Fredericks v. Davis

3 Mont. 251
CourtMontana Supreme Court
DecidedAugust 15, 1878
StatusPublished
Cited by1 cases

This text of 3 Mont. 251 (Fredericks v. Davis) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fredericks v. Davis, 3 Mont. 251 (Mo. 1878).

Opinion

Wade, C. J.

The plaintiff brings this action for partition and accounting, alleging that she is tenant in common with the defendant Davis, and the owner of an undivided one-half of a certain flouring mill and premises situate in the upper Willow creek valley, Gallatin county; that she has expended large sums of money in improving, repairing and operating the same; that defendant Gilbert, as her mortgagee, holds a lien thereon; that the same cannot be partitioned ; whereupon she. asks for a sale thereof; for an accounting between herself and Davis; and for a distribution of the proceeds of sale according to the respective rights, liens and interests of the parties. The defendant Davis admits that he is the owner of the undivided one-half of the property, but denies that the plaintiff has any interest therein, [253]*253and avers that W. A. Fredericks, the husband of the plaintiff, is his co-tenant, and the owner of an undivided one-half thereof; charges that the title of plaintiff and the mortgage to Gilbert are fraudulent and void, taken and given to hinder, delay, and defraud creditors, at the instance of W. A. Fredericks, the real owner; and for a cross-complaint alleges that W. A. Fredericks at the time of the erection of said flouring mill and prior thereto was greatly indebted to this defendant, for which the defendant secured a lien upon Fredericks’ interest in the mill by commencing a suit against him and levying an attachment thereon; whereupon he asks that the mortgage to Gilbert and the conveyance to the plaintiff be declared null and void; for an accounting between himself and Fredericks, and prays that the property be sold and the proceeds brought into court to await the order of distribution thereof.

A brief statement of the facts is necessary to present the questions raised on this appeal. It appears that prior to July 1, 1871, Davis held the title to a certain saw-mill situate near Bozeman, Gallatin county, an undivided one-half of which, he says, he held in trust for W. A. Fredericks, the owner, the plaintiff and W. II. Drew declaring that Fredericks had no interest therein. Be this as it may, on that day,- by a conveyance or bill of sale in writing, Davis sold and conveyed to the plaintiff and W. 'H. Drew the said saw-mill for the sum of $2,000, together with all the privileges and appurtenances thereto belonging, agreeing to warrant and defend the title to the property so sold, which instrument of conveyance was duly recorded in Gallatin county records.

It further appears that on the 30th day of July, 1871, Davis and W. H. Drew entéred into a contract in writing for the construction and erection of a flouring mill in the upper Willow Creek valley ; that pursuant to the terms thereof, such mill was erected, and that each of said contracting parties became the owner of an undivided one-half interest therein and the rights, privileges and premises thereto belonging. W. A. Fredericks was a millwright and worked for Drew in the construction of the mill, and subsequently, upon its completion leased Davis’ [254]*254interest, and took charge of the business of manufacturing flour therein. On the 30th day of March, 1874, the plaintiff sold her interest in the saw-mill to Drew for $2,000, receiving in payment certain notes and securities, and at the same time Drew sold to plaintiff his interest in the flouring mill for the sum of $2,000, which sum he and the plaintiff both say was paid in cash at the time of the sale and purchase, which sale was duly evidenced by a deed of conveyance, duly executed by Drew and wife to plaintiff, and recorded in the county records. After the plaintiff had thus acquired Drew’s interest in the mill, W. A. Fredericks, her husband, continued the business of manufacturing flout therein until the expiration of his lease from Davis, and subsequently thereto, the plaintiff brings this action for partition, basing her right and title to the undivided one-half of the mill and premises upon the deed thereof from Drew and wife to herself.

Davis attacks this conveyance by alleging that W. A. Freder-icks was the owner of the undivided interest in the saw-mill, and that the same was conveyed to the plaintiff to hinder, delay and defraud creditors, and that the plaintiff traded her interest in the saw-mill thus acquired to Drew for his interest in the flouring mill, whereby her title to the flouring mill became fraudulent and void.

On the trial the defendant Davis, for the purpose of showing that his bill of sale and conveyance of the undivided one-half of the saw-mill to the plaintiff was fraudulent and void as against creditors, offered to prove the consideration for such conveyance; that the same was paid by W. A. Fredericks, the husband of plaintiff, to whom he offered to convey, but was directed by the husband to convey to his wife, the plaintiff; the declaration of the husband that the property belonged to him, and also declarations of the wife to the same effect. This testimony was excluded and its exclusion is assigned as error.

In order to appreciate fully the nature of the evidence thus sought to be introduced, it should be further stated that Davis had previously testified that W. A. Fredericks was the real owner of the undivided one-half of the mill conveyed by him to plaintiff ; that Davis was the trustee of Fredericks, holding this title [255]*255for him ; that at the time of this conveyance Fredericks was largely indebted to Davis and others, and .was insolvent. He offers further to prove not only that Fredericks was the real owner of the property, but that he paid the consideration therefor mentioned in the bill of sale.

It therefore appears that Davis, at the time of the conveyance to plaintiff, knew that she had no interest in the property conveyed, and that as to the creditors such conveyance was fraudulent and void, and with this knowledge he promised to warrant and defend her title to the property.

In view of these facts, was the testimony offered in behalf of Davis properly excluded ? If the sale was fraudulent, Davis helped to perpetrate the fraud, and with a full knowledge of all the facts. Could he under such circumstances impeach his own conveyance by which the fraudulent sale was executed ? Having promised to warrant and defend the title of plaintiff, could he attack his own conveyance to show such title fraudulent and void ?

The mere asking of these questions suggests the inevitable answer they must receive. No man can be allowed to take advantage of his own wrong. Davis with a full knowledge of all the facts promised to warrant and defend a title that he knew to be fraudulent, and he cannot now he heard to declare the fraud in order to set such title aside. He cannot impeach his own deed. He cannot falsify his own warranty. So far as he is concerned the title of the plaintiff in the saw-mill after his bill of sale, conveyance and warranty was perfect. This doctrine is supported by the case of Phillips v. Wooster, 36 N. Y. 414, wherein the court says: “ The position which the plaintiff occupies in relation to the transaction complained of as fraudulent, excludes him from alleging the fraud, or claiming any benefit against it. The conveyance against which he now seeks to derive advantage from the property was made by himself, with a full knowledge of all the facts as they existed at the time, as we are bound to presume, since he has shown nothing to the contrary. So that if the money paid was the debtor’s, as he now insists it was, and the conveyance to the wife therefore [256]

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Cite This Page — Counsel Stack

Bluebook (online)
3 Mont. 251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fredericks-v-davis-mont-1878.