Fouke v. Fleming

13 Md. 392, 1859 Md. LEXIS 36
CourtCourt of Appeals of Maryland
DecidedMay 31, 1859
StatusPublished
Cited by37 cases

This text of 13 Md. 392 (Fouke v. Fleming) 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
Fouke v. Fleming, 13 Md. 392, 1859 Md. LEXIS 36 (Md. 1859).

Opinion

Eccleston, J.,

delivered the opinion of this court.

In this case an attachment was issued, at the instance of theappellees, out of the Circuit court for Washington county, in March 1857, against Israel Russell, and was laid on two canal-boats.

[403]*403The attachment being returned, Isaac Fouke, the appellant, appeared as claimant of the property attached, asserting his claim, under a deed made to him by said Russell, prior to the issuing of the attachment.

At the trial, in support of his claim, the appellant offered the deed from Russell, bearing date the 30th of January 1857, for the two canal boats, and other articles of personal property. It was recorded in one of the land record hooks of Washington county, Maryland, on the day of its date, after it had been acknowledged by Russell, on the same day, before a justice of the peace of the State of Maryland, in and for Washington county: the signing, sealing and delivery of which deed were admitted by the plaintiff. And, by agreement of the parties, the same was read to the jury, subject to all objections as to its admissibility and legal effect and validity, to be raised by prayers.

It was agreed that, the debt, for which the attachment, issued, was due and owing before, and on the day of the date of the deed, and also at the time of the issuing of the attachment; that the writ of attachment states the correct, amount of such indebtedness; and further, that Israel Russell, the defendant, was, at the time of issuing the attachment, a resident and citizen of the State of Virginia.

It was admitted that the property attached is the same, or part of the same, mentioned in the deed, and that the attachment proceedings were regular.

At, the instance of the plaintiffs’ counsel the courCgavc the following instruction:

“That, the said deed of assignment offered in evidence, and read as aforesaid, is void in law as against the plaintiffs, if the jury find, that the said Israel Russell, the assignor, was, at the time of making said assignment, indebted to the said plaintiffs on tiie claim for which the attachment, issued in this cause.”

To the granting of this instruction the claimant, Fouke, excepted, and upon the rendition of the verdict and judgment against him, he appealed.

The question to be decided is, whether the deed from Russell to Fouke, transferred to the latter such a title to the pro[404]*404perty in dispute, as should have prevented a judgment of condemnation thereof, under the attachment; or in other words, whether the deed was void as against the appellees.

They insist 'that it is, and in support of this position they rely upon the principles established by the following cases: Green & Trammell vs. Trieber, 3 Md. Rep., 11. Sangston vs. Gaither, 3 Ibid., 40. Malcolm vs. Hodges, 8 Ibid., 418, and Inloes vs. American Exchange Bank, 11 Ibid., 173.

In Green & Trammell vs. Trieber, the grantor’s deed included all his property, and he was insolvent at the date of the deed. He “reserved to himself the possession and enjoyment of all his property for at least six, perhaps for twenty-four months, and, indeed, for an indefinite time, if the trustees should not think proper to sell, and none of the preferred creditors should require the sale to be made. He also reserved to himself the surplus, after payment of the claims of the assenting creditors, and of Brady, (whose assent was not required,) to the exclusion of all other creditors, who could, in no event, obtain any part of their claims by the provisions of the deed, and these benefits, confined as they were to such of the named creditors as might assent, were extended to them only on the condition that they would, while the debtor was using and enjoying the property, grant further time on their claims against him.”

In Sangston vs. Gaither, the deed recited the indebtedness of the grantor to various firms and persons, and his desire to provide for paying the same. It conveyed the property, in trust,’^to be distributed to each creditor who should elect, within sixty days from the date of the deed, to come in and share in the trust, and should also file a sufficient release to the debtor, with the trustee, (and no other creditor whatsoever,) such a dividend of the assets as he should be found entitled to, in the proportion of the whole of the debts thereinbefore scheduled, to the whole amount of the nett assets. And the deed also provided, that the dividends, or proportions which would have been payable to such creditors, if any, as should not have released, should be retained by the trustee in such distribution, and paid over to the grantor, leaving such [405]*405creditors to their ordinary legal remedy against him. The surplus, if any, “after paying the debts aforesaid,” was to be paid to the grantor. In that case it. did not plainly appear whether the deed was an assignment of all the debtor’s properly or not. And there, as in a former casej the court said, “that an assignment for the benefit of creditors, exacting releases as the condition on which they might participate in the fund, must transfer all the debtor’s estate.” Nevertheless there the deed exacted releases, and also reserved to the debtor the dividends of such creditors as might neglect or refuse to execute releases. He likewise reserved to himself any surplus which might remain after satisfying the creditors named in the deed. See pages 46, 48 and 49 of 3 Md. Rep.

In Malcolm vs. Hodges, the deed professed to convey all the estate and effects of the grantors, in trust for those of their creditors, who should, on or before a certain day, sign a release to the debtors, from all their individual and co-partnership liabilities to the said creditors. It was held, that such a deed “must not only convey all the property of the debtor, but must, in terms, dedicate the whole for the benefit of th© creditors, subject to such preferences as might be declared in the deed. And there must not be any reservation to the debtor, express or implied.”

Inasmuch as the deed expressly restricted the application of the trust funds for creditors, to those creditors only who might come in within a certain time and execute releases, and nothing being said in regard (o any surplus, the surplus, if any, would result, to the debtor. The deed was, therefore, considered void, because there was an implied reservation of such surplus to the grantor.

In Inloes vs. American Exchange Bank, the provision which avoided the deed was that which gave the trustee power, at his discretion, to sell the property conveyed by the deed, consisting of a stock of goods in trade, “gradually in the manner and on the terms in which, in course of their business,” the grantors “-had sold and disposed of their merchandized

In reference to the deed before us there is nothing from [406]*406which we can consider it to be a general assignment of all the grantor’s property, for the benefit of his creditors generally, or that he was in insolvent circumstances. It exacts no releases, nor does it reserve the property for his use and enjoyment, either for a short or long period of time, but gives authority to the trustee “to sell and dispose of the same at public or private sale, and upon such terms and notice as he may deem most expedient.”

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Bluebook (online)
13 Md. 392, 1859 Md. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fouke-v-fleming-md-1859.