Halfpenny v. Tate

64 S.E. 28, 65 W. Va. 296, 1909 W. Va. LEXIS 43
CourtWest Virginia Supreme Court
DecidedMarch 9, 1909
StatusPublished
Cited by6 cases

This text of 64 S.E. 28 (Halfpenny v. Tate) 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
Halfpenny v. Tate, 64 S.E. 28, 65 W. Va. 296, 1909 W. Va. LEXIS 43 (W. Va. 1909).

Opinion

Miller, President:

The object of the bill is to set aside as fraudulent and void, as against plaintiffs, the sale by Tate & McDevitt to G-. H. Gates & Co., and by Gates & Co; to 33. II. Stover, of about nine hun-[297]*297drecl and fifty thousand feet of manufactured lumber, and to subject the same to the lien of plaintiffs attachment sued out in the cause, and levied thereon, and taken into custody by the sheriff. The lumber attached •was the same which, by prior contract in writing, dated November 26, 1906, Tate & McDevitt, had agreed to sell and deliver to plaintiffs, free on board cars at Kingsville, W. Ya., a small station on the Coal & Coke Railroad, in Barbour county, but which, after delivering a small portion thereof, and pending the further execution of the contract, by contract in writing, on October 11, 1907, they undertook to sell and deliver, for the purported consideration of thirteen thousand dollars, cash in hand, to G. H: Gates & Co., and which lumber said Gates & Co., acting through G. IT. Gates, on or about October 17, 1907, by a parol contract, pretended to sell to said Stover, at the price' of seventeen thousand dollars, to be paid for as delivered by them on cars. At the time of the sale to Gates & Co., about three hundred thousand feet of this lumber had been already delivered at the railroad by Tate & McDevitt, to be loaded on cars for plaintiff; and at the time of the sale by Gates & Co. to Stover, about sixty thousand feet more had been delivered there, and the residue either remained at the mills, or on stump in the woods to be manufactured.

The plaintiffs claim is for $3,581.29, the balance, with interest, of $5,000.00, advanced by them to Tate & McDevitt, on account of said lumber, less $1,561.12, in lumber delivered on account. In addition plaintiffs claim $5,000.00 damages for breach of contract, but the attachment does not cover the damages claimed, and no serious effort seems to have been made to prove actual damages. Tate & McDevitt in their answers also make a counter claim for damages, on the theory of a breach of the contract on the part of plaintiffs to furnish ears and inspectors. But the contract does not stipulate that plaintiffs were to furnish either cars or inspectors. Besides, Tate, in his testimony admits having received orders from plaintiffs, and excused himself to plaintiffs for failure to make shipments, on the ground that he could not get cars. There seems to have been some trouble to 'get cars, but this was due to no fault of plaintiffs. No serious effort was made by Tate & McDevitt to show damages.

While the answer of Tate & McDevitt deny intention to defraud plaintiffs, they do not deny the material facts charged in [298]*298the bill, as constituting the fraud, and in their evidence they admit facts not only constituting fraudulent intent but actual fraud on their part, in the disposition of said lumber and other property. We will not undertake to detail the evidence on this point. It conclusively establishes the fraud charged on their part, and we do not hesitate for a moment to pronounce judgment of conviction against them.

But the answers of G. H. Gates? & Co." and of.IC. II. Stover put in issue the question of the bona fides of the purchases of the lumber by them. . Both claim to be innocent purchasers for value, without notice of- the fraud of Tate & McDevitt. On the hearing the circuit court dismissed plaintiffs bill as to them holding the lumber attached, not liable to plaintiffs attachment, but referred the cause to a commissioner to state the condition of the account between plaintiffs and Tate & McDevitt, and decreeing that the Peoples National Bank, garnishee, should pay to plaintiff the sum of $21.02, admitted to be due from them to Tate & McDevitt, and from this decree plaintiffs have appealed.

•The specific allegations of the- bill are not as broad as they might be to cover the case made by the evidence. It does charge that the object and purpose of Tate & McDevitt in making the subsequent sales thereof was to avoid delivery of the lumber to plaintiffs, and to avoid repaying plaintiffs thé balance of the advances made by them on said lumber, and that Gates & Co., and Stover had notice thereof. This charge taken in connection with other allegations we think equivalent to a charge of intent to wholly defraud plaintiffs; but as the answers deny this, it would have been better pleading to have charged also that the sales were made for the purpose of hindering and delaying plaintiffs in the collection of their debt; for the terms defraud, hinder and delay are not equivalent terms, and to hinder or delay are as much condemned by the statute, section 3099, Code 1906, as to wholly defraud a creditor. Edgell v. Smith, 50 W. Va. 349, 355, 356. And as the Court says in the case just cited, quoting, at page 356: “But in order to render a deed fraudulent, it is not necessary that the'debtor should intend to entirely defeat the creditor in the collection of his claim. Creditors are entitled not only to be paid, but to be paid as their claims accrue, and a debtor has no more right to postpone payment- simply for his own advantage, than to defeat it altogether. A purpose to delay [299]*299and hinder a creditor is therefore fraudulent, although the debtor may honestly intend that all his debts shall ultimately he paid. * * * * The words ‘hinder/ ‘delay/ and ‘defraud’ are not synonymous.” The allegations of the bill, taken as a whole, however, we regard equivalent to charging in the terms of the statute intent not only to wholly defraud, but also to hinder and delay plaintiffs.

On the subject of proof not only the evidence of plaintiffs, but that of defendants, also, abundantly establishes intent not only to wholly defraud plaintiffs, but also to hinder and delay them. Both Tate and McDevitt are and were non-residents. Their non-residence was the basis of plaintiffs attachment. Mc-Devitt had been temporarily in West Virginia, superintending their lumbering operations. " Tate was rarely here, although he appears to have come to West Virginia to negotiate the sales to Gates & Co., if not to Stover. Tate was also the principal witness for defendants. In attempting to assign a reason for selling to Gates & Co., he professes to have been afraid Halfpenny would go hack on him, because, as he claimed, he had gone hack on him in the purchase of a tract of timber land for Tate & McDevitt, and on which he had advanced $4,185.00 of purchase money, and taken title to himself as security. Plaintiffs were to have had the lumber manufactured from this land, but Tate & McDevitt having found a purchaser for the lumber at the price of ten to twelve thousand dollars, which would yield them a large profit, applied to Plalfpenny for permission to sell, which Halfpenny agreed to, on condition that he should he paid a bonus for the use of his money, and as compensation for the loss of prospective profits on the lumber which his firm was to haye had from the land.

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Cite This Page — Counsel Stack

Bluebook (online)
64 S.E. 28, 65 W. Va. 296, 1909 W. Va. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halfpenny-v-tate-wva-1909.