Johnson v. Rutherford

147 N.W. 390, 28 N.D. 87
CourtNorth Dakota Supreme Court
DecidedApril 16, 1914
StatusPublished
Cited by18 cases

This text of 147 N.W. 390 (Johnson v. Rutherford) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Rutherford, 147 N.W. 390, 28 N.D. 87 (N.D. 1914).

Opinions

Goss, J.

This action in equity is brought to have property owned by John Eutherford, now deceased, and by him transferred to bis wife, Mary Eutherford, declared subject to an alleged debt of decedent. Tbe administrator was appointed to collect said claim, approved by tbe county judge as a valid demand for $789.50. At bis death Eutherford left no estate. On trial this action was dismissed as to the real estate, but tbe personal property was held subject to disposition by the probate court to tbe amount of tbe claim. Tbe widow attempted to prove that said claim bad been fully paid, and offered in evidence canceled checks and receipts for about $900, asserted to have been paid thereon. This proof was excluded, and tbe approval of tbe claim by tbe county judge was held to be res judicata of its validity in this action, and that tbe matter of payment was one within tbe sole cognizance of tbe probate court, except as it might reach tbe district court by appeal from probate court. Tbe trial court found that all tbe property was both transferred and received with no actual intent to defraud, binder, or delay collection of debts. From this finding tbe administrator appeals, demanding trial de novo of tbe entire case. Tbe trial court further found that tbe note was an unpaid, outstanding, valid claim against tbe estate of tbe decedent; that tbe transfers by deed and bill of sale were made without consideration and with full knowledge of tbe impending and approaching death of Eutherford; that tbe real estate so transferred consists of a section of land and of $3,000 of personal property; that tbe personal property in excess of exemptions to tbe widow should be subject to tbe debt of Harvey, in so far as it “may be [95]*95shown to be a just and equitable claim against said estate;” and that the transfer of personal property thus made was a gift causa mortis, which, rinder § 5000, Eev. Codes 1905, must be treated as a legacy so far as the creditors of the deceased are concerned. From these findings the widow appeals on separate specifications of fact, as to which only a review is demanded.

The administrator has moved to dismiss the appeal of Mary Euthei*ford on the ground that the specifications of fact are insufficient to confer jurisdiction of her appeal, and cites Douglas v. Richards, 10 N. D. 366, 87 N. W. 600; Salemonson v. Thompson, 13 N. D. 182, at page 189, 101 N. W. 320; and Stevens v. Meyers, 14 N. D. 398, 104 N. W. 529, in support of the motion. Specifying merely ultimate conclusions of law to be reviewed is insufficient to warrant any retrial, but the defendant has specified both conclusions of fact and evidentiary facts in relation to particular findings, with parts of the complaint upon which the same are based, with sufficient particularity as to facts desired reviewed to authorize a retrial thereof. The motion is denied. Nothing can be gained by treating the appeals separately, as all matters are before the court on one appeal or the other, and the cause will be tried de novo. The complaint is sufficient to charge that the decedent transferred his property, and that the same was received with the intent of both transferrer and transferee to hinder, delay, and defraud the decedent’s creditors in the collection of their debts. Paragraph 3, in the words of § 8173, Rev. Codes 1905, pleads a transfer and reception of property with such intent and without consideration.

There is no dispute in the facts. The husband died one day after the transfers to the wife. These transfers were made as a mere business precaution to avoid administration of the estate, and it does not appear that the debt, the basis of these proceedings, was considered at all. But the claim having been approved by the county judge, it must be taken as prima facie valid and existing, and that upon such hypothesis its payment will be avoided if these transfers are valid and the estate be not subject to its payment; and that ever since said transfers were made there has been no estate with which to pay claims. The act of insolvency was the delivery of the transfers.

The complaint avers a fraudulent conveyance of real and personal property. It is framed under § 8173, Eev. Codes 1905, covering any [96]*96fraudulent conveyance of real or personal property, and authorizing the personal representative to pursue and apply property so transferred by decedent for the benefit of creditors of his estate. The widow claims and the court found the transfers in question were not in fact fraudulent. But the court applied § 5000, Kev. Codes 1905, reading: “A gift in view of death must be treated as a legacy so far as relates only to the creditors 'of the giver,” and thereunder adjudged the personalty subject to probate administration for payment of debts. Both §§ 8173 and 5000, Kev. Codes 1905, are found in the early Codes of California, some years prior to their appearance here, and in neither state has any amendment or change been made since 1872. Wisconsin has the same statute (Andrew v. Hinderman, 71 Wis. 148), 36 N. W. 624, as have most of the states, the statute being but a declaration of the common law on fraudulent conveyances. The law in California, under this statute § 8173, may be considered settled as to every question presented. The defendant contends that, in the absence of specific proof of fraudulent intent on the part of the decedent, the action must be dismissed; that fraud is a matter of fact, to be established by proof, like any other fact, and that there is an utter failure of proof thereon. Such was the conclusion of the trial court in finding the fact to be that the conveyances were not fraudulent. On the same evidence the contrary would be the holding of the California courts. Shiels v. Nathan, 12 Cal. App. 604, 108 Pac. 34. Bernard Shiels, the decedent, before his death transferred his personal and real estate to his brother Michael, from whom Bernard’s wife, Mary Shiels, sought to recover a claim allowed by the probate court. “It is urged that there was no evidence of actual fraudulent intent in conveying the property to Michael. . . . The complaint avers that Mary Shiels was a creditor of Bernard at and before the date of the transfer, and that ‘he, without any valuable or adequate consideration therefor,’ conveyed to Michael the land and the money on deposit, and thenceforward to the date of his death ‘he had no property out of which said debt could be paid, and he thereby rendered himself insolvent,’ and so continued until he died. . . . It was, however, necessary to show further that the conveyance was with fraudulent intent. It was held in Emmons v. Barton, 109 Cal. 662, 42 Pac. 303, that where the consideration was love and affection alone, it was not sufficient unless made with intent to defraud the [97]*97creditors; that the intent is a question of fact, and that a voluntary conveyance is not prima facie fraudulent, and fraudulent intent is not to be arrived at as a presumption of law. It was further held in that case, 'Pronounced insolvency at the time of the grant would no doubt be a strong circumstance tending to show fraudulent intent; and in the absence of other controlling -facts it would be sufficient to justify a finding of such intent.’

“It appeared from the evidence that Bernard was mortally ill and in the hospital when he made the conveyance, and died five days thereafter ; that he declared that it was his intention to convey all the property he possessed, and so far as known he did so; that his brother Michael served for a time as executor of Bernard’s estate, .and could find no property belonging to him, and for that reason asked to be and was discharged.

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Bluebook (online)
147 N.W. 390, 28 N.D. 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-rutherford-nd-1914.