Gill ex rel. Rankin v. Henry

95 Pa. 388, 1880 Pa. LEXIS 334
CourtSupreme Court of Pennsylvania
DecidedOctober 25, 1880
StatusPublished
Cited by6 cases

This text of 95 Pa. 388 (Gill ex rel. Rankin v. Henry) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gill ex rel. Rankin v. Henry, 95 Pa. 388, 1880 Pa. LEXIS 334 (Pa. 1880).

Opinion

Mr. Justice Green

delivered the opinion of the court,

This was a judgment bond given by the defendant Henry to the legal plaintiff, Gill, for the payment of $8000, dated April 28th 1875. It was accompanied by a mortgage of same date and amount, which was recorded April 30th 1875. On June 1st .1875, Gill assigned the bond and mortgage to the plaintiff, Isaac Rankin, and handed him at the same- time a certificate of no defence signed by Henry. The assignment was made in consideration of $5795, which Gill owed Rankin on May 1st 1875, for moneys which Rankin' had at various times left with Gill for investment. As between Gill and Rankin, therefore, a good consideration passed for the transfer of these securities. On January 26th 1876, Gill, without the knowledge of Rankin, entered satisfaction of the mortgage, and in the fall of 1877 he fled the country in consequence of discreditable transactions in which he was engaged. When Rankin discovered that Gill had satisfied the mortgage of record he entered judgment on the bond in suit on December 10th 1877. Subsequently, on the application of the defendant, the judgment was opened, and the case was tried before a jury who rendered a verdict for the defendant under instructions from the court, which are now brought before us for review by various assignments of error.

The actual defence set up was that the bond was given without any consideration. The reason why it was given appears in the testimony of the defendant himself. He said on the trial, “ I got into trouble with the bank, the Allegheny Trust Company. I came over to Mr. Gill. They were talking of suing, or had. They were commencing to sue, and I didn’t want to have any trouble incurred, and I came over to Mr. Gill and asked him what I should do, and he said he could fix it for me, and I asked him howr. He said that he could draw up a bond and mortgage, and it could lay in his office, which would keep me out of court; I would have no trouble. I told him I didn’t want to avoid payment of the assessments as they became due. I did not want to be sued. I was afraid of being sued by creditors. When I came to him I knew I was liable for all the debts of that concern. It was with that view I made that mortgage; he said it would keep the property safe for me — keep the property safely covered up.” This language is so extremely plain that there is no difficulty in understanding it. It proves beyond all question that the bond and mortgage in question were given for the express purpose of hindering, delaying and defrauding the creditors of Alexander Henry, the defendant. No amount of refinement or speculation can clothe ■it with any other meaning. The plain, blunt truth of the case is, [391]*391that a defendant in a judgment makes defence against it on the express ground that it was given without consideration for the purpose of defrauding his creditors. That such a defence would be absolutely worthless, even against the plaintiff himself, thepartioeps criminis, has been so many times decided by this and other courts, that it would be a waste of time to cite the authorities. Neither the very able counsel for the defendant, nor the learned judge of the court below, pretends to dispute the doctrine. Yet this defence was permitted to prevail in this case against an innocent third person, who received these securities in consideration of a large sum of money, $5795, which was due him previous to, and at the time of, the assignment from Gill, who was the holder of them. It is not pretended that Rankin had any' knowledge whatever of the original transaction. In point of fact he was entirely ignorant of it. How did it happen that the defence was successful ? On the trial a very ingenious theory was set up, that it was agreed between Henry and Gill, at the time the bond and mortgage were given, that they should remain in Gill’s office. It was inferred from this that they -were not to be entered of record, and that, therefore, it was a fraud on Gill’s part to record the mortgage, and for either him, or any one claiming title under him, to enter up the judgment. It was argued that this was an independent feature of the transaction which would prevent Gill from claiming -under either security, and as it would be a good defence against him, so it would be also against any assignee of his who failed to make special inquiry of the defendant as to whether he had any defence against the instruments. The familiar doctrine was invoked that the assignee of a bond takes it subject to all defences of the obligor against the obligee. This theory received the sanction of the court below, and the case was left to the jury with the instruction that, if they believed there was such an agreement between Gill and Henry, it would be a fraud upon Henry by Gill to enter- up the securities and attempt to collect them, which the law would not permit; and that as Rankin had merely taken an assignment of the bond and mortgage in consideration of a previous indebtedness, he could not be regarded as an innocent purchaser for value, and in that event, their verdict must be for the defendant. Upon what testimony this question of fact was left to the jury we do not certainly know. The evidence has not been printed and is not before us. But as Gill was a fugitive from justice and was not examined, and as the transaction occurred between Gill and Henry alone, and as only testimony delivered by Henry himself is quoted in support of the ruling of the learned judge, we infer there was no other testimony in the case than his upon which the jury could have acted. We have considered it all, and in our opinion it is entirely insufficient to sustain the verdict, and should not have been left to the jury as competent for the purpose for which it was sub[392]*392mitted. The proposition of fact is that there was an agreement between Henry and Gill that the bond and mortgage were not to be entered of record or collected. We do not find a particle of testimony to that effect. In what we have heretofore quoted there is but a single expression that affords the basis of an argument to that effect, and that was this, “ He s.aid he could draw up a bond and mortgage and it could lay in Ms office, which would keep me out of court. I would have no trouble.” But this proves nothing more than that Gill said the papers could lie in his office. It does not prove an agreement even to that effect, nor that their remaining in Gill’s office was any essential part of the transaction. But even if it did, such an agreement is very far short of an engagement not to enter them of record. Without being so entered they were of no more value for the purpose for which they were given than so many pieces of blank paper. It will not do to say that Henry may have supposed or believed that they would have accomplished his purpose if kept secret. There is no evidence that he "was so utterly stupid as that. What he wanted was publicity not privacy, as to these papers. He wanted to keep his creditors at bay by having his property appear to be heavily- encumbered. But to deposit and keep the papers for such encumbrance in the safe of an attorney would prevent, and not in any manner promote, such appearance. The only other testimony quoted in the printed, argument of counsel for the defendant in support of his position, is the following :

Q. “Mr. Henry, I wish you would state what, if anything, occurred — what, if anything, was said between Mr. Gill and yourself, as to where this bond and mortgage was to be kept and for whom?”

A. “It was to be kept in Ms office. He said he would leave it in the safe. It was to be kept in the office.”

Q. By the court: “ For whom ?”

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Bluebook (online)
95 Pa. 388, 1880 Pa. LEXIS 334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gill-ex-rel-rankin-v-henry-pa-1880.