Goshorn's Ex'r v. Snodgrass

17 W. Va. 717, 1881 W. Va. LEXIS 83
CourtWest Virginia Supreme Court
DecidedApril 30, 1881
StatusPublished
Cited by46 cases

This text of 17 W. Va. 717 (Goshorn's Ex'r v. Snodgrass) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goshorn's Ex'r v. Snodgrass, 17 W. Va. 717, 1881 W. Va. LEXIS 83 (W. Va. 1881).

Opinion

HaymoND, Judge,

announced the opinion of the Court:

[762]*762Under the view I take of this case I deem it proper to first consider the question of fraud involved in the sale eonveyanoe from David Snodgrass to James L. Del-aplain. The 2d section of ch. 179, p. 736 of the Code of 1860, which was in force in this State at the commencement of this suit provides, that “a creditor before obtaining a judgment or decree for his claim may institute any suit to avoid a gift, conveyance, assignment or transfer of, or charge upon, the estate of his debtor, which he might institute after obtaining such judgment or decree ; and he may in such suit have all the relief in respect to said estate, which he would be entitled to after obtaining a judgment or decree for the claim, which he may be entitled to recover.” This same provision was carried into the Code of this State of 1868, which took effect on the 1st day of April, 1869. See Code of this State of 1868, § 2, ch. 133, p. 631.

The 1st section of ch. 118 of the Code of 1860, p. 565 provides, that “every gift, conveyance, assignment or transfer of, or charge upon any estate, real or personal, every suit commenced, or decree, judgment or execution suffered or obtained, and every bond or other writing given with interest to delay, hinder or defraud creditors, purchasers or other persons, of or from what they are or may be lawfully entitled to, shall, as to such creditors, purchasers or other persons their representatives or assigns, be void. This section shall not affect the title of a purchaser for valuable consideration, unless it appear, that he had notice of the fraudulent intent of his immediate grantor, or of the fraud rendering void the title of such grantor.” This section is also carried into the Code of this State of 1868. See 1st section of ch. 74, p. 473, Code of 1868.

The 11th section of chapter 118 of the said Code of 1860 provides, that “ the words ‘ creditors and purchasers’ where used in any previous section of this chapter, or in chapter 119, shall not be restricted to the protection of creditors of and purchasers from the grantor, [763]*763but shall extend to and embrace all creditors and purchasers, who, but for the deed or writing, would have had title to the property conveyed, or a right to it to their debts.” This section is also carried into to the Code of this State and constitutes the 9th section of chapter 74 thereof, except that it omits the words “or in chapter 119.”

In 1st vol. Story’s work on Eq. Jur., § 409, p. 437, it is stated, that the doctrine, which has been already stated in regard to the effect of notice, is strictly applicable to every purchaser, whose title comes into his hand affected with such notice. Butin no manner affects any such title, derived from another person, in whose hands it stood free from any such taint. Thus a purchaser with notice may protect himself by purchasing the title of another bona fide purchaser for valuable consideration without notice; for, otherwise, such bona fide purchaser would not enjoy the full benefit of his own unexceptionable title. Indeed, he would be deprived of the marketable value of such a title ; since it would be necessary to have public notoriety given to a prior encumbrance, and no buyer could be found, or none except at a depreciation to the value of the encumbrance. For a similar reason, if a person, who has notice, sells to another, who has no notice, and is a bona fide purchaser for a valuable consideration, the latter may protect his title, although it was affected with equity, arising from notice, in the hands of the person from whom he derived it ; for otherwise, no man would be safe in any purchase, but would be liable to have his own title defeated by secret equities, of which he could have no possible means of making a discovery.”

In section 410 of the same book the author further says: “ This doctrine, in both of its branches has been settled for nearly a century and a half in England; and it arose in a case, in which A. purchased an estate with notice of an encumbrance, and then sold it to B., who had no notice; and B. afterwards sold it to C., who had notice ; and the question was, whether the encumbrance [764]*764bound the estate in the hands of C. The then Master of the Rolls thought, that, although the equity of the encumbrance was gone, while the estate was in the hands of B., yet it was revived upon the sale to C. But the Lord Keeper reversed the decision, and held, that the estate in the hands of C. was discharged of the encumbrance, notwithstanding the notice of A. to C. This doctrine has ever since been adhered to, as an indispensable muniment of title. And it is wholly immaterial of what nature the equity is, whether it is a lien, or an encumbrance or a trust, or any other claim; for a bona fide purchase of an estate, fora valuable consideration, purges away the equity from the estate in the hands of all persons who may derive title under it, with the exception of the original party, whose conscience stands bound by the violation of his trust and meditated fraud. But if the estate becomes revested in him, the original equity will re-attach to it in his hands.”

Syllabus 1. Syllabus 7.

One who purchases from a fraudulent grantee, with notice of the fraud and of the invalidity of bis title, can acquire no better right than the fraudulent grantee. He cannot be protected as a bona fide purchaser, but must stand in the shoes of his grantor. Garland v. Rives, 4 Rand. 282; Robinson’s (old) Practice 17. The statute of frauds avoids all conveyances made by the grantor with intent to delay, hinder or defraud creditors. Those conveyances only are excepted, in which the. purchaser gives a valuable consideration and acts bona fide. The valuable consideration alone will not bring the purchaser within the exception. He must also act bona fide. If a creditor take from his debtor a conveyance to secure a debt, and mix with this object that of delaying, hindering or defrauding other creditors, the conveyance will be void. Garland v. Rives, 4 Rand. 282; Wright v. Hancock & Co., 3 Munf. 521; Lang v. Lee, &c., 3 Rand. 410.

The statute for the prevention of frauds, which has been universally considered as an exposition of the com[765]*765mon law, was intended to avoid deeds contrived and devised fraudulently for the delaying and defrauding of creditors in those cases only, where both parties participated in the fraud. The grantor may intend a fraud, but if the grantee is a fair, bona fide and innocent purchaser, his title is not to be affected by the fraud of his grantor. Spencer, Jndge, in Sands v. Hildreth, 14 Johns. 498; Kent, Chancellor, in Roberts v. Anderson, 3 Johns. Chy. 378; Bean v. Smith et al., 2 Mason 252; Rob. (old) Prac. 17.

Syllatas 2.

In the case of Kaine v. Weigley, 22 Pa. St. (10 Harris) 179, the first branch of the syllabus is: “ The proposition, that ‘fraud must be proven and not presumed,’ is to be understood only as affirming, that a contract honest and lawful on its face must be treated as such, until it is' shown to be otherwise by evidence either positive or circumstantial. Fraud may be inferred from facts calculated to establish it.” It seems to me that this syllabus announces a correct principle.

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Bluebook (online)
17 W. Va. 717, 1881 W. Va. LEXIS 83, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goshorns-exr-v-snodgrass-wva-1881.