Huffman v. Nikon

53 S.W. 1078, 152 Mo. 303
CourtSupreme Court of Missouri
DecidedNovember 14, 1899
StatusPublished
Cited by4 cases

This text of 53 S.W. 1078 (Huffman v. Nikon) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huffman v. Nikon, 53 S.W. 1078, 152 Mo. 303 (Mo. 1899).

Opinion

ROBINSON, J.

This is a suit in equity begun in tbe Morgan Circuit Court in April, 1892, to set aside a fraudulent deed of trust on certain land in Morgan county, executed by J. B. Kelsey to Obarles D. Nixon in trust to secure tbe payment of a promissory note of $3,000 payable to Obarles T. Kelsey, and praying that plaintiff’s title be adjudged paramount to that conveyed by tbe deed of trust.

Tbe cause was tried at tbe June term, 1896, of the Saline [309]*309Circuit Court, where it had been taken on change of venue, and resulted in a dismissal of plaintiff’s bill, to reverse which plaintiff has brought the case to this court by appeal.

The amended petition, upon which the case was tried, alleges, in substance, that plaintiff purchased the land embraced in the deed of trust in question at a sale under several executions issued upon judgments in favor of O. H. Knoop and another against J. B. Kelsey, made by the sheriff of Morgan county, Missouri, during the October term, 1883, of the Morgan Circuit Court; that said judgments were rendered in attachment proceedings against the property of J. B. Kelsey begun August 23, 1882; that personal service was made in each of the attachment suits upon said J. B. Kelsey, and said real estate levied upon by the sheriff under the several writs of attachment; that plaintiff’s purchase of the land in controversy vested in him all the right, title and interest J. B. Kelsey had therein on August 23, 1882; that said J. B. Kelsey pretended to make a deed of trust thereon to secure a pretended indebtedness of $3,000 to his brother Charles T. Kelsey of Tompkins county, New York, dated July 22, 1882, but that it was not delivered to said Charles T. Kelsey until after the seizure of said land upon wilts of attachment in the several suite; that the deed of trust was filed for record in the recorder’s office of Morgan county by J. B. Kelsey before any of the attachment writs were levied; that after it was recorded it was re-delivered to J. B. Kelsey and by him controlled until September 1, 1892, when he delivered it to his brother, Charles T. Kelsey, in New York; that the levies of the several write of attachment became liens upon the said land prior to the delivery of the deed of trust to Nixon and Charles T. Kelsey; that the deed of trust was executed without any consideration whatever, that Charles T. Kelsey is the brother of J. B. Kelsey and Nixon , is a cousin of both J. B. and Charles T. Kelsey, with whom he sustained confidential relations; that the note and deed of trust were fraudulent transactions as [310]*310against, the creditors of J. B. Kelsey, and part of a scheme to defraud the creditors of the latter, who, it is alleged, at the date thereof, was largely indebted and in failing circumstances, and that the making of said deed of trust was in furtherance of such scheme; that as the deed of trust was recorded prior in point of time to tire levy of the several writs of attachment it cast a cloud upon the plaintiff’s title, and was apparently a prior lien; that plaintiff’s title was in right and equity of prior date to the deed of trust. The prayer of the petition is that the deed of trust be canceled, set aside and for naught held; and that the same be decreed to have been executed in fraud of the creditors of J. B. Kelsey; and that plaintiff’s title be decreed prior and superior to airy right or interest conveyed by the deed of trust; and for general relief.

• The defendants answered jointly, denying generally the allegations of the petition, and set up and interposed the ten years’ statute of limitations as a defense to the ground of action that the deed of trust was not delivered until after the alleged attachment liens accrued, and pleaded the answer of plaintiff filed in the Morgan Circuit Court in the case of C. H. Knoop vs. C. F. Nixon, J. B. Kelsey, Charles T. Kelsey and himself, wherein he then averred and claimed that the land purchased by him was subject to the encumbrance of the deed of trust now in controversy and that he was then ready and ■willing to pay the same to whom the court should direct, and averred that the plaintiff purchased the land in controversy subject to the deed of trust the validity of which is assailed by plaintiff in this case; that plaintiff purchased only 'the equity of redemption of I. B. Kelsey in said land; that from the notice of sale and the oral proclamation made by the sheriff thereat the latter sold only the equity of redemption, and that the plaintiff had consequently purchased only that interest, and for more than ten years had claimed no greater interest. The answer further averred that the election of Knoop to sell and of plaintiff to purchase the equity of re[311]*311demption only, and the failure of plaintiff to make any other claim prior to the filing of this amended petition herein, on August 7, 1894, effectually barred the plaintiff from the relief sought.

The reply denied 'the new matter contained.in defendant’s answer.

Plaintiff contends that the note and deed of trust in question were fraudulent transactions against the creditors of J. B. Kelsey, and consequently, as purchaser of the mortgaged premises at sheriff’s sale, is entitled to have the same set aside and removed as a cloud cast upon his title, and the defendant perpetually enjoined from proceeding thereon. In this connection counsel for plaintiff strenuously urges that in point of fact the deed of trust was not delivered until after the abstract of attachment had been filed by the sheriff with the recorder in at least one of the several attachment suits theretofore commenced against J. B. Kelsey, so that the levy of the writ of attachment and the sheriff’s deed on execution sale thereunder were prior in point of time and constituted a prior lien. Defendants, on the other hand, maintain that the deed of trust was not only made in good faith, but actually delivered to the beneficiary before the attachment liens accrued; and, further, that even though the deed of trust was made in fraud of creditors, the plaintiff bought only the equity of redemption of J. B. Kelsey in the land in controversy, and therefore is in no position to assail the deed of trust on the ground of fraúd.

The record discloses that in July, 1882, J. B. Kelsey was a banker at Versailles, in this State, deeply involved, with creditors pressing their claims for payment, and, indeed, might fairly be said to be insolvent and in failing circumstances. On July 22d a deed of trust was prepared and signed by J. B. Kelsey, and forwarded to his wife, then in the State of Maryland, for her signature, acknowledgment and return; she acknowledged the deed of trust on August 14th, and returned the same to J. B. Kelsey, who filed the same for [312]*312record in tire recorder’s office of Morgan county on the 21st day of August at 11:30 a. m.

The deed of trust, it is conceded, purports to have been given to secure the payment of a note of $3,000 in favor of his brother Charles T. Kelsey, who 'resided- in the State of New York, with interest thereon at the rate of seven per cent per annum. After the deed of trust in question had been recorded, J. P. Kelsey obtained the same from the recorder and sent it by mail, together with the note and abstract of title, to Nixon, at Oswego, New York, and the latter thereupon took it to the home of Charles T. Kelsey and says that he received the amount of the loan in checks and drafts. No part of tire proceeds of this transaction, however, was ever turned over to J. B. Eelsey. Nixon held the checks and drafts received by him from Charles T.

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Bluebook (online)
53 S.W. 1078, 152 Mo. 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huffman-v-nikon-mo-1899.