McCauley v. Rodes

46 Ky. 462, 7 B. Mon. 462, 1847 Ky. LEXIS 57
CourtCourt of Appeals of Kentucky
DecidedJuly 29, 1847
StatusPublished
Cited by2 cases

This text of 46 Ky. 462 (McCauley v. Rodes) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCauley v. Rodes, 46 Ky. 462, 7 B. Mon. 462, 1847 Ky. LEXIS 57 (Ky. Ct. App. 1847).

Opinion

Chief Justice Marshall

delivered the opinion, of the Court. —

Judge Breck did not sit in this case.

It is the opinion of this Court, that as the deed of tfust made by Ferguson, for the benefit of his wife, professes to convey only so much of her own estate as had not been reduced to possession by him, or as was not vested in him by law, it did not convey any interest either in the land or slaves which had been allotted to her in the division of her father’s estate, but the same having at the time of her marriage, and at the date of the deed of trust, three months afterwards, been in possession of her guardian or his lessees for her, were in her possession, so as to vest in her husband the absolute title to the slaves, and the right to the land during their joint lives. The deed conveys nothing specifically by name or description, but only such property, without specification, as the wife was entitled to as heir or distributee, and as had not been reduced to possession, or become vested by law absolutely in the husband. And as the insolvency of the husband entitled the wife to a settlement out of her property, we are satisfied that there was no fraud either in the intent with which the deed was executed, or in its actual operation, and that McCauley’s bill, praying on the ground of fraud in the deed, to subject to the satisfaction of his debt, whatever estate, in land, slaves or personalty, was conveyed by it, did not operate as an attachment or lien up[463]*463on any estate not conveyed, and was not a Us pendens beyond the operation of the deed, because it neither described nor sought to subject any estate derived from the wife, except as estate fraudulently conveyed by the deed, and because it did not seek the subjection of any specific thing, either as having been conveyed, or as not being ■embraced in the deed ; but alledging fraud in the deed, prayed that it might be set aside, and that whatever it conveyed might be subjected. As nothing passed by the deed, the complainant could get nothing by this prayer, and attached nothing, even if he had succeeded in showing fraud. And as the deed would not have been fraudulent, even if something had passed by its terms as not having become vested in the grantor as husband, the complainant would have been entitled to nothing, even under this hypothesis.

A bill by a creditor for a discovery of assets, will not operate as a lien upon any interest, or right which might have been known by consulting the public records, and which were not specified in the bill.

It follows, that in our opinion this bill of McCauley constituted no such lien or attachment, or Us pendens, as to prevent such interest as Ferguson, the debtor, had in the estate of his wife from passing absolutely to the assignee in bankruptcy, under his application for the benefit of the bankrupt law, made some days after the filing cf the bill. And as the three other bills of Strawbridge, Ryan, &,c, and Waterman, filed in the intermediate period, do not even mention the deed, nor refer to any estate of Ferguson held in right of his wife, nor specify any property, exceptan alledged interest in a store, and some pecuniary demands hereafter to be noticed ; but only pray for a discovery of estate, and for the subjection of such as may be discovered, we think it entirely clear that these bills present no obstacle to the title of the assignee in bankruptcy. The 38th and 39th sactions of the execution law of 1828, do not, by fair construction, operate to give a lien upon the filing of every bill of discovery, of whatever nature it may be. And we remark with reference to the first, as well as the three last bills, that although it is the object and policy of the attachment laws, to give substantial aid to creditors resorting to the remedies which they furnish, there are still some other interests to be kept in view, and which creditors resorting to these laws are themselves bound to respect. A [464]*464due regard for these interests, requires that bills by which the defendant is to be restrained from disposing of property, of which, in the eyes of the community, he appears to be the owner, with the absolute right of disposition, should at least specify the properly which without being actually taken into the custody of the law or its'officer, is to be absolutely withheld from transfer, and tied up in the bands of the owner, by the silent and hidden, operation of a lis pendens. The bill of discovery is given as a means of ascertaining secret or involved interests not open to ordinary observation. In the present case, the allotment of the land and slaves to the wife of Ferguson, were shown by the appropriate records of the county. His deed of trust had also been recorded near two years before these bills were filed. The means of specifying any or all of this properly, were easily accessible. There was no need of a discovery as to that, and no excuse for the absence of specific allegation and description. And w'e think the complainants having neglected the obvious means of information and of certainty, are entitled to no aid by a favorable construction, either of their own vague allegations or of the statute, in their attempt to give a preference over other creditors.

We are satisfied, therefore, that the interest of Ferguson in the land and slaves, which had descended to his wife, was properly decreed to the assignee in bankruptcy.

With regard to the alledged interest of Ferguson in the store of G. B. Hale & Co., which all the bills, and the cross bill of the assignee seek to appropriate, we are -of opinion, upon the bills and answers, that there was no such interest, eilher on the ground of fraud in the sale by Ferguson to Rodesand Macklin, or on the ground of agreement or trust. It appears clearly that they took Ferguson’s interest in the store, upon the ascertainment of his insolvency, with great reluctance; and as a measure absolutely necessary to save them from loss on account of their engagements entered into at Ferguson’s request, ás sureties for the purchase of the goods. The transfer from Ferguson to them was absolute, without trust or condition. There was at the time no such inequality in the bargain, as either to create the inference of a secret [465]*465trust or reservation which the parties positively deny, or to authorize the Chancellor to give that character to the transaction against the intention of the parties. Rodes •and Macklin, for themselves, and in behalf of the creditors of Hale & -Ferguson, were entitled in the disposition of the store, to a preference over all other creditors of Ferguson. There is little probability that if the business of the firm of Hale & Ferguson had been coercively dosed for the satisfaction of creditors, any thing could have been realized for the separate creditors of Ferguson-. The complainants, therefore, have lost nothing by the arrangement with Rodes and Macklin ; nor have the gen-o-ral creditors of Ferguson, who are represented in this suit by the assignee; and although it be assumed that in consequence of the arrangement by which Rodes and Macklin-took the place of Freguson, the-new firm has, at their risk, and with their credit, and by good management-, conducted a profitable business, this result thus accomplished, gives no enforcible right to Ferguson or to his creditors claiming through him, to demand a participation in the -profits ultimately realized-.

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Cite This Page — Counsel Stack

Bluebook (online)
46 Ky. 462, 7 B. Mon. 462, 1847 Ky. LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccauley-v-rodes-kyctapp-1847.