Leavitt v. Leavitt

47 N.H. 329
CourtSupreme Court of New Hampshire
DecidedJune 15, 1867
StatusPublished
Cited by1 cases

This text of 47 N.H. 329 (Leavitt v. Leavitt) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leavitt v. Leavitt, 47 N.H. 329 (N.H. 1867).

Opinion

Bellows, J.

The grounds of defence relied upon, arise from the evidence offered by the defendant to show, in him, as executor of an insolvent estate, a right to the possession of the demanded premises, or else that he was a tenant at will, and entitled to notice to quit.

Upon the first point the defendant proposed to prove, that claims have been presented to the commissioner of insolvency against said estate, due before and after the date of the deed under which the plaintiff claims, and that the personal estate is.not sufficient to pay the debts ; and the defendant urges that under such circumstances the deed is invalid to convey the estate to plaintiff as against creditors existing at the time, or as against the defendant as their representative.

On this point the case of Pomeroy v. Bailey, 43 N. H. 118, would seem to be decisive. It was there held that a voluntary conveyance for the consideration of natural love and affection, made by a person not embarrassed at the time, but retaining ample means to pay all his existing creditors, is good; unless it be made to appear that such conveyance was not bona fide.

In the case before us, we have a voluntary settlement made upon consideration of natural affection, which is a good, though not a valuable •consideration, and there is nothing in the proofs offered that impeaches ills good, faith of the settlement. It is proposed to show that some [333]*333claims were presented against the estate that were due when the deed in question was made, and that the personal property is not now sufficient to pay all the debts; but it is not proposed to show that ample means were not retained to pay all the debts then due; or that the deceased was then embarrassed; or'that the settlement was not made in good faith ; neither does he propose to prove that this real estate is needed to pay the debts, or that the personal estate with the other real estate, is not sufficient. This being the case, we are satisfied that the proof offered would not affect the validity of the settlement, and therefore would be no defence.

Besides, it is by no means certain that the defendant could in this mode impeach the settlement, even if it were made in bad faith, and therefore void as to creditors. In James v. Bryant, 13 N. H. 53, it was decided that the creditors of a fraudulent grantor had no right to enter upon the land and take the profits before they had extended their executions upon it, and that until then, the grantor was lawfully in possession and taking the profits ; and this is upon the ground, that, as between the parties, the conveyance is good, and confers upon the grantee the title until defeated by levy of execution.

The administrator of such grantor represents both the heirs and creditors. As the representative of the former he cannot impeach the conveyance. As the representative of the creditors he might, probably, in their behalf, bring a suit in equity to set aside a fraudulent conveyance, and perhaps after proof of the claims of the creditors who are entitled to impeach the conveyance, he may obtain a license and sell the entire estate disregarding such fraudulent conveyance, and thus confer upon the purchaser the right to contest it. Such at least seems to be the doctrine of Kingsbury v. Wild, 3 N. H. 30 ; and so it is held in Drinkwater v. Drinkwater, 4 Mass. 354. If the latter course can be adopted at all, it must be as a substitute for the levy and sale on execution during the life of the grantor; and it would seem from recent decisions" that the sale should be of the entire property, and not merely the interest of the deceased at his death.

See Bean v. Bracket & al., 34 N. H. 102, 122, where it was decided that on a sale by an assignee in bankruptcy the purchaser must take the propei’ty subject to any incumbrance that the assignee has not chosen to avoid. A similar doctrine is held in Flanders v. Jones, 30 N. H. 155. There a creditor had caused to be sold upon execution'his debtor’s equity of redemption in' certain real estate, and the sheriff’s deed purported to convey all the right which the debtor had, at a certain date, to redeem the land. The court decided that the purchaser under these circumstances could not impeach one of the mortgages referred to in the officer’s return. That the creditor might, if he chose, treat such mortgage as valid; and if he did so, and sold only the debt- or’s right of redemption, the purchaser would take that alone, and could not defeat the mortgage by alleging that it was fraudulent.

The case of Brewer v. Hyndman, 18 N. H. 9, lays down the same principle, and so is Russell v. Dudley, 3 Met. 149. If, then, the creditor proposes to avoid such a conveyance he should do so before a [334]*334sale, either by extending his execution upon the whole land, disregarding the mortgage, or if there be, as in Flanders v. Jones, one valid mortgage which makes a sale of the equity necessary, then by selling it subject to that only, and in the notices, sale and deed, so representing it.

From these cases it would seem that an administrator might, in proper cases, sell so much of the real estate of the deceased as was necessary to pay debts, and give to the purchaser the right to avoid a fraudulent conveyance, taking care to sell and convey the entire estate, and not subject to such fraudulent conveyance. 0

It is, however, another question Avhether the administrator is entitled to possession, and to receive the rents and profits, AAdien, as in this case, the estate had vested in another by a conveyance which Avas valid against the intestate and his heirs. If, in any such case, he Avould be entitled to enter and take the profits, it Avould be only where proper steps had been taken to avoid the conveyance in behalf of the creditors, and where the circumstances were such in respect to the character of the conveyance, and the condition of the deceased’s estate, as to entitle him to avoid it. Unless such circumstances are shown, the grantee is entitled to hold the estate, and his possession ought not to be disturbed.

In this case the mere proof of insolvency would not be sufficient to defeat the plaintiff’s title ; and besides, it is by no means clear that the decree of insolvency, even if it had been prior to the bringing of this suit, would have been, as against this plaintiff, proof of actual insolvency within the meaning of the Compiled Statutes, ch. 168, sec. 10.

The provisions of that law are, that the administrator shall receive the rents and profits of the real estate, in case the estate is insolvent; but the proof offered is not that the estate is actually insolvent, or even that any part of the land in question is needed to pay the debts, but simply that the personal estate aauis insufficient.

For some purposes, the decree of insolvency is conclusive; as it would be in determining the mode of proving claims against the estate. Judge of Probate v. Brooks, 5 N. H. 82; Ticknor v. Harris, 14 N. H. 272. In other cases it has been held not conclusive, as in Plumer & al. v. Plumer, 30 N. H. 558, where it Avas decided that where an estate was-settled in the insolvent course, but was actually solvent, and the real estate not needed to pay the debts, the heir might maintain an action for an injury to the realty or its incidents; in this case the recovery was for the taking of manure.

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56 N.H. 364 (Supreme Court of New Hampshire, 1876)

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47 N.H. 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leavitt-v-leavitt-nh-1867.