National Bank of Greensboro v. Gilmer

116 N.C. 684
CourtSupreme Court of North Carolina
DecidedFebruary 15, 1895
StatusPublished
Cited by26 cases

This text of 116 N.C. 684 (National Bank of Greensboro v. Gilmer) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Bank of Greensboro v. Gilmer, 116 N.C. 684 (N.C. 1895).

Opinion

Avbey, J.:

The exception to the Judge’s remarks to the jury are without merit. Almost the same expressions were used in Osborne v. Wilkes, 108 N. C., 651, and were found unobjectionable on appeal, citing Hannon v. Grizzard, 89 N. C., 115. Nor was there error in continuing the Term to conclude the trial or to receive the verdict. This is authorized as to felonies by The Code, Sec. 1229 (State v. Adair, 66 N. C., 298) and was extended to all other cases by Chapter 226, Acts 1893, except that it would [701]*701not apply to civil cases begun after Tliursday of tbe last week of tbe Term. Tbe trial of tbis action began on "Wednesday. At common law, when tbe jury in a capital case did not agree during tbe Term, they were carried to tbe next Court where of course tbe business went on during their deliberations. 2 Hale P. C., 297; State v. Bullock, 63 N. C., 570. Certainly it could in no wise prejudice tbe parties that while tbe jury were out considering their ver.dict, tbe Judge opened and conducted another Term at the same place. It could in no wise have benefitted-the parties to have bad tbe Judge idle, nor could it be expected that tbe public business should thus, without cause, have been suspended. The Court erred in bolding that the evidence offered to establish a trust in favor of tbe son’s was sufficient to be submitted to tbe jury. Tbe relation of debtor and creditor bad existed between J. E. Gilmer and wife many years prior to tbe purchase by him of tbe land in 1890 for the firm of which be was tbe senior member. He bought the land with the firm’s money and constructed the building thereon also with funds of tbe firm. He subsequently, in 1891, bought bis partner out and’took title to himself without any directions or instructions from his wife, who was not consulted. In 1892 he executed more notes to his wife and entered credits on those then existing. At the death of his wife these notes became the property of J. E. Gilmer. Code, Sec. 1479. If there was any agreement between him and his wife that he, being indebted to her, was to buy a- lot and build a factory, charging the cost on her notes, the property to be held in trust for his sons, it is the evidence of himself and partner that in fact the lot was bought and the factory built with the funds of the firm. The verbal agreement with his wife was executory, and the notes becoming the property of J. E. Gilmer by his wife’s death, the deed thereafter to his sons was without consider[702]*702ation, and void as to creditors. The fourth prayer of instructions asked by the plaintiff should therefore have been given, and the instruction given in lieu thereof was erroneous, being based upon a hypothetical. state of facts not appearing in the evidence.

But if the testimony offered for the plaintiffs was believed by the jury, there were a number of badges of fraud which can scarcely be accurately described except by so denominating them, though they are sometimes designated as circumstances calculated to excite suspicion and challenge scrutiny in order to ascertain whether a conveyance was executed with fraudulent intent. Among the evidences of fraud relied upon by the plaintiffs were the following : 1. That Gilmer owed a debt when he sold the goods; 2. That he sold on a credit of 6, 12, 18 and 24 months; 3. That the purchaser was not worth over $500; 4. The, purchaser gave his note without security ; 5. Gilmer was embarrassed with debt; 6. Though not then insolvent, his embarrassment soon after resulted in insolvency; 7. The sale was to a son.

In Beasly v. Bray, 98 N. C., 266, the Court held that an absolute conveyance by an insolvent debtor to an insolvent vendee, who was not fixed with a fraudulent intent, even upon a long credit and without security, was merely evidence of fraud to be considered by the jury. It will be observed that in Beasley’s case it was admitted that the debtor was not only embarrassed with debt but was actually insolvent. If in this case it had been admitted that the elder Gilmer was insolvent and conveyed to a son for an insufficient consideration, such a combination of circumstances would have raised a presumption of fraud. But father and son may deal with each other in good faith just as others not so related may do.” Banking Co. v. Whitaker, 110 N. C., 345.

[703]*703If the conveyance to the son by an embarrassed father had been made, when only mere relatives were present, and explanation had been withheld, these circumstances would have raised a presumption which could be rebutted in no other way than by a full disclosure. Helms v. Green, 105 N. C., 251. But in Bank v. Bridgers, 114 N. C., 383, the Coiirt said : “ The existence of near relationship between the parties to a suspicious transaction often constitutes additional evidence of fraud for the jury,” but that it was error to instruct the jury that the existence of such relationship was prima faeie evidence of fraud.

Had the conveyance been made by an insolvent husband to his wife, the burden would have rested upon those who claimed under it to rebut the presumption of fraud raised by those circumstances. Peeler v. Peeler, 109 N. C., 628; Browne v. Mitchell, 102 N. C., 347.

This Court has recently held that mere inadequacy of price, however gross and whether considered alone or in connection with other suspicious badges, was only a circumstance tending to prove fraud. Berry v. Hall, 105 N. C., 154; Orrender v. Chaffin, 109 N. C., 422. In Berry v. Hall, supra, following Ferrall v. Broadway, 95 N. C., 551, the Court held that a trial Judge “was not at liberty to say to the jury that any fact proved or admitted, that does not in law raise a presumption of the truth of the allegation of fraud, is a strong circumstance tending to establish it.” In the same opinion, referring to the reasons assigned by the Judges when acting as chancellors and passing upon the facts, the Court said: “ The reasons assigned in these opinions for giving more or less weight- to any testimony were not intended to be, and cannot, without invading the province of the jury by violating The Code, Section 413, be adopted as rules to be laid down in the charge of the Court for their guidance.”

[704]*704In Stoneberger v. Jeffries, decided at this term (115 N. C., 78) the Court has held that “the burden of proof is sometimes shifted in the progress of the trial, but it is only by the introduction of testimony which the law has declared to b& prima faoie proof of fraud, but which may be rebutted by evidence deemed by the jury sufficient to explain such suspicious circumstances, and thereby overcome the artificial ’weight which the law has attached to them, as evidence. McLeod v. Bullard, 84 N. C., 515; Lee v. Pearce, 68 N. C., 77.” It thus appears that in recent cases every single circumstance admitted in this case has been declared only a badge of fraud of itself, or where it has been associated with' others of the number, the same conclusion has been reached. The application of the abstract proposition (in Brown v.

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Bluebook (online)
116 N.C. 684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-bank-of-greensboro-v-gilmer-nc-1895.