Frisk v. Reigelman

44 N.W. 766, 75 Wis. 499, 1890 Wisc. LEXIS 2
CourtWisconsin Supreme Court
DecidedJanuary 28, 1890
StatusPublished
Cited by19 cases

This text of 44 N.W. 766 (Frisk v. Reigelman) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frisk v. Reigelman, 44 N.W. 766, 75 Wis. 499, 1890 Wisc. LEXIS 2 (Wis. 1890).

Opinion

The following opinion was filed December 3,' 1889:

LyoN, J.

I. Numerous questions of practice are presented by this appeal and were argued by counsel. These will be considered hereafter. It is convenient, first, to consider the case-on the merits.

The gravamen of the garnishee action is that Reigelmam, the garnishee, purchased a stock of goods of Bessinger, the principal defendant, with the intent on the part of both of them to hinder, déla}»', and defraud the creditors of Bessin-ger. The personal property mentioned in the findings of the court is part and parcel of such stock of goods. As is [503]*503usual in cases of this character, the testimony on most of the material questions involved is conflicting and irreconcilable. After a careful examination thereof, we are of the opinion that the court might properly have found therefrom the following specific facts:

In the year 188?, Bessinger was engaged in mercantile business at 'Washburn. As late as the 1st of December he had a stock of goods in his store worth between $3,000 and $4,000. Soon thereafter he removed a portion of his stock, of the value of about $1,200, to Hayward, and a portion to Ashland. He sold at Hayward, about $300 worth of the goods taken there, and sent the remainder to Eau Claire, directed and consigned to Reigelman. He then went to Eau Claire, and negotiated a sale of the portions of his stock both there' and at Ashland to Reigelman for $1,000. The latter made the purchase without opening the packages containing the goods at Eau Claire, or making any examination of them, and without having seen the goods at Ashland or any invoice of them, and without making any inquiries, except of Bessinger, as to the quantity and value of the goods. He admitted to one of the witnesses that the goods seized on the attachments were a bankrupt stock which he had purchased at Ashland; that the stock was .worth $3,000, and he had purchased it at twenty cent.s on the dollar of its value. Upon inquiry being made of him, he disclaimed knowledge of the- whereabouts of Bessinger, but said he had heard he was in San Erancisco. After such purchase, Reigelman furnished Bessinger transportation to St. Paul, and has not seen him since.

Reigelman placed the goods in a room adjoining his saloon, and commenced selling them at one third of less of their actual value. The only testimony of the consideration paid for the goods by Reigelman was given by himself, and is to the effect that he loaned Bessinger $500 in March, 188?, taking no note or other voucher therefor. He gave [504]*504bim tbe money, or most of it, in currency. In July be sent a note for tbe amount to Bessinger, to be executed by him, payable in four months, that is, on November 25, 1887, without interest. It is quite apparent that Bessinger was an entire stranger to him.- before 1886, and bis personal intercourse with him after that time was casual and infrequent. He testifies to purchasing large quantities of cigars of Bessinger in 1887, and paying bim therefor, except 1,000, which he received as interest on the $500. ITis testimony as to his dealings with Bessinger is so vague and confused that it is quite insufficient to show any close business or personal relations between them. He further testifies that when he bought the goods he surrendered to Bes-singer the $500 note, and indorsed to him a certificate of deposit for $500, dated two days before, in payment thereof. The certificate so indorsed was produced in court.

Without going further into detail, it is sufficient to say that the transactions between Reigelman and Bessinger were so unusual — so out of the ordinary course of business— that, taken in connection with his admission that the stock which he purchased was a bankrupt stock and was so purchased at a ruinous sacrifice, the learned circuit judge was abundantly justified in finding the sale was in fraud of the creditors of Bessinger, to the knowledge of Reigelmam., and that the goods thus purchased by the latter remained, as to such creditors, the property of Bessinger, and that. Reigelman was liable to them for the value thereof. The testimony also fully supports the finding that the stock thus fraudulently purchased by Reigelman was worth at least $1,200.

The fact that the certificate of deposit was indorsed to Bessinger is not very significant. In most cases of fraudulent sales we find evidence of the formal payment of a consideration, and often the payment is made with considerable publicity and ostentation. Of course, the payment of [505]*505a consideration by the purchaser is a fact to be considered in determining the question of fraud, but it is by no means a controlling one. If it were, but few fraudulent sales could be successfully impeached, for they would be so made that the purchaser could easily prove that he paid for the property.

Many exceptions were taken on the trial to the rulings of the court admitting or rejecting testimony. It is no sufficient ground for reversing the judgment, where the case is tried without a jury, that incompetent testimony has been admitted. In such case, the appellate court will' give no weight to such testimony in the determination of the appeal, but will not reverse the judgment because it was admitted. "We are satisfied that, had all of the testimony rejected by the court been received, it could not have changed the result. Hence the rulings in that behalf are immaterial.

"We conclude that the testimony supports the findings and judgment.

II. We are now to determine certain alleged errors and irregularities of practice in the proceedings preliminary to the judgment in the principal action, which, it is claimed, invalidate the garnishee proceeding and judgment. Before doing so, however, it should be observed that a valid judgment in the principal action against the defendant, Bessiuger, is essential to the validity of the judgment against the garnishee, and the latter may be heard to assert the invalidity of the principal judgment. Streissguth v. Reigelman, ante, p. 212 (decided herewith), and cases there cited.

Further, the summons not having been personally served on Bessinger, it is essential to the validity of the judgment against him that there was a valid order for publication of the summons, and due publication thereof, and that no such order could- be x’egularly made until a verified complaint in the action had been filed.

[506]*506We proceed to the consideration of the alleged errors and irregularities above mentioned.

1. The principal action was commenced in the name of “ Frisk, Turner & Co.,” and all the papers therein, and in the garnishee action down to the trial of the latter action, were thus entitled-. Before judgment .in the garnishee action, the court made an order amending the proceedings by-inserting, in place of the firm name, the names of the partners therein, as plaintiffs. Bringing the action in the firm name does not render the judgment void, but is a mere defect or irregularity, which is waived unless due objection be made thereto before judgment. Bennett v. Child, 19 Wis. 362. No. such objection was here interposed. The amendment was properly allowed.

2. The affidavit upon which the writ of attachment issued in'the principal action must depend for its validity, is substantially the same as that in Streissguth v. Reigelman, ante, p. 212.

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Bluebook (online)
44 N.W. 766, 75 Wis. 499, 1890 Wisc. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frisk-v-reigelman-wis-1890.