Johnston-Crews Co. v. Folk

111 S.E. 15, 118 S.C. 470, 1922 S.C. LEXIS 35
CourtSupreme Court of South Carolina
DecidedFebruary 27, 1922
Docket10841
StatusPublished
Cited by42 cases

This text of 111 S.E. 15 (Johnston-Crews Co. v. Folk) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnston-Crews Co. v. Folk, 111 S.E. 15, 118 S.C. 470, 1922 S.C. LEXIS 35 (S.C. 1922).

Opinions

February 27, 1922. The opinion of the Court was delivered by A creditor's bill, seeking to have the Court declare invalid, so far as their claims are concerned, a certain deed executed by the debtor to a young woman (afterwards his wife), not recorded within the statutory period, and to subject the interest of the debtor to the payment of said claims.

The following facts appeared: In the year 1912, J.G. Folk, the debtor, was a farmer near Brunson, S.C. He testified that the grantee of the deed, Miss Richie B. Chovin, had been a member of his family since she was 8 years old; that he lost his wife in 1912, and the young woman, who was then about 18 years old and in school in Charleston, was induced to return to his home and assume the *Page 476 cares of his household, upon his promise to convey to her his one-third interest in a tract of land which belonged to his deceased wife, containing about 1,000 acres and valued at $10 to $30 per acre; that she did return, and on December 24, 1912, he executed and delivered the deed in compliance with his agreement; that he married the young woman in 1914. This deed though executed in 1912, was not put upon record January 20, 1914. In the meantime, in August, 1913, Folk embarked in the mercantile business, and during the year of 1913 contracted debts to wholesale merchants and others to the aggregate amount of about $2,500. Early in the year 1917 these claims were put in judgment, and nulla bona returns were entered upon the executions. At some time prior to February 13, 1918, exactly when does not appear in the record, an action was instituted by Meinhard Bro., creditors of J.G. Folk — a creditor's bill, against him and his wife — for the purpose of having said deed declared fraudulent and void, under the Statute of Elizabeth. This action was terminated in favor of the defendants by the following decree of Judge Spain:

"The above-entitled case came up before me upon exceptions to the report of the Special Referee herein, and, after hearing argument, I find that there was not sufficient testimony to warrant me in setting aside the deed in question for fraud; the complaint stating but one cause of action for fraud. The complaint was not drawn to set aside the deed under the recording Act."

This decree was dated February 13, 1918. On February 20, 1918, a week thereafter, the plaintiff, Johnston-Crews Company, instituted this action for the purpose above stated.

The defendants insist that, the plaintiff having come into the Meinhard suit as a creditor, the decree in that case is res adjudicata, so far as the present cause of action is *Page 477 concerned. Judge Devore in a decree, which will be reported, held against the contention of the defendants, and granted full relief as prayed for by the plaintiff. The debtor died after the present suit was instituted, and it has been continued against his heirs at law and administratrix, who have appealed from the decree of Judge Devore. The decree of the Circuit Judge was right, and should be sustained.

The adjudication sought by the plaintiff to be established in the action at bar is that in 1912 J.G. Folk executed a valid deed conveying his interest in the land to Miss Richie B. Chovin (afterwards his wife); that this deed was not recorded until 1914; that in the meantime Folk contracted debts, being apparently the owner of the land; that while Folk's title fully passed by the deed to his grantee, the latter holds the title subject to the claims of subsequent creditors.

The adjudication sought by the plaintiffs to be established in the former action was that in 1912 J.G. Folk executed an invalid deed, attempting to convey his interest in the land to Miss Richie B. Chovin; that this deed was executed with the intent to hinder, delay, and defraud his creditors, and was void; that the title of Folk never passed out of him; and that the land as the property of Folk was subject to the claims of his creditors. This adjudication was denied to the plaintiffs; the Court on the contrary holding that the conveyance was not fraudulent, but was a valid transfer of Folk's title to his grantee, reserving expressly the question raised by the plaintiff in the action at bar.

Tested by the principles of the doctrine of res adjudicata, we do not see how it is possible to decide that the second action, involving a diametrically opposite theory, is concluded by the adjudication established in the former action. The first action viciously attacks and denies the validity of the deed; the second concedes *Page 478 its validity, as between grantor and grantee, and seeks to enforce the rights of subsequent creditors against the holder of the legal title under that deed, a matter which was not and could not have been involved in the former action.

The following have been declared to be the essential elements of res adjudicata: (1) Identity of the parties; (2) identity of the subject-matter; (3) an adjudication in the former suit of the precise question sought to be raised in the second suit. Hart v. Bates, 17 S.C. 35

It may be assumed that the identity of the parties has been established. The former action, that of Meinhard Bro., was a creditor's bill, in which Johnston-Crews Company intervened and participated by proof of their claim. The action at bar is a creditor's bill instituted by Johnston-Crews Company.

2. As to the identity of the subject-matter, or as variously expressed the claims, demands, or causes of action: The causes of action in the two suits are essentially different. Entirely different allegations are made, requiring as different evidence. In the one, the validity of the deed is attacked as fraudulent and void; in the other it is conceded to be valid. In the one, the plaintiff could have succeeded only by proving that the deed was executed with the intention on the part of both grantor and grantee, of hindering, delaying, and defrauding the creditors of the grantor. In the other the plaintiff can succeed by conceding what was in issue in the former suit, the validity of the deed, and by proving that the plaintiff was a bona fide creditor of the grantor, induced to extend credit to him upon the faith of his ownership of the land, the title to which apparently was in him, unaffected by the deed previously executed, but not recorded until after the debts were contracted.

The point cannot be better illustrated than by the case ofWhaley v. Stevens, 21 S.C. 221. In that case the plaintiff brought an action against the defendant for obstructing his *Page 479 right of way, and obtained a verdict. Upon appeal (24 S.C. 479) this Court held that, the plaintiff having alleged in his complaint that he was entitled to a right of way in gross, and not a right of way appendant or appurtenant to his land, and there being confessedly no evidence that the plaintiff was entitled to a right of way in gross, he could not recover, even though he may have proved that he was entitled to a right of way appendant or appurtenant to his land described in the complaint; and that, as there were essential and marked distinctions between the two kinds of rights, the violation of these rights present different and distinct causes of action, which would have to be asserted and established by different and distinct allegations and proofs, the plaintiff's application for leave to amend could not be granted under the provisions of the Code. Judgment was therefore rendered, dismissing the complaint.

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Bluebook (online)
111 S.E. 15, 118 S.C. 470, 1922 S.C. LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnston-crews-co-v-folk-sc-1922.