Meredith v. Thompson

4 Alaska 360
CourtDistrict Court, D. Alaska
DecidedApril 27, 1911
DocketNo. 483 (S. 9)
StatusPublished
Cited by3 cases

This text of 4 Alaska 360 (Meredith v. Thompson) is published on Counsel Stack Legal Research, covering District Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meredith v. Thompson, 4 Alaska 360 (D. Alaska 1911).

Opinion

CUSHMAN, District Judge.

The questions argued by counsel have gone to the bona fides of the sale from. Thompson to Cummings and the right of the plaintiff to maintain the suit in any event.

While under section 1043, Carter’s Code of Alaska, the fraud presumed from want of change in possession is confined to personal property, yet in this case, where both real and personal property were transferred by one instrument, which property constituted the entire estate of the debtor, and there was no actual change of possession of any of the property un[366]*366til long subsequent, this taken in connection with the various circumstances above pointed out is sufficient to shift the burden of evidence as to the bona fides of the sale from the plaintiff to the defendants. Many circumstances in this case may he mentioned of the class ordinarily denominated badges of fraud. Among them are close and intimate relations existing between the parties to the transaction claimed to be fraudulent; suit pending against the grantor approximately for an amount equal to the value of the property; insolvency of the grantor (the value of all his property was at the time of transfer about $1,500; his debts known to grantee other than that involved in the pending suit amounted to $2,800); unusual delay in recording conveyance; a sale of all his property of mixed character to one grantee; that at the time of purchase the property was unknown to the grantees; that it was bought without an attempt to examine or request by the grantee for time to examine; that grantee did not take possession, but that the grantor continued in possession and continued to show interest in and care for the property after the transfer; that the grantee did not exhibit ordinary interest in or attention to it after the transfer; that the instrument of transfer was left with or delivered to the grantor; that it was hurriedly recorded by the grantor at an unusual time, to wit, 8:30 Sunday night; that no vouchers or documentary evidence of any kind to support the transaction are introduced or offered; that so few of the acts of the parties to the transaction were done in the ordinary manner; that, without an examination of the property, the grantee sold back to the grantor the saloon for $400, which grantor was immediately able to mortgage for $1,100.

It is believed that these, with other unusual circumstances, warrant the conclusion that the transfer was made to Cummings to hinder, delay, and defraud Thompson’s creditor, the plaintiff; that Cummings knew of the fraudulent purpose and was a party to it. He admits that immediately prior to the transfer he knew that defendant Thompson intended leaving the territory permanently. He was acquiring all of Thompson’s property, and he knew Thompson owed twice as much as it was worth, outside of the claim on which suit was pending. [367]*367It is no answer to say that he did not think there would be a recovery in that suit.

Besides this admitted knowledge prior to the transfer on his part, many of the circumstances mentioned above are of a character to disclose the prior purpose. Defendants have undertaken to explain many of the unusual circumstances, but their number is too great, and the explanations do not satisfy. It is concluded that there was no valuable consideration for the transfer.

It is argued hy defendants that plaintiff cannot recover because he has not brought himself into such privity with the property as to entitle him to sue to set aside the transfer, no matter how fraudulent it might be. Defendants are right to this extent; under our law there, is no lien upon personal property until the actual levy of the writ of attachment or execution, which must be made by taking into custody, from which time the attaching plaintiff is deemed a purchaser in good faith for value. Sections 140, 141, pt. 4, Carter’s Codes. This lien he must have before he can maintain a suit to void the transfer.

“And since a judgment does not operate as a lien upon personalty, if the creditor seeks aid in regard to the personal estate of the debtor, be must show, not only a judgment, but also an execution givin upon the debtor’s goods and chattels.” 20 Cyc. p. 696, and citations, note 15.

Under the Alaskan Code, a judgment is made a general lien by statute upon all of the defendant’s real estate, and a levy is not necessary to create a lien. Section 260, pt. 4, Carter’s Codes.

“Under the statutes of many of the states, the lien of a judgment attaches to the real estate of a debtor when the judgment or a transcript of it is recorded or filed in the proper office of the county where the land is situated. Where this is the case, a creditor may file bis bill to set aside a fraudulent conveyance as soon as be has obtained a judgment without issuing execution thereon, if the action is brought for the purpose of making bis lien more available and efficient and in aid of an execution thereafter to be issued.” 20 Cyc. p. 697.
“Where a creditor is required to cause execution to be issued upon his judgment before suing to set aside the conveyance, whether be must cause the execution to be actually levied upon the subject [368]*368of the conveyance will usually be found to depend upon whether a levy is necessary to create a lien. In some states the statute provides that a levy must be made to preserve the lien of the judgment, if the property sought to be reached is capable of being levied on. But where a specific lien upon the real estate of the debtor has been acquired by the filing of a judgment or the issuance of execution thereon, and the action is brought in aid of the lien, a levy of the execution is not required. And a levy is not necessary if it would be of no practical utility.” 20 Cye. p. 698.

Subdivision 4 of section 274, pt. 4, Carter’s Codes, provides:

“Property (real) shall be levied on (by execution after judgment) in like manner and with like effect as similar property is attached, as provided in sections 140, 141, and 143, omitting the filing of the certificate provided for in section 142.”

From the above quotation, by comparing its provisions with sections 140 and 141, supra, it is apparent that a levy after judgment is not necessary or contemplated for the preservation of the judgment lien.

“When-the debtor has clouded the title to real property by an incumbrance or fraudulent transfer of it, the judgment creditor may proceed at once to have it removed. He obtains a lien upon the land when he recovers his judgment, and he has the right to stop there and proceed to have the title freed from its obscurity. The suit in that case is to aid his remedy at law, and he is not required even to issue an execution. 3 Pomeroy’s Eq. Jur. § 1415, note 4; Mohawk Bank v. Atwater, 2 Paige (N. Y.) 54; Parshall v. Tillou, 13 How. Prac. (N. Y.) 7.” Multnomah Street Ry. Co. v. Harris, 13 Or. 198, at 200, 9 Pac. 402, at 403.
“Counsel for defendant insist that plaintiffs have no standing in equity without first bringing themselves in privity with the property sought to be reached by this suit by attachment or judgment lien, but we think the authorities he cites in support of his position are inapplicable here. * * * In Fleischner v. Bank of McMinnville, 36 Or. 553, at 562, 60 Pac. 603, Mr. Justice Dean cites this case (Dawson v. Coffey, 12 Or. 513, at 519, 8 Pac.

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Bluebook (online)
4 Alaska 360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meredith-v-thompson-akd-1911.