Governor v. Campbell

17 Ala. 566
CourtSupreme Court of Alabama
DecidedJanuary 15, 1850
StatusPublished
Cited by34 cases

This text of 17 Ala. 566 (Governor v. Campbell) 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
Governor v. Campbell, 17 Ala. 566 (Ala. 1850).

Opinion

DARGAN, C. J.

That the law presumes the assent of ■creditors to a deed of assignment executed by an insolvent debtor, when the conveyance is beneficial to them, is now so well established by the decisions.of this court, that the question is not open to controversy. — Robinson v. Rapelye, 2 Stew. 86; Wiswall v. Ross et al. 4 Porter, 321; Gazzam v. Pointz, 4 Ala. 374; Kennard v. Thompson, 12 Ala. 487. In the case of Smith v. Leavitt, 10 ib. 92, the deed, out of which the controversy in this case grows, was before this court, and it was held not to be fraudulent on its face, and the provisions such, that the assent of the prefered creditors would be presumed. This decision fully shows that there is no error in the first and second instructions given to the jury.

2. The third charge is equally free from error. It merely affirms that the execution of the deed, its registration, and the proof of the debts intended to be secured by it, raised the presumption that the deed was not fraudulent in fact, until that presumption was overcome by evidence. This charge amounts •to nothing more than that the deed was not fraudulent on its face, and that it required evidence, dehors the deed, to show it to bg fraudulent; for it is manifest that if proof of the execution of the deed and of the debts purporting to be secured by it, would not raise the legal presumption that the deed was valid, when it appeared that it was recorded in proper time, then the deed must be fraudulent on its face, for in substance it shows nothing more.

3. The fourth charge is in the following language : “ That if the defendants had proved the execution of the deed and that the debts secured thereby were bona fide and the deed recorded in the proper time, then Campbell and his securities were not affected by any secret trust intended by the parties to the deed for the benefit of J. M. Friou, unless they were satisfied from the evidence that Campbell knew of the fraudulent intent.” [570]*570It is the duty of a sheriff to use due diligence- in the execution of process, whether final or mesne. If be does this, he discharges his duty and cannot be held liable, although he has-failed to execute the writ. Thus, if a defendant in execution be not in the. possession of any property, and the sheriff has no, knowledge that he has any, nor by ordinary diligence can ascertain that he has, and none is pointed out or shown to him as the* property of the defendant, if he returns the writ, no property, .under such circumstances, he could not be liable although ifc might afterwards appear that the defendant had property liable io.be sold under the writ. To hold the rule tobe otherwise-would be to hold the sheriff liable at all events, if the defendant-had property,, although the sheriff could not ascertain the fact or find the property. But if the defendant was in the possession, of properly, the presumption of law then is, that he is the owner of it, and that it is liable for his debts; and if a sheriff under such circumstances returns the execution, no property, he assumes-the burthen of proving that the property in the possession. of the defendant and which he could have levied on, is not liable to, the execution. In the case of Minter v. Bigelow & Co. 9 Port. 481, it was said, “ when a sheriff returns an execution, .no property to be found out of which the execution can be satisfied, it is incumbent on. the plaintiff, if he would gainsay the return, to show that it is presumptively false. This may be-done by showing that the defendant is in possession of property, andi if he is not the owner of it, or if it be not liable to the execution, it will devolve on the. sheriff to show by proof that such was its condition. He will,, however, be ’ relieved frorfi this burthen, where the title to the property was doubtful, if he has used the precaution while the execution was in his hands, to require a bond of indemnity of the, plaintiff, who has. declined to. comply with the requisition. In the case of Smith v. Leavitt,. 10 Ala. 92, Judge Ormond, speaking of this same deed, said,. “ that it was such a conveyance as may be a justification to the sheriff in refusing to make a levy, or in restoring the properly after a levy had been made. To be a justification for him, it must be a valid transfer of the property, and in justifying under it he assumes the b.urden of proving the deed is bona fide and effectual in law fertile purpose for which'it was made;” These decisions affirm the rule, that if a defendant in execution is in [571]*571the possession of property and the sheriff assumes the responsibility of returning it, no property, without doing any thing more, he is bound when proceeded against for not making the money, to show that the property is not liable to the execution, and if he fails to do that, he must be held liable. It is therefore clear that in determining the liability of a sheriff for failing to make the money on an execution, whether the defendant was in possession of the property or not, becomes an important inquiry. If it be shown that the defendant was in possession of none, the sheriff is not liable, unless it can be shown that he, was the' owner of property on which a levy could be made and of which' the sheriff had notice, but if it be shown that the defendant was in the possession of property which could have been levied on by the sheriff, and without taking any further step to protect himself from liability, he returns the writ, no property, be is bound to show that the property is not liable to the execution. Applying these rules to the instructions given, we think the court erred. The charge assumes, or at least conveys the idea, that the rules of law in ascertaining the liability of the sheriff are the same, although the deed was fraudulent, whether J. M. Friou or his grantees were in possession. This, we have seen, is not the law. The testimony furnished us by the record, to say the least of it, was conflicting as to whether J. M. Friou or the trustees named in the deed had the possession of the property. It was therefore a material question to determine who had the possession in fact. The charge of the court rendered this inquiry unnecessary by applying the same rule of law in ascertaining the liability of the sheriff, whether J. M. Friou or his grantees were in possession.

4. The fifth charge was that if J. M. Friou intended to delay, hinder and defraud his creditors, but the trustees and the prefered creditors did not join in that intent, the deed was valid. If the question raised by this charge could be considered as an open one in this court, I should willingly hold that the court erred, for the fraudulent intent of the grantor must render the deed void as against creditors intended to be defrauded by it, unless the grantee can place himself on a ground, or in a condition not to be affected by the fraud, and I know of no condition that such a grantee can assume to avoid the effect of the fraudulent intent of the grantor, unless it be.that of a bona JiJe pur[572]*572chaser for a valuable consideration without notice. Bui we are satisfied that (he previous decisions of this court settle the question, that the fraudulent intent of the grantor alone in a'deed of trust cannot affect the rights of 'the creditors intended to be secured by it, unless they have participated in that intent. In the case of Storer v. Herrington, 7 Ala. 142, the question arose whether the fraudulent intent of a mortgagor affected the rights of the mortgagee who did not participate in that intent.

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Bluebook (online)
17 Ala. 566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/governor-v-campbell-ala-1850.