Guggenheimer v. Lockridge

19 S.E. 874, 39 W. Va. 457, 1894 W. Va. LEXIS 70
CourtWest Virginia Supreme Court
DecidedJune 11, 1894
StatusPublished
Cited by15 cases

This text of 19 S.E. 874 (Guggenheimer v. Lockridge) 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
Guggenheimer v. Lockridge, 19 S.E. 874, 39 W. Va. 457, 1894 W. Va. LEXIS 70 (W. Va. 1894).

Opinion

Brannon, President :

This suit in chancery was in the Circuit Court of Poca[459]*459hontas county by Guggenheimer & Co. against Loekridge aud others. IJpon demurrer the suit was dismissed; and Guggenheimer & Co. appeal. The question at the threshold of the case is: Has equity jurisdiction of the suit upon the case as made by the bill ? The original bill sets up a joint and several debt by notes in favor of Guggen-heimer & Co. against H. M. Loekridge and J B. Loekridge and seeks to avoid as fraudulent conveyances of land one made by J. B Loekridge to Ernest ÍL Moore for oue tract of land, and one from H. M. Loekridge to J. B. Loekridge for another tract. The plaintiffs are only general creditors of the two Lockridgesby note and had no lien,but claim the right, as such general creditors, before obtaining judgment at law to sue in chancery to avoid fraudulent conveyances by authority of section 2, c. 133, of the Code, authorizing a creditor before obtaining judgment to institute any suit to avoid a fraudulent transfer of or charge upon the estate of his debtor, which he could institute after judgment.

Before the enactment of that statute such general creditor having no lien could not go into equity to enforce his debt by assailing a fraudulent conveyance. Kelso v. Blackburn, 3 Leigh, 299; Bump, Fraud. Conv. 521; Guano Co. v. Heatherly, 38 W. Va. 415 (18 S. E. Rep. 611). But under said statute he can do so and, if successful in overthrowing the fraudulent conveyance, he has a lien from the commencement of his suit. Clark v. Figgins, 31 W. Va. 156 (5 S. E. Rep. 643); Sweeney v. Refining Co., 30 W. Va. 443 (4 S. E. Rep. 431); Norris v. Lemen, 28 W. Va. 336; Wallace v. Treakle, 27 Gratt. 479. But do the statements of the bill bring the case under the statute ? Indeed, do they not show that equity jurisdiction can not be sustained under it ? Take the case made by the bill, as it relates to the tract of land conveyed by J. B. Loekridge to Ernest hf. Moore. While the bill states that Loekridge • executed a deed for it to Moore with fraudulent intent, yet it distinctly states that in executing the deed it was impossible that Loekridge could have communicated with Moore ; that Moore did not seek to buy thqjand at any price and did not pay eight thousand dollars cash or any sum, but that Loekridge made the deed to Moore without consulting him, and Moore [460]*460knew nothing of it, until after the deed had been executed and recorded at the instance of the grantor, and that on learning of it he repudiated the deed and denied any interest under it; that Lockridge and Moore met, and both agreed and admitted such facts to be true and agreed that the land should be re-conveyed by Moore to Lockridge; and that Moore had executed a deed conveying the land back to Lockridge, but Lockridge failed to put it on record with intent to hinder and defraud creditors. An amended bill states the execution of this deed re-conveying the tract from Moore to Lockridge and exhibits it; and it appears to have been made prior to the institution of this suit.

It appears from the showing of the plaintiffs that while Lockridge, so far as his mere act could do so, had made a fraudulent trausfer to Moore, the land had re vested in the debtor, Lockridge, by re-conveyance. That fact does away with any call for equity, which entertains a 'suit to avoid fraudulent conveyances only because the fraudulent conveyance has removed the estate out of the reach of ordinary remedial process against the debtor by divesting him of it, so that a judgment at law against the debtor would not operate as a lien, and vesting it in auother; and it is to brush away such conveyance and restore the land to the debtor, so far as the creditor is concerned, that equity assumes jurisdiction. Where the parties have repented, and done themselves the act of re-conveyance, where is the call for equity intervention ? It is again within the reach of the usual remedial procedure, as though the fraudulent conveyance had never had existence.

There is a second reason for denying equity jurisdiction. The bill states that Moore did not assent to or ratify the deed but repudiated it on learning of it. Lid an estate in the land vest in Moore ? If it did not, where is the reason for equity jurisdiction, the estate remaining in the grantor ? Is acceptance by a grantee of the deed a part and parcel of the act of delivery ? On all hands we find agreement, that delivery of a deed is an indispensable element in its execution. Is acceptance by the grantee strictly a part of the act of delivery? Some so consider it, on the principle that [461]*461there can be no-completed delivery without the participation of the grantee — a hand to receive as well as one to give; and, if this he not so, then the elementary writers in giving the essential parts of a deed are defective in .omitting to give acceptance a distinct and separate elemental place in the definition of a deed; for on all sides it is granted that acceptance by the grantee is necessary. 2 Minor, Inst. 656; opinion in Skipwith v. Cunningham, 8 Leigh 282; Younge v. Guilbeau, 3 Wall. 636; 5 Am. & Eng. Ency. Law 446; 5 Wait, Act. & Def. 3814.

On authority we may properly say, that acceptance is not a part of delivery, but that delivery makes the deed good against the grantor vesting the estate in the grantee ; but such delivery may be avoided by the disclaimer or disavowal of the deed by the grantee, and thereupon the delivery is avoided, and the estate revests in the grantor by remitter. Thompson v. Leach, 2 Vent. 198; 4 Kent, Comm. 455, note c.; Skipwith v. Cunningham, 8 Leigh 272, 282; 2 Lomax, Dig. 26, 287; 2 Minor, Inst. 656; 2 Bl. Comm. 309.

While acceptance is necessary, it need not be expressed, as it may be implied, and it will be implied from many circumstances. We must not understand that acceptance of a deed is to be expressly or affirmatively shown. The establishment of such a rule would shake innumerable titles. The language of the books is, that acceptance of a deed is necessary to its operation. Perhaps it would be better to say, that dissent by the grantee must be shown; for it is not stating the law too broadly to say, that in all conveyances beneficial to the grantee the assent of the grantee is presumed, until his dissent be shown, and this because it is for his benefit, and it is not likely one will disclaim a benefit; and also it is unreasonable, that, when a grantor has made a deed, the estate should still remain in him, and also it is to prevent uncertainty as to where the freehold is. Skipwith v. Cunningham, 8 Leigh 272, 281, 285; Guano Co. v. Heatherly, 38 W. Va. 410, point 8 (18 S. E. Rep. 611); 2 Greenl. Ev. 297; 2 Bl. Comm. 309; Halluck v. Bush, 1 Am. Dec. 60; Peavey v. Tilton, 45 Am. Dec. 365; Lady Superior v. McNamara, 49 Am. Dec. 184; 5 Wait, Act. & Def. [462]*4623814. As to delivery of deed, see Lang v. Smith, 37 W. Va. 725 (17 S. E. Rep. 213); Newlin v. Beard, 6 W. Va. 110.

The dissent and disclaimer of the deed by Moore avoided the deed, so that, when this suit was brought to avoid that deed, it had been already avoided. There was no title in Moore, but it liad re-vested in Lockridge, and judgment at law against Lockridge would have been a lien upon it..

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Bluebook (online)
19 S.E. 874, 39 W. Va. 457, 1894 W. Va. LEXIS 70, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guggenheimer-v-lockridge-wva-1894.