Leupold v. Krause

95 Ill. 440, 1880 Ill. LEXIS 197
CourtIllinois Supreme Court
DecidedJune 16, 1880
StatusPublished
Cited by25 cases

This text of 95 Ill. 440 (Leupold v. Krause) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leupold v. Krause, 95 Ill. 440, 1880 Ill. LEXIS 197 (Ill. 1880).

Opinion

Mr. Justice Dickey

delivered the opinion of the Court:

We concur with the circuit court in its finding, that the conveyances from Christian and Anna Leupold to their son Henry, and from Henry to Anna, were fraudulent, and made for the purpose of preventing Krause from collecting whatever judgment he might obtain against Christian. It would serve no useful purpose to discuss the evidence bearing on this point, and we shall, therefore, simply say, the proof of fraud is satisfactory.

As to the conveyance from Anna to Gustave, however, the only evidence tending to show fraud on the part of the latter, is the testimony of the complainant and his brother-in-law, who say Gustave had no property, to their knowledge, at the time the conveyance was made to him; coupled with the further facts, that Gustave was a son of Christian and Anna, and the transfer was made only a short time prior to the rendition of the judgment in complainant’s favor. There is an entire absence of testimony tending to show Gustave had any knowledge of the pendency of Krause’s suit, or of any intention on the part of his father to fraudulently convey his property. The finding of the court below, that the conveyance of the forty acres to Gustave was fraudulent, is, therefore, not sustained by the evidence, and must be reversed.

It remains to be considered whether the defendants, Anna, and Christian Leupold, have a homestead right in the land not conveyed to Gustave, and if so, the effect of such home-stead right upon the title derived by the complainant'under the sheriff’s sale.

On the part of appellee it is insisted that, inasmuch as the conveyances to Henry, and by him to Anna, are shown to have been made for the purpose of defrauding Krause, neither Christian nor Anna is in a position to assert a right of homestead. On the other hand, appellants contend that, as the premises were the homestead of Anna and Christian at the time of the levy and sale, and the sheriff did not comply with the provisions of the statute in regard to setting off the homestead, the sale was null and void, and conferred no title upon the complainant.

No conveyance of property exempt from execution can be considered fraudulent as against a creditor. Injury is an essential element of fraud, and where injury is wanting there can be no fraud. We have repeatedly held that the lot of ground occupied by the debtor as a residence is, to the extent of $1000 in value, exempt from levy and forced sale, and when sold by the debtor, the purchaser takes it to that extent free from all judgment liens. When, therefore, this property was conveyed by Christian and Anna to Henry, and by the latter to Anna, she acquired the title to $1000 in value of the property, free from the claims of complainant and all other creditors. Counsel have argued this case upon the assumption that, if there is a homestead right in the land in controversy, it belongs to Christian Leupold. But the conveyance made by him and his wife to Henry contained a release of the homestead, and Christian was thereby divested of all right, of every nature, in the property. Henry then conveyed to Anna, who has ever since occupied the premises as a homestead, and it is to her that the $1000 in value belongs. Pro. tanto the conveyance to her has worked no injury to Krause, and is therefore valid. The mere fact that other portions of the property were fraudulently conveyed to her, does not entitle Krause to more than he would have obtained had no fraud been committed. Courts of equity, in affording relief against fraud, seek simply to restore the parties, as near as may be, to the positions they would have occupied had no fraud been perpetrated. Neither fraud, nor even the commission of a criminal offence, can work a release or forfeiture of the right of homestead. Such release or forfeiture can only be accomplished in the manner provided by the statute. Clearly, then, Anna Leupold has a homestead right in these premises to the extent of $1000 in value for herself and family.

In support of their position, that the sale by the sheriff was null and void, because the homestead was not set off, counsel for appellants cite the case of Hartwell v. McDonald, 69 Ill. 293, in which this court said: “ The provision of the Homestead law is, that ‘ there shall be exempt from levy and forced sale, under any process or order from any court of law or equity in this State, * * * the lot of ground and the buildings thereon occupied as a residence and owned by the debtor, being a householder and having a family, to the value of $1000.’ It is not the mere homestead right of occupancy which is exempted from levy and forced sale, but it is the lot of ground occupied as a residence. This court has uniformly held that a judgment is not a lien upon homestead premises; that the owner may sell or mortgage the same, free from the lien of the judgment, and that no liability can attach to the land in the hands of the purchaser, for the previous judgment debt of his grantor. It has been held that the property is neither subject to a lien, a levy nor a forced sale under judicial process, while occupied as a homestead; that it does not vary the result, whether the premises are worth more or less than $1000; that if not worth more than that sum, the sale is prohibited by the statute; and if worth more, then, none of the requirements of the statute having been observed in malting the levy and sale, the sale is unauthorized. The sales referred to being, of course, such as are made without regard to the provisions of the act, as was the sale in this case, property thus situated is held not to be liable to levy and sale on execution, and such sales of it are held to be inoperative and void, and that the purchaser acquires no title thereunder.”

That case was an action at law. The case at bar is a proceeding in equity. In that case a sale under execution had been made of premises occupied by the judgment debtor as a residence for himself and family, at which sale the officer did not comply with the provisions of the statute as to setting off the homestead. After the sale the judgment debtor abandoned the premises, and a third person entered into possession of them. The purchaser at the sale, upon obtaining a deed, brought ejectment; and the only question presented to the court and argued was, whether the sale under execution of premises occupied as a homestead would pass the fee, leaving to the judgment debtor a mere right of occupancy, so that upon the abandonment of the homestead, the purchaser’s title would become complete, and he might maintain ejectment. The court, in accordance with previous decisions, held it would not. Everything contained in the opinion in that case must be limited in its application and meaning by a consideration of the case then under discussion. The relief which may be had in a court of equity was not then before the court.

The question as to what relief may be granted in equity to a purchaser at a sale under execution, where the homestead had not been set off, was directly presented to this court in the case of Loomis v. Gerson, 62 Ill. 11, which was a bill in equity, filed by the grantee of a judgment debtor, to set aside a sale under execution of premises occupied by the judgment debtor as a homestead, on the ground that the sheriff had not complied with the provision in question. The court below granted the relief prayed for and set aside the sale. Upon appeal to this court the decree was reversed, the court saying: “ The sale, hoAvever, should not be absolutely set aside.

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Bluebook (online)
95 Ill. 440, 1880 Ill. LEXIS 197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leupold-v-krause-ill-1880.