Nathan v. Sands

72 N.W. 1030, 52 Neb. 660, 1897 Neb. LEXIS 141
CourtNebraska Supreme Court
DecidedNovember 18, 1897
DocketNo. 7490
StatusPublished
Cited by13 cases

This text of 72 N.W. 1030 (Nathan v. Sands) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nathan v. Sands, 72 N.W. 1030, 52 Neb. 660, 1897 Neb. LEXIS 141 (Neb. 1897).

Opinion

Eyan, O.

This action was brought in the district court of Buffalo county by numerous judgment creditors of Aaron Sands, against the said Aaron Sands, Eoss Gamble, and Allie Sands as defendants. It was alleged in the petition that from March 1, 1890, until' November 15, 1891, Aaron Sands had been engaged in business in Kearney as a retail dealer in ready-made clothing, furnishing goods, boots, shoes, etc.; that in pursuance of a fraudulent conspiracy, to which all the defendants were parties', the said Aaron Sands, upon the faith of a credit'secured largely by the recommendation of Eoss Gamble, president and man[661]*661aging officer of the Buffalo County National Bank, accumulated a stock of goods of the value of $40,000; that while the accumulation was progressing there existed an understanding between Ross Gamble and Aaron Sands that when sufficient goods had been obtained, the entire stock was to be fraudulently transferred by the said Aaron Sands to Ross Gamble, and that it was with the. above fraudulent purpose in view that the merchandise was purchased by Sands from the plaintiffs, whereby the latter were ultimately compelled to become judgment creditors of the said Aaron Sands. It was further alleged that the consummation of the above described fraudulent design was the pretended sale of the accumulated stock of goods of Aaron Sands to Ross Gamble, November 14, 1891. It was charged that, at the date last named, Aaron Sands was not indebted to the Buffalo County National Bank or to Ross Gamble or both in a sum in excess of $8,000; that the recited consideration of the bill of sale evidencing the above transfer was $29,000, of which amount $6,500 was pretended to be due as clerk hire from Aaron Sands to Allie Sands, and that a simulated payment was made of this amount by Ross Gamble giving his note to Allie Sands for that amount, which note was soon afterwards returned to Gamble, and that in fact nothing was paid except the sum not exceeding $8,000 above referred to. The plaintiffs in their petition furthermore alleged that no change of possession of the stock of goods followed the pretended transfer thereof, and that upon levies being made on said stock to satisfy the debts of the respective plaintiffs and other creditors of Sands, Ross Gamble had instituted some thirty or forty replevin suits by virtue of which he had gained and still held possession of goods which had been owned by Aaron Sands, and had been selling and disposing of the same, and for this purpose had replenished the stock as the requirements of trade demanded, and that by the means above indicated the Buffalo County National Bank and Ross Gamble had been paid a sum greatly in excess of that due [662]*662them, while the plaintiffs bad been able to obtain nothing in satisfaction of the several amounts due them. The prayer of tbe petition in effect was that tbe transfer of tbe stock of goods from Aaron Sands to Ross Gamble might be declared fraudulent, that said Gamble might be required to account for tbe value of said stock and pay tbe judgments due plaintiffs; and to prevent a multiplicity of suits at law, and to save expense, that all tbe suits at law of said Gamble relating to said property and tbe proceeds thereof might be stayed until a full bearing could be bad under tbe allegations of the petition, and for general equitable relief. The defendants answered separately, admitting such averments of tbe petition as were consistent with a Iona fide transfer of tbe property to Gamble, and denying all such as were otherwise. On the trial of tbe issues there was a general finding in favor of the plaintiffs against tbe defendants, and accordingly a judgment was rendered against Ross Gamble in favor of tbe plaintiffs in gross in tbe sum of $16,945,'to draw interest at seven per cent per annum. For tbe reversal of this judgment, which carries all tbe costs of tbe action, Ross Gamble has appealed to this court.

The district court found that tbe value of tbe property described in tbe bill of sale at tbe date of its execution, November 14, 1891, was $26,000, and that tbe aggregate amount of tbe sums due from Aaron Sands to the plaintiffs at tbe date of tbe decree, July 3,1894, was $21,147.69. There was also a finding that Gamble, as part of tbe consideration for tbe transfer of tbe stock of goods to him, paid to tbe Buffalo County National Bank tbe sum of $10,100 as a bona fide debt at tbe time owing by Aaron Sands to said bank, and cancelled a bona fide debt at that time due from Sands to tbe bank of the amount of $663. As tbe interest on tbe amounts due from Sands to plaintiffs seems to have been included in tbe judgment against Gamble we cannot, without a full computation, make an exact comparison, but in general terms it will answer our purpose to say that tbe amount of that judgment, [663]*663$16,945, added to $10,100 and $663 paid and discharged by Gamble, is $27,708, while the finding of the value of the goods, as it was on November 19, 1891, was $26,000. These figures suggest the basis on which probably Gamble’s liability was declared. In other words, he seems to have been charged with the value of the stock as it was on November 19,1891, and credited what he had- paid to the bank, and for the balance a judgment seems to have been rendered against him in favor of the plaintiffs in this case. At any rate we are relieved of considering any representations made to procure a credit to be extended to Aaron Sands, for the reason that the only letters introduced in evidence which had that tendency were written by the cashier of the Buffalo County National Bank, and not by Ross Gamble, and there is no pretense of any other representation. Since the finding was that there was due the Buffalo County National Bank the sum of $10,100 as a Iona fide indebtedness, we are not required to review the evidence introduced on that proposition, for, of course, Ross Gamble, the sole appellant, does not question the correctness of this finding. It may be conceded, as claimed by the appellees, that as between the cousins, Aaron Sands and Allie Sands, a fictitious claim for clerk-hire due the latter from the former had been trumped up, and that the story of Allie Sands as to carrying in his inside vest pocket $6,500 in currency for a period of about six months was a pure fabrication, as was also the manner in which he testified he loaned it. This alone was not sufficient to justify the judgment which was rendered against Gamble, for it was requisite, to have this effect, that he should have obtained the goods with knowledge, actual or constructive, of the proposed fraud, or there must have been a want of consideration. (Farrington v. Stone, 35 Neb., 456; Bank of Commerce v. Schlotfeldt, 40 Neb., 212.) For the purpose of showing the facts tending to disclose a fraudulent purpose on the part of all parties concerned in the transfer to Ross Gamble, the plaintiffs called and used as their own witnesses the said Gamble, Aaron Sands, [664]*664and Allie Sands. In Blackwell v. Wright, 27 Neb., 269, the principle was recognized that a person may not impeach, the character of his own witness, and that having called Mm is eqMvalent to a recommendation that he is entitled to belief which cannot be contradicted. The application of this rule eliminates from this case the attempts to show that transactions actually took place which Mr. Gamble denied, when the sole effect of the pi'oposed proof was to show that Mr. Gamble was not worthy of belief. .

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Cite This Page — Counsel Stack

Bluebook (online)
72 N.W. 1030, 52 Neb. 660, 1897 Neb. LEXIS 141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nathan-v-sands-neb-1897.