Mead v. Conroe

8 A. 374, 113 Pa. 220, 1886 Pa. LEXIS 351
CourtSupreme Court of Pennsylvania
DecidedOctober 4, 1886
StatusPublished
Cited by14 cases

This text of 8 A. 374 (Mead v. Conroe) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mead v. Conroe, 8 A. 374, 113 Pa. 220, 1886 Pa. LEXIS 351 (Pa. 1886).

Opinion

Mr. Justice Gbetcn

delivered the opinion of the court,

lu this case it was clearly proved and not at all contradicted that Mead purchased the judgments of prior lien creditors,, which were transferred to him for a full consideration, being the whole amount due on each judgment, part of which he paid at the time, and the remainder subsequently. As this purchase was not made until the day fixed for the sale of the real estate, and there was no proof of a previous agreement with Crull, that he, Mead, should make the purchase, there is absolutely no evidence that it was done in pursuance of a preconcerted design and agreement with Crull, or with any one. It was also an undisputed fact that Mead had no agency in the proceedings for the sale of the real estate. He did not cause the writ of execution to be issued, nor is there any evidence that he ever had knowledge that it was issued, or that the property was to be sold until very shortly before the day [224]*224of sale. He held a junior judgment, and on the day fixed for the sale he did what any lien creditor in his position was perfectljr justified in doing,'bought up the judgment upon which the execution was issued and several other of the prior liens. Plis action in this respect does not afford the slightest evidence, not even a scintilla, of a dishonest or fraudulent purpose. It was further affirmatively proven and not at all contradicted, that Mead did not interfere with the sheriff’s sale, did nothing to deter bidders, and bought the land in question as the highest bidder, at a public, fair, judicial sale, open to all bidders, which has never been questioned or impeached in any manner. The fact of a purchase in such circumstances at a price considerably less than the actual value of the property, is no ground for the slightest inference of a fraudulent purpose.

The validity of his title is impeached upon the ground “that as early as Juty, 1878, David.Crull and Darius Mead entered into a fradulent agreement that, for the purpose of hindering, delaying, and defrauding the creditors of Crull, all Crull’s property, real and personal, should be transferred to Mead by means which would be apparently legal, Mead advancing whatever money was absolutely necessary, but to re-convey to Crull whenever he should be repaid, and Crull should be ready to take back his property.” The burden of proving this corrupt agreement, of course, rests upon the plaintiff Conroe. It is scarcely necessary to say that before a man’s title to real estate, purchased at an open public judicial sale for the highest price offered, can be swept away upon such an allegation as is here made, the substance of the charge must be proved by evidence of a satisfactory character, and if there is no such evidence in the case, the jury should be so instructed and the case withdrawn from their consideration. We have patiently read and studied every particle of the testimonjmn this case, and have reached the conclusion that there is no evidence in it which is at all sufficient to prove the truth of the allegation made. Very much stress was laid upon the fact that the defendant had purchased the judgment and execution upon which the sale was made, and had acquired the property at a very low price. Of course, if the sale had been a private one, there would have be^n very much force in the position that it was made at an undervaluation. But in the case of a sheriff’s sale, open to all bidders, the fact of a small price is entitled to no weight whatever as the basis of an inference of fraud. So too it was most earnestly argued that, because Crull remained in possession of the property sold, such possession was a badge of fraud. But while it is very true that such an inference attaches in case of a private sale, it has been repeatedly held that it does not arise in case of a [225]*225judicial sale. So too if the purchaser nt a sheriff’s sale agrees with the defendant in the execution that he will convey him the property upon being reimbursed for all the money he has expended, such an agreement is perfectly lawful and is no evidence of fraud. In a case like the present, the evidence must go much further than this. There must be satisfactory evidence from which a rational inference may be drawn, that there ivas a corrupt design and agreement to hinder, delay, or deprive the creditors of the debtor by putting his property out of their reach. There is in this case not a particle of original evidence that such an agreement ever was made. Both the parties, Mead and Crull, were examined, and both testified in the most positive and absolute terms that no agreement or understanding of tliat kind bad ever been made or even talked about between them. Not a single witness testified to any personal knowledge of the fact of such, or of any, agreement between the parties, or of any kind of an arrangement having for its object the exclusion of Crull’s property from his creditors. The undisputed evidence as to the manner in which Mead acquired the judgments prior to his own, the amount of money he paid for them, and the absolute fairness of the sheriff’s sale as appears by the testimony, affirmatively disproves the existence of a preconcerted design to defraud the creditors, so strongly, that nothing less than clearly satisfactory evidence to the contrary should be permitted to defeat a title so acquired. There is no such evidence in this case. The testimony principally relied on in support of this theory is the evidence of certain declarations alleged to have been made by Mead and Crull to the effect that Mead’s purchase ivas made in order to defraud Crull’s creditors. When that testimony is examined and analyzed it is found to be of the weakest and flimsiest character. In reality, there is but one witness who testifies to a clear admission by Mead that there was any understanding or agreement on his part to hold the property so as to keep it from Grail's creditors. That witness described a conversation which occurred at lier own house at Bradford, in the spring of 1880, which was fifteen or more months after Mead had acquired his title at sheriff’s sale. It was Mrs. McKinney, and she was a daughter of Crall’s. She said : “ I spoke to Mr. Mead about his getting father’s property into his hands, and he said he had taken his property to save it for him and to keep off his creditors, and he intended to give father a chance to get his property back by giving liim a chance in an oil well at Summit City.” As all of this, except the expression “ to keep off Ms creditors,” is entirely consistent with an innocent purpose, it might well be questioned whether, allowing for the infirmities of memory and the possible misappre[226]*226Tiension of the meaning of words, it should be held sufficient to deprive a citizen of his title to real estate purchased at a judicial sale, but its authenticity is so strongly impeached as to deprive it of any legal efficacy for that purpose. Not less than five other persons swear that they were present at the time and place when this alleged conversation took place, and every one of them denies that it occurred. They were Darius Mead, David Crull and his wife, and Nelson Crull and his wife. Nelson Crull says he was not present the whole of the time, but his wife savs she was, and no such conversation took place. Mead and David Crull both deny it absolutely and positively, and Mrs. David Crull says she was present all the time, and heard nothing of the kind.

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Bluebook (online)
8 A. 374, 113 Pa. 220, 1886 Pa. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mead-v-conroe-pa-1886.