Harrison v. Campbell

36 Ky. 263, 6 Dana 263, 1838 Ky. LEXIS 38
CourtCourt of Appeals of Kentucky
DecidedApril 16, 1838
StatusPublished
Cited by2 cases

This text of 36 Ky. 263 (Harrison v. Campbell) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harrison v. Campbell, 36 Ky. 263, 6 Dana 263, 1838 Ky. LEXIS 38 (Ky. Ct. App. 1838).

Opinion

Judge Marshall

delivered the Opinion of the Court.

These bills were filed separately by Campbell and Horine, creditors of Charles M. Davenport, deceased, to subject the same property to the payment of their respective demands, on the ground that it had been fraudulently conveyed by Davenport, in his lifetime, and is still subject to the payment of his debts. The two causes were heard upon the same depositions in the Circuit Court, and were argued together in this Court; and as they [264]*264present substantially the same questions, they will be considered and disposed of together, in this opinion— noticing, when it. may be necessary, such differences as exist between them.

The bills allege that Davenport died indebted to the complainants in certain sums evidenced by writing; that after his death, suits at law were brought against G. W. Elly, his administrator, and Jane Davenport, his only heir, who is an infant; that the heir having pleaded ‘nothing by descent,’ and they knowing no evidence to disprove the plea, judgment was obtained against the administrator alone, on which executions had issued and been returned, in effect, “nulla bona.” The complainants then allege that Davenport, before his death, had, without valuable consideration, nnd for the fraudulent purpose of hindering and delaying themselves and other creditors, executed a mortgage conveying to his mother-in-law, Jane Harrison, for the security of an alleged loan of three thousand dollars, certain property, real and personal, which is stated in one of the bills to be all that he had which was subject to execution, oí which could have descended to his heir, and after putting appropriate interrogatories, they pray that the property thus fraudulently conveyed, may be subjected to the satisfaction of the debts set up in the bills.

The administrator and heir of Davenport, and Jane Harrison, the mortgagee, together with the widow of Davenport and her second husband, William Morton, are made defendants; and the bill of Campbell prays that, if the widow be entitled to dower, it may be assigned to her before the sale of the real estate contained in the mortgage.

The defendants, except the administrator, deny the fraud. The heir relies on the judgments in her favor, in the actions at law, the records of which are exhibited by the complainants. Mrs. Harrison, the mortgagee, insists upon the fairness and validity of the mortgage, and Morton and wife pray that their interest in right of the latter to dower, may be protected. The Circuit Court, being of opinion that the mortgage was fraudulent, and having first assigned dower to Davenport’s [265]*265widow, according to the report of a commissioner appointed to lay it off, proceeded to decree, in each case, the sale of the mortgaged property, or so much as might be necessary for the satisfaction of the demands set up in the bill — ordering the personalty to be sold first, and then a slave included in the mortgage, and then the land, exclusive of the dower, and finally, if necessary, the reversionary interest in the part assigned for dower.

A mortgage executed by one to his mother-in-law to secure the payment of 3000 dols., held creditor” because: (i) the greatly embarrassed’ by debts, some of which were in executions; (2) chided every artide ofhispropexJcudon;”^ 3*) ^ tinTbasis^S loan of a few in law, to mortgage his and thus procreditors He had made a pre moth front law, on the same consideration, & had endorsed on it the words “no fraud ” (5) The mortgagee knew the embarrassed condition of the mortgagor, and that the deed covered all his property at about its full value, and probably also, that there had been a prior mortgage, and the reason for executing the second one; 16) the inference that she knew the fraudulent intent of the mortgagor, authorized by the circumstances, and by his declarations, in her presence, was fortified by the failure’of proof of a greater amount loaned than §500; (7) it was attempted to make out the balance of the consideration stated in the mortgage, under the allegation that the mortgagee had, at various times, in years past, advanced to the mortgagor small sums of money, but what these amounted to was not shown; no obligation was taken for their repayment, and it did not even appear probable that there was an expectation of repayment.

From each of these decrees the defendants have appealed ; and now contend that the decrees should be reversed on several grounds, of which the first is: — That , , . the alleged fraud is not sufficiently proved; and that there should, therefore, have been no decree for the sale i , either of the personal or real estate conveyed by the mortgage. But the evidence sufficiently establishes— (f) that Davenport was greatly embarrassed by impending debts, some of which were in the form of judgments and executions; (2) that the mortgage included every article of property which he possessed, and which was subject to execution; (3) that he had for some time before the execution of the mortgage, entertained the design of procuring the loan of $>300 or $>400, from Mrs. Harrison, and of mortgaging to her for its security all his property, at its full value, for the purpose of protecting it from his creditors, until he could pay his debts by the proceeds of his practice as a physician; (4) that upon a previous mortgage executed between the same parties, and on the same consideration, Davenport had endorsed the words “no fraud,” which .was the cause of the execution of the present one; (6) the mortgagee knew the embarrassed condition of Davenport; she knew that the mortgage covered all his property, at [266]*266about its real, value, and she may be presumed to have known, that this was a second mortgage, and the reason of its being executed. (6) From these circumstances, connected with and corroborating the testimony of a witness who states that the mortgagor avowed, in the presence of the mortgagee, before the date of the mortgage, his intention, on the basis of a loan from her of three hundred dollars, to secure his property from his creditors, by mortgaging it at its value, it may be inferred, with reasonable certainty, that, she knew of his fraudulent design. This inference is strengthened by her failure to prove a loan, or loans, corresponding, in amount, with the sum secured by the mortgage. The proof may be deemed sufficient to establish the loan of from three to five hundred dollars, at some period not long prior'to the mortgage; but as to the rest, although it is stated by the widow of Davenport, that her mother had alt various periods, in the course of ten or twelve years, made numerous -small advances to him by way of loan, even she does not venture the opinion that these advances approximated the sum of three thousand dollars — and it is very apparent from the answer of the mortgagee herself, that whatever those, small sums may have amounted to, she had made no account or charge of them at the time, .and had taken no note for their repayment, and that in stating her belief that they amounted to three thousand dollars, she referred to and relied upon the statement of Davenport, and his acknowledgment in the mortgage, that that sum had been loaned.— And looking to the relation subsisting between the parties, to the certainty of. a fraudulent design on the part of Davenport, and the strong probability that she was not ignorant of it, it cannot be admitted that a deed executed, under so many suspicious circumstances, can be supported either by his acknowledgment, or by any mere conjecture which we might make as to the sum due.

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Cite This Page — Counsel Stack

Bluebook (online)
36 Ky. 263, 6 Dana 263, 1838 Ky. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrison-v-campbell-kyctapp-1838.