Leonard v. State

278 S.W. 654, 170 Ark. 41, 1926 Ark. LEXIS 308
CourtSupreme Court of Arkansas
DecidedJanuary 11, 1926
StatusPublished
Cited by6 cases

This text of 278 S.W. 654 (Leonard v. State) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leonard v. State, 278 S.W. 654, 170 Ark. 41, 1926 Ark. LEXIS 308 (Ark. 1926).

Opinion

Wood, J.

On the 13th of August, 1924, Lawrence McSpadden filed a complaint in the Independence County Chancery Court in which he alleged that he had obtained a judgment against T. F. and Virgie Leonard in the sum of $5,000, and that an execution had been issued and returned nulla bona, and that the. judgment was wholly unsatisfied ; that on the 12th of July, 1924, a few days before the rendition of the .judgment, Leonard and wife had made certain fraudulent conveyances of their property in which they took the notes of the purchasers instead of money, the notes amounting in the aggregate to $13,-500; that the defendants had thus systematically and premeditatedly entered into a scheme or plan for the purpose of placing their property beyond the reach of their creditors; that the defendants had considerable assets,consisting of money and notes, concealed f or the purpose of avoiding payment of plaintiff’s judgment. The prayer of the complaint was that the defendants be summoned to answer the complaint under oath, and that they, and each of- them, be required to make a full disclosure of all the assets and property belonging to them, and that they be required to deliver said property in court in satisfaction of plaintiff’s judgment, and that the conveyances of the lands made by the defendants be canceled, and that the. lands be sold to satisfy plaintiff’s judgment.

T- F. Leonard answered and admitted that he had made certain conveyances of lands as alleged in the complaint, but denied that these conveyances were made for the purpose of defrauding his creditors, and alleged in substance that the notes given for the purchase money had been disposed of by him prior to the service of the writ upon him in the present action, and alleged that he was a citizen of Texas, and that he had no money except a few hundred dollars, on his person; that he had no property within the State of Arkansas at the time of the service of summons upon him in this action. He denied that he had entered into 'any scheme or plan to defraud creditors by making fraudulent conveyances of his property or concealing any of his assets for the purpose of avoiding, the payment of the plaintiff’s judgment. He concluded his answer by offering to make any further disclosures that the court might desire under oath, and asked that the plaintiff’s complaint be dismissed.

The cause was heard upon the above pleadings and oral testimony, and the court made the following findings: That the defendant, T. F. Leonard, left the State of Arkansas after the service of summons on him in this cause and after the rendition of judgment against hipa and Virgie Leonard for $5,000 on July. 15,1924, in this court, and further found that he converted his property here into liquid-assets consisting of moneys, notes and county warrants in a sum far in excess of the amount of the judgment, interest and costs which had been rendered against him and the defendant, Virgie Leonard; that, the defendant Virgie Leonard permitted the defendant T„ F. Leonard to take her property with him from the State of Arkansas, and that neither of them have any property in the State of Arkansas subject to execution or. to the payment of the plaintiff’s judgment, and the court found that the defendant, T. F. Leonard, should turn over and pay into this court the sum of $5,000 with interest thereon from July 15, 1924, at six per cent, interest to date of payment, and the costs of said suit, including this suit, in the sum of $238.95.

Upon the above findings of fact the court then rendered the following judgment: “It is therefore■ considered, ordered and decreed by the court that the defendant, T. F. Leonard, do pay into tbe registry of this court, or to the clerk thereof, the above-named sum of $5,000, with interest at six per cent, per annum from July 15,1924, to date of payment, and the sum of $238.95 costs to date, on or before, and not later than October 1, 1924, in satisfaction of said judgment, interest and .costs, and, upon his failure so to do by .the date aforesaid, he shall be and is hereby adjudged in contempt of this court, and the clerk of' this court is hereby directed to issue proper citation and warrant for his arrest that he may be brought before this court to be dealt with in such manner and upon such terms as the court may then deem suitable and proper.” From the above decree the defendant Leonard prayed an appeal, but did not perfect the saíne. v

On the 8th of October,-1924, the plaintiff McSpadden applied to the chancery court for a citation and warrant of arrest for T. F. Leonard for contempt of court, and the court issued, an order citing Leonard to appear before the court to answer the charge of contempt, and a warrant directing the sheriff to arrest him and bring him before the court. , Leonard responded to the citation for contempt, setting up that he disclaimed any intentional or wilful failure to comply with the orders of the court. He alleged that the court was without jurisdiction to render the decree of the 12th of September, 1924; that he did not have in his possession at the time the decree was entered or at any time'subsequent thereto'the sum of money he was directed to pay into court, and that it was physically impossible for him to comply with the order and judgment of the court. He set up that the debt which the plaintiff was seeking to collect was a debt due on contract, and also that, subsequent to the judgment and subsequent to the order adjudging the defendant in contempt, he had been adjudged a bankrupt by the District Court of the United States for the Eastern District of Texas, and had received his discharge in bankruptcy, and that therefore the chancery court was without jurisdiction tó proceed further against him on the trial of the citation for contempt.

The court, after hearing the testimony, found “that the defendant, T. F. Leonard, wilfully and deliberately and without any excuse, violated the order of this court made on September 12, 1924, directing him to pay into this court the sum of $5,000 and the costs of this court in satisfaction of the judgment of Lawrence McSpadden, and the court finds that, at the time of the order made requiring the defendant Leonard to turn over and pay into the registry of this court said sum, he had then more than that amount of money and property which were the proceeds of notes and scrip which he had fraudulently taken away from the State to the State of Texas, and of which he had made fraudulent transfer to one Hargrove, in the State of Texas, and in violation of and notwithstanding this order of the court the defendant continued to dispose of said property and make way with it, and made no effort to comply with the order of this court, and the court finds that his subsequent voluntary bankruptcy and pretended insolvency in the State of Texas was not bona fide, and the court finds that he has now in his possession and under his control property and assets of the value of $4,500 or more, which is the proceeds of some of the property that he took away from here in August, 1924, and which property belonged to his wife, Virgie Leonard, or the defendant, and that it should be paid into this court to satisfy the prior order of this court, and that the defendant T. F.

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Bluebook (online)
278 S.W. 654, 170 Ark. 41, 1926 Ark. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leonard-v-state-ark-1926.