Gottlieb v. Thatcher

151 U.S. 271, 14 S. Ct. 319, 38 L. Ed. 157, 1894 U.S. LEXIS 2054
CourtSupreme Court of the United States
DecidedJanuary 15, 1894
Docket192
StatusPublished
Cited by14 cases

This text of 151 U.S. 271 (Gottlieb v. Thatcher) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gottlieb v. Thatcher, 151 U.S. 271, 14 S. Ct. 319, 38 L. Ed. 157, 1894 U.S. LEXIS 2054 (1894).

Opinion

Mr. Justice Jackson

delivered the opinion of the court.

This suit was brought by the appellant, who was the complainant- below, against the appellee to set aside conveyances made to him by Samuel IT. Thatcher, and the sheriff of Arapahoe County, in the Territory of Colorado, of certain lots and parcels of land, lying and being in that county, and in ■ the eastern division of the city of Denver, on the ground that the lands were conveyed, and caused to be conveyed, to the appellee for the purpose of hindering, delaying, and defrauding the complainant, and other creditors of Samuel H. Thatcher.

The case made by the pleadings and proofs, so far as need be noticed, is this: On May 7, 1874, one Samuel Kaucher recovered a judgment in the District Court of Arapahoe County, Colorado, against Samuel IT. Thatcher for $2710.40.. A certified copy or abstract of this judgment was duly filed for record, and was recorded in the office of the clerk and recorder of the county on June 18, 1874. From this judgment Thatcher prosecuted a writ of error to the Supreme Court of the Territory, and executed a supersedeas bond, with sureties, in the sum of $3500. That judgment was affirmed by the Supreme Court of the Territory. Thereupon Thatcher *273 prosecuted a writ of error to the Supreme Court, of the United States, and, as appears from the record of the case in this court, executed a supersedeas bond with sureties, which suspended the execution of the judgment of the court below. It is shown that the sureties on the supersedeas bond or bonds were protected by securities placed in their hands by Thatcher. The case was heard in this court at the October term, 1877, and on December 17, 1877, the judgment of the Territorial Supreme Court was affirmed, and a mandate issued for the execution of the judgment. On January 29, 1878, execution issued on this judgment against Thatcher, and was levied upon the lands in controversy in the present case, as the property of the defendant, and pursuant to that levy the premises were sold by the sheriff of Arapahoe County, and were purchased by the appellee, Lewis C. Thatcher, for the debt and interest, amounting to about $3850. A certificate of purchase was given to the appellee, and thereafter, on November 25,1878, a sheriff’s deed was made to him for the premises.

Prior to the affirmance of the Kaucher judgment in this court, Samuel H. Thatcher, by warranty deed dated November 13, 1876, conveyed the premises in question to his brother, Lewis C. Thatcher, who was then a resident of the city of St. Louis, Missouri, the consideration for the conveyance being the sum of $1000, for which the grantee executed to the. grantor his two notes for $2000 each, payable two and three years from date of the sale. The deed was duly recorded November 18, 1876, in the register’s office of the county.

On November 18, 1875, the complainant loaned to Zella G-lenmore the sum of $2700 for one year, with interest at the-rate of five per cent per month, payable monthly, for which she executed a.note with. Samuel H. Thatcher as her surety;' This note was secured by a chattel-mortgage on tlie household-furniture of Zella Glenmore, worth from five to six thousand dollars, and by a deed of trust executed by Samuel H. Thatcher on 320 acres of land in Douglas County, Colorado, of the value of about $3000. The interest on this note appears to have been paid, except a portion of the last month of the year during which the note had to.run. At the maturity of the note *274 the complainant seized the furniture covered by the chattel mortgage executed by Zella Glenmore, for default in payment, and caused the same to be sold at auction, realizing therefrom the net proceeds of $1519.43, which were applied upon the note. The complainant on November 30, 1876, also caused the Douglas County lands owned by Thatcher to be advertised and sold under the deed of trust, and the same were bid in by the appellant for $320, and on Deceipber 27, 1877, he received a deed from the trustee conveying to him the lands thus soldi.

On November 25, 1876, the complainant commenced an action in attachment against Thatcher and Zella Glenmore on the note, and on July 23, 1877, he obtained judgment against Thatcher for the sum of $2170. The ground of this attachment was that Samuel H. Thatcher had disposed of his property to defraud his creditors. The attachment was levied upon the same property covered by the conveyance of November 13, 1876, to the appellee,1 and, after recovery of judgment in the attachment proceedings, it was sold under special execution and bid in. by the appellant for the sum of $1800, of which, sum $1694.10 was paid over to or applied on the complainant’s debt.. Thereafter, on July 19, 1878, a sheriff’s deed was duly executed to complainant for the premises thus sold.

The complainant alleges in his bill that at the time .Samuel H. Thatcher conveyed the premises to his brother, Lewis O. Thatcher, he .was insolvent; that said conveyance was made for the purpose of .hindering, delaying, and defrauding his creditors, and that it was without consideration, and therefore void as against the complainant.

lie further alleges that the purchase made of the property in the name-of Lewis C. Thatcher, under the Kaucher execution in January, 1878, was collusive and fraudulent as between Samuel H. and Lewis O. Thatcher;. that the $3850 paid to the. sheriff at that sale, and in satisfaction of the judgment, was the money of Samuel H. Thatcher; and that the conveyance made by the sheriff to Lewis 0. Thatcher was a part of the fraudulent scheme on the part of Samuel II. Thatcher *275 to binder, delay and defraud the complainant in the collection of his debt.

The answer denies all of these allegations of fraud, and states that the purchase of the property by Lewis 0. from his brother was in good faith, without- any knowledge or notice bn the part of the appellee that any fraud was intended ; that the consideration was a fair and reasonable one for the property, and that it was duly paid; and that the notes executed for the purchase money were paid and were taken up by him. The answer also alleges that the defendant furnished the money with which to purchase the property when sold under execution issued in the Kaucher. judgment.

Upon these questions testimony was taken on both sides. Among other proofs introduced the complainant examined the appellee in his own behalf, or as his own witness, touching the transactions and conveyances called in question. In this examination, as a witness for the complainant, the appellee stated that the purchase was made without notice of any fraud on the part of his brother; that the negotiation leading to the purchase was made partly through an attorney, (H. R. Hunt,) and that the notes given for the consideration had been duly paid by him ; that in purchasing the property from his brother it was to be free and clear from all incumbrances, and the deeds contained such warranty; that he knew of the existence of the Kaucher judgment before making the purchase and taking the conveyance; that he was advised that that judgment, if affirmed, would not be a lien upon the property, but it was understood and agreed between his brother and himself that if the judgment should be affirmed, and thereby become a lien on the property, then some provision should be made for his protection against the lien.

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Bluebook (online)
151 U.S. 271, 14 S. Ct. 319, 38 L. Ed. 157, 1894 U.S. LEXIS 2054, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gottlieb-v-thatcher-scotus-1894.