward III. Ch. 6; 3 Henry VII. Ch. 4; 13 Elizabeth, Ch. 5, and 27 Elizabeth Ch. 4. The two first mentioned, were aimed against fraudulent gifts of chattels; the 13 Elizabeth against conveyances of lands to defeat or delay creditors, and the last, against fraudulent conveyances to defeat subsequent purchasers. It is proper to observe this difference in the English Statutes when examining the cases decided under them, as in some of them the wording of the Statute materially influences the decision of the case. They all, however, contain the same great principle, and have called forth a large amount of discussion in the numerous cases that have arisen under them; very learned jurists in this country and in England have held opposite views as to the effect of these Statutes upon voluntary convey[397]*397anees, some holding that as to existing creditors, the conveyance was absolutely void, and admitted of no explanation whatever. And others, that in such cases it was only prima facie fraudulent, but might be cleared up and sustained, if, at the time the conveyance was executed, the grantor had ample property, other than that conveyed, to satisfy all the demands against him, and the conveyance was otherwise bona fide. It would be an unnecessary task to undertake here a review of the cases upon this subject, when so many such reviews are furnished us by the elementary writers of the present day. (See discussion of the subject in 1 Story Eq. Jur. Secs. 351 to 365, inclusive; 2 Kents’ Com. p. 547 to 551, inclusive, and notes. See also, the cases of Read vs. Livingston, 3 John. Ch 481, and Seward vs. Jackson, 8 Cow. 406. I will merely arrange a few of the many cases involving this question under the points which I consider they sustain, adding, as I said above, that some of them are upon the question of subsequent purchasers and creditors, and some upon existing demands when the voluntary conveyance was executed. Of the. English cases which sustain the doctrine that no voluntary conveyance can stand against an existing creditor of the grantor, are the following : Prodgers vs. Langham, 1 Sid. 133; White vs. Hussey. Prec, in Ch. 14; Gardiner vs. Painter, Cas. temp. King C. p. 65; Tonkins vs. Ennis, 1 Eq. Cases, Abrg. 334; Russell vs. Hammond, 1 Atk. 15; Twynes' Case, 3 Co. R. 89; Brown vs. Jones, 1 Atk. 188; Wheeler vs. Carlyl, Ambl. 121; White vs. Samson, 3 Atk. 410; Beaumont vs. Thorps, 1 Ves. Sen. 27; Lord Townsend vs. Windham, 2 Ves. Sen. 1-10; Doe vs. Manning, 9 East. 63; Nunn vs. Wilsmore, 8 D. & E. 528; Doe vs. Martyr, 4 B. &. P. 332; Buckle vs. Whitchell, 18 Ves. 100; Hill vs. The Bishop of Exeter, 2 Taunt. 82.

While it may fairly be collected from these English cases that the Judges who decided them meant to hold that a voluntary conveyance could not stand against a prior existing debt under any circumstances, but as to such was void by presumption of lafr; yet it should not be overlooked that the circumstances and facts of many of the cases would have warranted the decisions upon the assumption that the deeds [398]*398were only prima facie evidence of fraud, and a litigation of an issue joined upon tliát theory.

The following are some of the English cases that hold that the deed is not void per se, but may be vindicated upon proof of the bonafides of the transaction : Sagitary vs. Hide, 2 Vern. 44; Sir Ralph Bovy’s case, 1 Ventr. 193; Walker vs. Burrows, 1 Atk. 93; Lord Teynham vs. Mullins, 1 Mod. 119; East India Comp. vs. Clavell, Gibb. Eq. Rep. 37; Jenkins vs. Kemishe, Hardres, 398; Garth vs. Mois, 1 Kebles, 486; Lush vs. Wilkinson, 5 Ves. 384; Cadogan vs. Kennett, Cowp. 432; Doe vs. Rutledge, Cowp. 705.

I will now examine the effect that the English decisions have had upon the courts of this country, so far as my limited resources will permit me.

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Bluebook (online)
4 Minn. 391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/filley-v-register-minn-1860.