Jones v. Cullen

42 S.W. 873, 100 Tenn. 1
CourtTennessee Supreme Court
DecidedNovember 6, 1897
StatusPublished
Cited by3 cases

This text of 42 S.W. 873 (Jones v. Cullen) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Cullen, 42 S.W. 873, 100 Tenn. 1 (Tenn. 1897).

Opinion

Wilkes, J.

These are creditors’ bills, filed October 28, 29, and 31, 1896, attacking a number of conveyances, made by Cullen & Newman to their various co-defendants, as fraudulent in law and fact. The property was attached and placed in the hands of a receiver. The conveyances attacked are as follows: (1) Trust deed, dated September 12, 1896, by C. Cullen to L. H. Spillman, on his household goods, for benefit of J. C. Cullen; (2) trust deed, dated September 12, 1896, by Cullen & Newman to L. H. Spillman, on a town lot, for the benefit of Arminta Price; (3) an assignment of notes and accounts, dated September 12, 1896, by Cullen & Newman to the City National Bank, for its own benefit; (4) trust deed, dated September 14, 1896, by C. S. Newman to John W. Green, on his household goods, for the benefit of Kate E. Newman and Jeanie S. House; (5) an • assignment of stock of goods, dated September 14, 1896, by Cullen & Newman to S. G. Shields, for benefit of Mary E. Lloyd, C. Cullen, guardian of Hugh N. Lloyd, and the estate of Ellen Hunter, deceased; (6) an assignment of all their assets, dated September 14, 1896, by Cullen & Newman to S. G. Shields, for benefit of all their creditors; '(7) an assignment of all their [5]*5assets, dated September 21, 1896, by Cullen & Newman to S. G. Shields, for the benefit of all their creditors; (8) deed in fee, dated July 30, 1896, by Cullen & Newman to J. C. Cullen for tract of land, “The Valley View Farm;” (9) two mortgages to E. F. Cullen — one by C. S. Newman and wife of their home place, dated August 8, 1896, and one by Cullen & Newman of their storehouse and lot, dated August 16, 1896 — but the attack on these mortgages is abandoned in this Court. There are also two mortgages of long standing on the storehouse and lot to Arbuckle Bros., but they are not attacked in the bills. \

Cullen & Newman filed pleas in abatement to the attachments, but allowed judgments pro confesso on the debts sued on. The other defendants admit that the assignments six and seven, called general assignments, are fraudulent in law and void, but deny all other charges of fraud. Defendant, Shields, disclaims all interest under the general assignments attacked, but avers that a special assignment was made October 27, 1896, by Cullen & Newman, and he claims under that.

The theory and allegations of the bills are that on September 12, 1896, the defendants, C. Cullen and C. S. Newman, as partners and individuals, being sorely embarrassed and wholly insolvent, undertook to make a general assignment, with certain preferences, under the Act of 1895, Ch. 128, and that the six deeds first above recited, dated on September [6]*612 and 14, were made at tbe same time, in pursuance of that common purpose, each in contemplation of, and in connection with, the others, and that, though separate in form, they in fact constituted parts of one general transaction, and in law should be construed as one instrument; that the Act of 1895, Ch. 128, being unconstitutional and void, said assignment must be tested by the Act of 1881, Ch. 121; that it failed to comply with the requirements of that Act; that no sworn schedule of assets was attached; that it made preferences in violation of said Act, and that it was therefore fraudulent and void; that the said deed of July 30, 1896, to J. C. Cullen, was made in contemplation of said general assignment, was delivered and registered along with, and must be construed as a part of, it, and share with it a common fate; that that deed and all of said special assignments and trust deeds of September 12 and 14, were made in contemplation of, and within three months of, said general assignment, and were therefore inoperative and void; that all of said deeds and assignments were fraudulent not only in law, but also in fact; and that said general assignment of September 21, 1896, was a mere copy of that of September 14, 1896, with one slight variation, and that it was subject to the same objection and attack as the other.

The answers insisted that the special conveyances were separate and distinct from each other and from the general assignments; were made in good faith, [7]*7and were valid, notwithstanding the Act of 1881, Ch. 121, but admits that the general assignments are invalid and void. The Chancellor was of opinion that the several conveyances were separate and distinct, and did not constitute one transaction, and should not be, therefore, construed as one instrument; that the general assignments were void; that conveyance No. 1 was fraudulent in fact and void; that trust deed No. 4 was fraudulent and void as to the debt secured to Kate F. Newman, but good and valid as to the debt of Jeanie S. House; that deed No. 8 to J. C. Cullen was in fact a mortgage, and, as such, was good to secure to said J. C. Cullen the amount of claims against Cullen & Newman existing at the time of its execution, but not those subsequently contracted; that the others of said special assignments 'and trust deeds, Nos. 2, 3, 5, and 9 were good and valid; that said special assignment of October 27, 1896, to S. Gr. Shields was inoperative and void as against the rights of complainants, and decreed the rights of the parties accordingly.

From so much of said decree as adjudged that said several trust deeds' and assignments of September 12 and 14 did not constitute, and cannot, therefore, be construed as one transaction and instrument; and that said trust deeds and assignments Nos. 2, 3, 4, 5, and 8 are good and valid for any purpose whatever, and operate as securities to the defendants secured thereby, for any part of the indebted[8]*8ness recited therein, the complainants appealed to the Supreme Court.

The Court of Chancery Appeals heard the cases, and held that conveyance No. 1 was bona fide and valid, and that it was not made in contemplation of a general assignment, but to secure and indemnify J. C. Cullen upon his indorsement of two notes, one for $5,000 to the Holston National Bank, and the other to the Merchants’ Bank for $1,500, which were made at the time of the conveyance, and which J. C. Cullen has since been required to pay.

As to conveyance No. 2, the Court of Chancery Appeals find that the trust deed for the benefit of Mrs. Price was not made in contemplation of a general assignment, and was valid.

3. An assignment of $26,000 in notes and accounts by Cullen & Newman, on September 12, 1896, to the City National Bank as collateral" security for $22,700 that they owed said bank. The Court of Chancery Appeals finds, as a fact, that this transfer was not made by Cullen & Newman, or accepted by the bank in contemplation of an assignment by said firm. It further finds that the bank’s agents had no knowledge of, or anything to do with, the execution of any of the other instruments subsequently made by the firm of Cullen & Newman.

4. The Court of Chancery Appeals found the conveyance by C. S. Newman to John ~W. Green void as to Mrs. Newman but good as to the debt to Jeanie S. House.

[9]*95. A special assignment or trust deed upon a stock of goods, executed September 14, 1896, by Cullen & Newman to S. G. Shields, trustee, to secure $6,800 to Mary E. Lloyd, $23,766.02 to Hugh N. Lloyd, and $800 to the estate of Ellen Hunter, deceased.

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Bluebook (online)
42 S.W. 873, 100 Tenn. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-cullen-tenn-1897.