Harden v. Wagner

22 W. Va. 356, 1883 W. Va. LEXIS 66
CourtWest Virginia Supreme Court
DecidedNovember 3, 1883
StatusPublished
Cited by35 cases

This text of 22 W. Va. 356 (Harden v. Wagner) 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
Harden v. Wagner, 22 W. Va. 356, 1883 W. Va. LEXIS 66 (W. Va. 1883).

Opinion

Snyder, Judge:

The. appellants insist that the order of January 21, 1882, continuing 'their motion to dissolve the injunction was erroneous. This was error. The answers filed by the defendants on that' day fully, plainly, distinctly and positively denied the allegations of the bill, and there was no proof offered, other than the affidavit to the bill, to support the material allegations on which the injunction was founded. Under such circumstances it has been repeatedly held by this Court that the motion 'to dissolve should not have been continued unless from some very great necessity; because the court is always open to grant and, of-course, to re-instate an injunction whenever it shall appear proper to do so; also because the plaintiff should always be ready to prove his bill— Pithole P. Co. v. Rittenhouse, 12 W. Va. 313; Horn v. Perry, 11 Id. 694; Hayzlett v. McMillan, Id. 464.

The motion to dissolve in this case was made after notice [362]*362and an opportunity had been given to the plaintiffs to show •by affidavits or otherwise the truth of the allegations of their bill, or at least the necessity • for a continuance to procure such' testimony, and that they -knew or had good reason to believe they could obtain proof of the material averments of their bill. But this they wholly failed to d,o or excuse themselves for not doing, therefore under the decisions cited the motion to dissolve should have been sustained, and it was error not to do so. • ' ' : '

It.is next insisted that the vacation order of March 1, 1882, overruling-the defendants’motion' to dissolve the injunction and sustaining the plaintiffs’ motion and appointing a receiver, was also erroneous. When this order was entered'all the proofs, now appearing in-the cause in support of the bill and answers, had been then taken and filed and the cause was-heard upon said proofs and 'the answers-of the defendants consequently, the propriety of said order can not be sustained, unless the subsequent decree of May 3, 1882, setting aside ♦the trust-deed was justified by the pleadings and proofs in the cause. If it was error to enter said decree a fortiori, it was error to make said order. This brings us to the main question in the cause: Hid' the court err in said decree of May 3, 1882 ? The solution of this enquiry depends upon the further enquiry : Was the said trust-deed of June 16, 1881, made with'intent to 'delay, hinder and defraud the creditors of C. E. 'Wagner, and, therefore, void as to the plaintiffs and other creditors ?

In'support of said decree the appellees, the plaintiffs below, claim, 'first, that said trust-deed taken alone, or in connection with the writing of July 13, 1881, is fraudulent on its lace, and, second, that it is fraudulent in fact.

T. Is said deed fraudulent on its face? The only part of the deed attacked in this connection, is that which requires a -demand by the cestuis que trust before the trustee can sell the property or, as is claimed, collect the claims and accounts mentioned in it. It is insisted that, as the note secured was payable one day after date, the provision that a sale should be made only on demand- of the beneficiaries shows an intent to shield the property rather than secure a debt. . This view is more critical than it is sound, ■ This provision as to the [363]*363property conveyed is simply a statement of what the statute would have required of the trustee had it been omitted from the deed. “The trustee * * shall' * * whenever required by any creditor secured, * * after the debt * ■* shall have become payable * * sell the property conveyed.” Oh. 72 § 6 Code, p. 743. And as to the claims and. demands transferred to the trustee by the deed, it would be a very narrow, if not an unreasonable, inference from the context that the trustee was to sell them on demand by the beneficiaries, and not collect them as is usually done in-such cases. In the conclusion of the same sentence which provides for the sale of the property, the deed directs the trustee to collect the accounts, claims and demands due to said grantor and apply the same according to law.” In dra ving the de:ed, it is more reasonable to conclude that these claims'' and accounts were inadvertently classed with the chattels than to infer that it was intended they should remain uncollected until a sale should be demanded and then sold as chattels. Cochran v. Paris, 11 Gratt. 348. But, however this maybe, it is certain that it was not intended the grantor should col-. lect them, because they were by the deed, eo instante, transferred to the trustee and lie alone thereafter could collect and give quittances upon their payment. And, moreover, any obscurity, which may have existed in the terms of the deed, was entirely removed by the writing of July 13, 1881, which expressly made it the duty of the trustee to collect and apply them to the payment of the trust-debt. But it is said that this writing makes it the duty of the trustee to collect not only the claims and accounts contracted before the execution of the deed, but also those “which might thereafter, in the' conduct of the business, became due,” and, consequently, it is thereby shown that it was intended “not only that the-grantor shall remain in possession, and control of the property but that he shall prosecute the business.” This it seems to me is a clear non sequitur. The deed conveyed all the property to the trustee without any reservation of control or interest in favor of the grantor. Under the terms of the deed he had no more right to the possession or use' of the property than any stranger who never saw it. The possession and use as well as the title was transferred to and completely vested in [364]*364the trustee. It, therefore, necessarily follows that, if it was contemplated that the business should be thereafter conducted, it must have been intended that it should be done by, or under the supervision of, the trustee, the only person who had the right or authority to do it. And such was really the intention as shown not only by the said writing but by the proof in the cause. And that it was provided the business should be carried on under the supervision of the trustee, by agents employed by him, until the property could be disposed of in an advantageous manner is rather an evidence of good faith than of a fraudulent intent or purpose. Gordon v. Cannon, 18 Gratt. 387; Sipe v. Earman, 26 Id. 563; Marks v. Mill, 15 Gratt. 400.

The cases of Garden v. Bodwing, 9 W. Va. 121, and Gardner v. Johnston, Id. 412, relied ou by the appellees, belong to that class of conveyances which reserve benefits to the grantor, or introduce limitations and contingencies, giving such uses to him and control over the property or its proceeds as are inconsistent with the security for the debt or object of the trust, being equivalent to a power of revocation, and are, therefore, adequate to the defeat of the security. Lang v. Lee, 3 Rand. 410; Sheppards v. Turpin, 3 Gratt. 373; Spence v. Bagwell, 6 Id. 444; Addington v. Etheridge, 12 Id. 436; Perry v. Bank, 27 Id. 756; Kuhn v. Mack, 4 W. Va. 194.

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Bluebook (online)
22 W. Va. 356, 1883 W. Va. LEXIS 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harden-v-wagner-wva-1883.