Justice v. . Scott

39 N.C. 108
CourtSupreme Court of North Carolina
DecidedDecember 5, 1845
StatusPublished
Cited by2 cases

This text of 39 N.C. 108 (Justice v. . Scott) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Justice v. . Scott, 39 N.C. 108 (N.C. 1845).

Opinion

Ruffin, C. J.

The Court is of opinion, that the injunction ought not to have been dissolved, that is, not absolutely. The claim set up for the children of Jones under his settlement may be put out of the way at once. To say nothing of the prima facie fraud in it, as being a voluntary settlement upon his family by one, who, as he now says, was then indebted to his Mother’s estate, and so soon became indebted to others, and insolvent; and, as he says, bankrupt; yet the deed is void for want of due proof and registration. Smith v. Castrix, 5 Ired. 519. We collect from the answer of Scott, that it was in reference to this claim of the children he regarded himself as trustee for them ; considering that their father had assigned to them, or to Morris for them, his resulting trust, which was for the whole property after the debts were paid. If, then, the settlement by Jones be not effectual, the resulting *113 trust is still in him, and that amounted to the whole beneficial property, as this defendant supposed, from the rep-' resentations of Jones, and from his formal release, that the debt to the mother was paid as well as all the others. It was consequently wrong- for Scott to set up his legal title, in opposition to the right of the plaintiff, derived by 3)is purchase, under execution against the sole cestui que trust of the property; for the plaintiff, by his purchase, stood, in this Court, in the place of Jones in his relation to Scott, and the latter is therefore endeavoring to recover the possession or the value of the negroes, from his own cestui que trust.

But it is said by the other defendant, that his children have another interest in this property. lie states that the money which his mother lent him, was, under their grand-father’s will, theirs after the grand-mother’s death; that in truth it has never been paid by him; and therefore he insists, that it ought now to be raised for their benefit. There are several answers to this claim. This is new matter, brought forward in the answer, in avoidance of the plaintiff’s equity, and not responsively to the bill, and in denial of the equity. Therefore, the injunction should have been kept up to the hearing. In the next place, the children have not the right to the money at present, but only the capital after the death of their father, who is entitled to the profits during life. But in the last placo, and chiefly, the children have no equity as against these negroes, unless it were to appear, that their father has not satisfied them, and is not able to satisfy them. Ho borrowed the money, and he settled on them six other negroes besides these two; and it is no where stated, that, unless they should receive that sum out of these negroes, they will lose it, inasmuch as they cannot get it in some other way from their father or their grand-mother’s estate. Prima facie, the declaration un-' der seal of the defendant, Jones, who-is administrator of his mother, the creditor, that the debt had been paid, dis *114 charges therefrom the trustee of the trust property. If the children have a right in the money, and an equitable lien on. this debt therefor, let them file their bill, and put the questions, upon which their title depends, directly in issue. They cannot bo brought forward in a •way, which will not enable the Court to investigate the whole case, upon which the merit of the claim depends.

Those supposed rights of the children being thus disposed of, there remains nothing to shew, that the whole equitable ownership of the property was not in Bryan Jones, and liable to execution under the act of 1812; unless it be, that his right passed to his assignees in bankruptcy. As to that, the answer states nothing^ but the fact, that, before it was put in, the defendant had been discharged as a bankrupt; but when that was, or Avhether these negroes were included, in the assignment, is not stated. So that no right appears in the assignees, even if it were competent for. this party to set up such a right for the assignees, instead of leaving it to them to do it. It is very clear, that the suit at law was not instituted for the benefit of the general creditors; but only to get the negroes for the debtor’s children.

It was, however, objected at the bar, that all the questions, arising upon the facts stated in the bill, were legal questions, properly triable in the suit at law ; and that the plaintiff could not transfer the jurisdiction to this Court, after a suit properly constituted for the trial of them at law. With respect to this point, it is to be observed, that the bill is framed with two sets of allegations, having a view to relief upon different, and, indeed, opposing grounds. There is not, it must be admitted, a clear discrimination made between them in.the bill, but much confusion in mingling together the facts, upon which the two grounds of relief, taken separately, depend. But we collect, that the bill was framed with the intention of trying here the question, whether the deed was or was not originally covinous, as a security for feigned debts, and *115 deceptive to creditors; and also the further question, whether the debts secured by the deed — admitting it to be hsna fide — had not been paid, so as to vest the whole equitable right, as a resulting trust, in Bryan Jones. As to the first point, we think the objection sound. The bill alleges no defect of proof of any fact, on which the question of fraud depends. If it had, it would onl_y be matter for discovery, to be used on the trial at law, and not for relief. In its nature, the controversy, whether a deed by a debtor is fraudulent, as to his creditors, under the stat- ' ute of Elizabeth, is a legal one: though, in particular eases, it may be made the subject of a suit in equity. But here it was in a course of litigation at law ; and it is plain that it ought not to go on there, and one be carried on here at the same time, upon the very same subject. Then, upon what principle has the defendant at law a right to change the iorum, and say that he will have the matter tried by the Judge in the Court of Equity, and not by a Judge and Jury in a Court of Law 1 If, therefore, that were all the bill, the Court would not sustain il.

But, in the second aspect, the case, we think, is properly a subject of equitable jurisdiction. The case, that a trustee in a deed, made to secure creditors nine years before, instituted an action at law against a purchaser, under an execution against the maker of the deed, and the purchaser alleges, that all the debts were paid and the whole trust resulted to the debtor, while the debtor, who also unites in himself the character of creditor, by administering upon the estate of one of the creditors secured in the deed, says, that a certain debt’ is not paid, and the trustee says he does not know whether it is or is not paid. It is true, if all the debts were paid, that, under the Act of 1812, the sale by the Sheriff transferred to the purchaser both the trust and the estate of the trustee ; and that he might set up that title and defend himself at law. But that does not oust the jurisdiction of the Court of Equity over the trust, which it originally had, accord *116 ing to a well established principle.

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Cite This Page — Counsel Stack

Bluebook (online)
39 N.C. 108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/justice-v-scott-nc-1845.