Jones v. Davenport

44 N.J. Eq. 33
CourtNew Jersey Court of Chancery
DecidedFebruary 15, 1888
StatusPublished
Cited by3 cases

This text of 44 N.J. Eq. 33 (Jones v. Davenport) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Davenport, 44 N.J. Eq. 33 (N.J. Ct. App. 1888).

Opinion

Van Fleet, V. C.

These, three suits, by arrangement of counsel, were heard together, but not consolidated.

The complainants are creditors of James S. Davenport, deceased, and the defendant is his widow. The suits were brought to set aside transfers of certain property, which Mr. Davenport made to the defendant just before his death. The ground on which such judicial action is sought is, that the transfers were made to defraud creditors. Mr. Davenport died on the 6th of July, 1884. He left a will, bearing date January 28th, 1878, by which he gave all his property to the defendant absolutely, and appointed her his sole executrix. She is made a defendant in both her individual and representative capacities. Mr. Davenport, at the time of his death, was liable, in addition to his in[35]*35■dividual debts, for the debts of two copartnerships. He was a member of the firm of Davenport Brothers, composed of himself ■and his two brothers, Thomas and Samuel W. This partnership was formed in 1853. The members did business together ■as crockery merchants in the city of New York, and the firm •continued in existence up to the time of Mr. Davenport’s death. •James S. and Samuel W. Davenport are both dead. James S. •died, as already stated, on the 6th of July, 1884, and Samuel W. Davenport on the 1st of August following. Thomas alone survives. The estate of Samuel W., it is admitted, is insolvent. The assets of Davenport Brothers are insufficient to pay their debts. The affairs of that firm are being wound up under the direction of this court. James S. Davenport had also been a member of the firm of Davenport, Johnson & Co., which was formed on the 1st of November, 1880, under an agreement that it should carry on business for three years, and was composed uf James S. Davenport and his son, James B. Davenport, his son-in-law, Edward L. Yoorhis, and a young man by the name of William S. Johnson, of whom James S. Davenport- liad been guardian. This partnership was formed to carry on the business of buying and selling supplies for cotton and woolen mills at two different places, namely, the city of New York and the city of Atlanta, in the state of Georgia. By the copartnership agreement, Johnson alone was required to put in a money capital. He was to contribute $15,000, James B. Davenport and Yoorhis were to contribute their “influence, experience, trade acquaintance and personal services,” but no money. James S. Davenport was not to contribute any money, nor to share in the profits, but he was to aid the firm as much as possible by the use of his name and influence. Johnson died in July, 1881, but the business of the firm, notwithstanding, was continued until about the 1st of November, 1883, when the firm was compelled to suspend in consequence of its insolvency becoming known. A receiver of its assets was subsequently appointed in Georgia, who realized scarcely enough to pay one-fourth of its liabilities.

The debts of the complainants represent the three classes of [36]*36liabilities. William L. Jones, the complainant in the first suit,, is a creditor of Davenport Brothers. A part of his debt was contracted nearly twenty years ago. He has recovered two judgments in the supreme court of this state, by confession, the. first being entered November 26th, 1884, against Thomas Davenport individually, for $8,151, and the second, December 25th, 1884,, against Thomas Davenport, as the survivor of Davenport Brothers, for $7,320. Both are founded on debts of Davenport Brothers. The complainants in the second suit, Daniel B. Fayerweather and others, are creditors of Davenport, Johnson and Company. The principal part of their debt was contracted between March 1st, 1880, and November of the same year. They recovered a judgment in the supreme court of the state of New York, for over $11,000 against James B. Davenport, and Edward L. Voorhis, as the survivors of the firm, on the 23d of August, 1884, and subsequently, and within the time limited for that purpose, exhibited their claim, under oath, to the defendant as executrix. The complainant in the third suit, The First National Bank of Somerville, holds a debt incurred by James S.. Davenport, in his individual capacity, in 1878 or 1879. A judgment was recovered for this debt against the defendant as executrix, in the supreme court of this state, on the 26th of February, 1885. The estate of James S. Davenport, deceased, was declared insolvent by the orpháns court of Somerset county, on the 29th of May, 1885. An execution issued on the last-mentioned judgment, was set aside after the decree of insolvency was made.

The transfers denounced as fraudulent are seven in number — - five of land and two of personal property. The first is a deed made by Thomas Davenport and wife to the defendant, bearing date March 1st, 1879, conveying the undivided one-third of a tract of land, in Jersey City, for a consideration, as the deed states, of $11,000. Thomas held the one-half of the one-third of the land conveyed, or the one-sixth, in his own right, and the other one-sixth as trustee for his brother James. James’s interest was conveyed to the defendant by James’s direction. Thomas was paid for his interest, but the charge is, that the conveyance, as to James’s interest was voluntary, and made with the intent [37]*37■to defraud creditors. Afterwards, and in 1884, Janies S. Davenport made four conveyances to his son-in-law, Hugh N. Hart-well, who, immediately after acquiring title, passed the same, in' ■each instance on the same day, to the defendant. She thus became invested with her husband’s title to the lands in controversy. The first deed bears date January 28th, 1884, and conveys a tract of land in the city of Plainfield for an apparent consideration of $13,537.71; the second is dated April 1st, 1884, ■and conveys the house and lot, where all the parties resided at the date of the deeds, situate on the corner of Cliff and Cedar streets, in the town of Somerville, and states that the conveyance was made for a consideration of $11,520. The defendant swears thát it was understood that the consideration paid for the last ■described property, also paid for the goods and chattels, belonging to her husband, in the house and on the premises conveyed, including several carriages, a pair of horses and their trappings. The third and fourth deeds each bear date May 26th, 1884, one •conveys the undivided half of about sixty acres of land, situate in the township of Bridgewater, Somerset county, which has been called in these suits the Cornell property, and states that the consideration paid was $7,072.50; and the other conveys the undivided half of what has been known in the trial of these cases as the Steele property, situate in the town of Somerville, and purports to have been made for a consideration of $4,925.26. The transfers of personal property were made by James S. Davenport directly to the defendant, and consist in the passing over to her, on the 21st of April, 1884, of eighty-six shares of the ■capital stock of the First National Bank of Jersey City, for an alleged consideration of $12,479.68, and on the 9th of May, 1884, of fourteen other shares of the same stock, for a consideration of $2,979. This stock, the defendant admits, she sold, in September, 1884, for $18,000, thus realizing in about five months after she got the stock, over $2,500 more than she claims to have paid for it.

So that it appears, in less than six months prior to his death, and after he knew that one of the firms, of which he had been a member, was insolvent, Mr. Davenport made over to his wife [38]

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Cite This Page — Counsel Stack

Bluebook (online)
44 N.J. Eq. 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-davenport-njch-1888.