Jackson v. McNabb

39 Ark. 111
CourtSupreme Court of Arkansas
DecidedNovember 15, 1882
StatusPublished
Cited by3 cases

This text of 39 Ark. 111 (Jackson v. McNabb) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson v. McNabb, 39 Ark. 111 (Ark. 1882).

Opinion

Eakin, J.

This is a suit by Jackson, a creditor of tire estate of Morris M. Wright, whose claims have been allowed and classified, to set aside, as fraudulent, a conveyance made by Wright in his lifetime, of all his real estate, and to hold certain purchasers from the fraudulent vendee, with notice, liable for rents and profits during occupancy, and for the value of portions of the lands which had been sold by them to innocent purchasers; and that such proceeds, as well as the lands themselves, remaining unsold, be applied to complainant’s debt, and for general relief. The widow and heirs of Wright, with his administrator, are-made parties, although none appear and answer, save the purchasers, against whom the relief is prayed.

Upon the answers, which but imperfectly deny many of the material allegations, and upon the proof, the cause was heard. The Chancellor found that the original conveyance was fraudulent, and that certain of the defendants who had purchased of the fraudulent vendee, or obtained title from him, to wit, Ratclifie, Crowley, Glasscock and Thomas, had notice of the fraud. Yet the court dismissed the bill upon the ground that the complainant had slept upon his rights until laches could be fairly imputed to him. From this'he appeals.

It is not seriously contended upon either side that the finding of the Chancellor, as to fraud and notice, was erroneous. Without resort to the evidence, enough is disclosed by the pleadings to fix the character of the conveyance as constructively if not actually fraudulent, and to charge the purchasers from the vendee with notice of its character.

They were not, indeed, all immediate purchasers from the vendee. The property was all conveyed by him to Thomas, who, on his part, conveyed to Ratclifie and Crowley, who conveyed a part to Glasscock. Yet the conveyanees were the result of a previous agreement, and the notice attaches to all. We will not question the findings of the Chancellor upon these points, hut proceed at once to the question of laches, upon which the decree turned.

The fraudulent conveyance was made on the thirty-first of March, 1874, when the debts due complainant rested still upon contract alone, and had never been ascertained by any judgment. He could not immediately have proceeded by creditor’s bill or otherwise to have set it aside. In two weeks afterwards Wright was killed. The claim of complainant was duly presented to be allowed in the fourth class, and another of Thorn and brother, which complainant afterwards obtained by assignment, in time to be allowed in the third class. So far this was due diligence, lie might well have hoped, and seems to have had grounds to expect, that he would obtain satisfaction out of the estate without attacking the conveyance, and in such case it would have been his duty to refrain.

Erom the transcript it appears that there came into the hands of the administrator of Wright assets of the nominal value of $9,716.83. All the allowances against the estate did not, in the aggregate, exceed $2,600. Besides, all the real estate in controversy came into the hands of the administrator, and so remained, as apparent assets for the augmentation of the fund, until the month of September, 1875. The fraudulent vendee, McNabb, had left the State, and did not seem, meanwhile, to be setting up any claim; at least was taking no step to do so. Indeed, he never did. lie was sought out, at considerable expense by Thomas, one of the defendants, and his claim was purchased for the benefit of Thomas and his associates in the speculation. Upon his return, Thomas demanded possession, and induced the administrator to yield it.

It is true that the first settlement, as confirmed at the Octoberterm, 1876, revealed the fact that most of the nominal assets, consisting of notes and accounts, had either proved worthless or been absorbed by off-sets. It showed in the administrator’s hands only a balance of $1,229.61. The lands were also gone, and held adversely. It was then fairly enough apparent that complainant’s debt would not, in regular course of administration, be paid in full, and he might properly have begun his suit. Doubtless a very diligent creditor would have done so.

But the lands were permanent, and the holders were making no improvements of any estimable value. There was still a considerable, though inadequate, amount in the hands of the administrator, and it was not unnatural for a creditor, averse to litigation, to await a reasonable time for further developments. The second annual settlement showed an almost total evaporation of the nominal assets, leaving only a trifling amount, compared with the aggregate of debts. This suit was begun within four months after its confirmation.

Neither the claims nor the proceeding in rem to subject the lands were barred by the statute of limitations. The first, after allowance, are never barred, and the second depends on seven years’ adverse holding. Laches can not be measured by any definite time. Generally, but not strictly, courts of equity, in determining it, regard the analogy of the statute of limitations. It depends upon the circumstances of each particular case, such as great changes in the condition of property, probable loss of evidence, or such seeming acquiescence as might bring into play the principle of equitable estoppel. Sometimes these circumstances, accompanied with unreasonable delay, even within the period of limitation, will constitute such laches as to repel an original equity, and cause a court of chancery to refuse relief. But we fail to see, in this case, any such elements, and think the Chancellor, in taking such view of it, was mistaken.

'As the case must be remanded, we deem it useful and proper to indicate the views of this court with regard to the future proceedings.

. Administration: Chancery uris cli c-

The case of Clark, Admr., et al. v. Shelton, 16 Ark.,474, very nearly resembles this, in all respects, save that the bill¡ was filed in behalf of all the creditors and the prayer was for the general relief of all. The court below, however, gave relief out of the uncovered assets to the complainant alone. In a very lucid and able opinion, delivered by Justice "Walker, this was held to be erroneous. Here-marked that “upon the death of the intestate, his estate became at once charged with the payment of all his debts, to be paid under our statute according to class, pro rata.” And he adds further, that “there was no reason why, as between the creditors of the estate, the whole of the assets, as well as those found to he due upon the settlement” (in the Probate Court), “as well as the $1,400” (the amount recovered in chancery), “should not he considered as one fund out of which to pay all the claims.” This certainly is the only proper principle with regard to the estates of deceased persons, with regard to which the Constitution and statutes have established a fixed and certain tribunal for the exhibition of all demands, and within which all demands once exhibited, amount to a prayer for payment out of all assets which are, or may thereafter come, into the hands of the administrator. They become, until released, standing claims to that extent, and all claimants of the same class must concede to each other equality in the distribution of all assets whatever.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Steele v. Kelley
1912 OK 148 (Supreme Court of Oklahoma, 1912)
Planters' Mutual Insurance v. Harris
131 S.W. 949 (Supreme Court of Arkansas, 1910)
Spear Mining Co. v. Shinn
124 S.W. 1045 (Supreme Court of Arkansas, 1910)

Cite This Page — Counsel Stack

Bluebook (online)
39 Ark. 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-mcnabb-ark-1882.