Gordon v. McIlwain

82 Ala. 247
CourtSupreme Court of Alabama
DecidedDecember 15, 1886
StatusPublished
Cited by16 cases

This text of 82 Ala. 247 (Gordon v. McIlwain) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon v. McIlwain, 82 Ala. 247 (Ala. 1886).

Opinion

STONE, C. J.

— This is a suit in equity by a judgment creditor, and seeks to subject real estate to the payment of the judgment, on the alleged ground that the debtor transferred his property to delay, hinder, and defraud his creditors. The bill charges that, on January 19, 1885, appellant, as plaintiff, recovered a judgment against Samuel P. McIIwain, on which execution had been issued, and returned no property found; that six days before that time, viz., January 13, 1885, the said Samuel P. McIIwain conveyed his real estate by warranty deed to John H. McIIwain, his brother, on a recited consideration of six thousand dollars; that in fact this consideration was simulated, and no valuable consideration was given for the conveyance ;■ that by this conveyance the said Samuel P. was left without property subject to his debts, and was practically insolvent; that no change of the possession of the land took place, and Samuel P. remained in the enjoyment of the same ; and that this conveyance was made with intent to hinder, to defraud, [249]*249and to prevent the said Gordon from collecting his said claim.

There was an amendment of the bill, which averred that, immediately or soon after acquiring the title by said conveyance, John H. Mcllwain, the grantee, on a consideration simply good, but not valuable, conveyed the land to the wife and children of the said Samuel P. The question is, as to the bona fides of the conveyance to John H. Mcllwain.

The only evidence this record supplies of a debt from Samuel P. Mcllwain is the record of judgment recovered by complainant against him, six days after the conveyance of the land by the latter to his brother, John H. To maintain the complainant’s suit, under such circumstances, it is not enough that the conveyance was voluntary, and without consideration. It must appear that the conveyance was made with intent to defraud, either the complainant or some one else. — Lawson v. Ala. Warehouse Co., 73 Ala. 289.

The transaction in this case was between brothers; and the next day, after receiving the conveyance, the purchasing brother made a voluntary reconveyance of the entire property back to the wife and children of his vendor. The consideration was an ' alleged indebtedness from the latter to the former. No present consideration is claimed to have been paid. Only John H., the purchaser, was examined as a witness to prove the extent and nature of the consideration, while the grantor, Samuel P.,' who must have had equal knowledge, was not examined. John H. testified that, when he puichased the land, he knew the suit was pending against Samuel P., which culminated in the judgment this suit seeks to collect. Fear of losing the claim, or a desire to realize the amount due, could not have induced the purchase, for John H. did not retain one cént of the product of the tranaction. He required his brother to impoverish himself, by surrendering his entire estate, that he might, without consideration, reconvey it to the wife and children of the brother he had thus impoverished. Tet he testifies that, when he received the conveyance, neither his brother nor any member of his family was informed of his intention to reconvey.

Let us, however, further scan the testimony of this only witness who attempts to prove the consideration of this conveyance to him. Each of the brothers had a wife and children, and tbe occupation of each was that of farming. This witness gives no account of any income the purchaser had realized, except the patrimony which came alike to himself and his brother .Samuel P. in 1880, and the profits of the farming operations. The division of the property , was [250]*250into three equal shares, and amounted to about seven thousand dollars to Samuel P., and, we suppose, the same amount to each of the others. Whether this division was in property, or in money, or partly in property and partly in money, the record does not inform us, farther than that the lands in cqntroversy came to Samuel P. from his father’s estate. Part of the consideration, according to this witness, ivas paid by him, “ by receipting S. P. Mcllwain, or releasing him of and for a debt of sixteen hundred dollars and upwards which he owed me. This debt was due me on the difference in valuation of the lands belonging to our father’s estate. On a division he owed me the amount, and in paying him for the land mentioned in said deed, he agreed to take and did take said debt as cash, and as a part of said consideration, or deed-money. I mean by paying him the cash of four or five thousand dollars above set forth, that I had let him have money at sundry times before that, amounting, on the day said deed was delivered, to the said sum in cash. I am unable to give the exact dates and several amounts advanced and paid the said S. P. Mcllwain, item by item, without having the drafts given for the money in my hands, and I have not said drafts with me. But I can give some of the amounts which go to. make up said sum, to-wit: One thousand dollars in 1869 ; eight to nine hundred dollars in 1876, and eight hundred and eighty-three dollars from fall of 1881 to spring of 1882.” The foregoing is, in substance, all the witness testifies as to special items constituting the consideration, as remembered by him. This witness testifies further, that he, the witness, received his- discharge as a bankrupt in 1868. This was the second year of the operation of the bankrupt law of 1867. He testifies as follows : “ My best recollection is, that I got my discharge in bankruptcy in the month of May, 1868 ; and when this occurred, I had paid every debt I owed in the world except two, paying out over three thousand dollars, the day before making application therefor, on my debts.” This witness testifies-as .to his income from his planting operations for the eight years preceding and including 1884, as follows : “ In the year 1877, I made about fifteen hundred dollars profit on my farming business. In 1878 and 1«79 — the two years — I cleared about seven thousand dollars. In 1880 I came out about even. In 18811 lost about two thousand dollars. In 1882 I made clear about- one thousand dollars. In 1888 I made clear about eighteen hundred dollars; and in 1884 I came out about even.”

In weighing this testimony, certain reflections force them[251]*251selves upon us. In'1868, Jobn H., the witness, received his discharge as a bankrupt, paying immediately before that time three thousand dollars bn his debts. Yet, according to his statement, in a little -more than a year afterwards, he lent his brother one thousand dollars ; and he is not shown to have madq any effort to collect the debt, until it was used as a part of the consideration of the land purchased, in January, 1885.

In 1880, the father of the'McIlwains died, and his estate descended to his children. 'A division was had, and Samuel P., although indebted to John H., ten years past due, was allowed to receive sixteen hundred dollars more than his share, for which he became debtor to John H. No effort is shown to have been made at that time to collect the loan of one thousand dollars, made ten years before.

It is testified that, in 188Ij John EL'lost about two thousand dollars in farming. Yet, in the winter following, he made a further loan to Samuel P. of eight hundred and eighty-three dollars, notwithstanding the latter had only the year before come into possession of his patrimony of about seven thousand dollars.

It will be observed that, in giving account of the wholly past consideration on which.

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Bluebook (online)
82 Ala. 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-mcilwain-ala-1886.