Ogden State Bank v. Barker

40 P. 765, 12 Utah 13, 40 P.R. 765, 1895 Utah LEXIS 2
CourtUtah Supreme Court
DecidedJune 3, 1895
DocketNo. 538
StatusPublished
Cited by11 cases

This text of 40 P. 765 (Ogden State Bank v. Barker) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ogden State Bank v. Barker, 40 P. 765, 12 Utah 13, 40 P.R. 765, 1895 Utah LEXIS 2 (Utah 1895).

Opinion

BaRTCH, J.:

This is an action in the-nature of a creditors’ bill, brought by the plaintiff, who is a judgment creditor of William Barker, one of the defendants, to set aside and declare null and void a certain deed by which William Barker and his wife Mary Ann Barker, conveyed certain lands to their [18]*18sons, the defendants, Franklin J. Barker and Leroy Barker, on the ground that said conveyance was fraudulently made for the purpose of hindering and delaying the plaintiff in collecting its judgment. The case was referred to a master in chancery to take and report the testimony. A return of the evidence having been made, the court, after considering the same and hearing arguments of counsel, entered judgment thereon setting aside and canceling the deed, and ordered the property thereby conveyed to be sold to satisfy the judgment of the plaintiff. A motion for a new trial was made and overruled, and thereupon the defendants appealed both from the judgment and order overruling the motion for a new trial, assigning various errors.

It is alleged in the complaint, substantially, that on September 17, 1892, the plaintiff obtained a judgment in the court of the Fourth Judicial District against the defendant William Barker and one James Iverson for the sum of $4,003.40, in a foreclosure suit; that on October 10, 1892, the mortgaged premises were sold to satify said judgment, and $1,700 realized thereon, and on October 12, 1892, a deficiency judgment was docketed, in the sum of $2,375.55; that thereafter,on February 10, 1893, a writ of execution was issued against the property of said Barker and Iverson, which was returned nulla Iona; that on April 20, 1892, and after he had contracted the debt upon which the judgment was recovered, William Barker and his wife conveyed the premises described in the deed to their* sons; that they so conveyed the same without consideration, for the purpose of hindering, delaying, and obstructing the plaintiff in 'collecting its judgment, all parties knowing that the deed was fraudulent; that said William Barker, after the conveyance, remained in possession of the land; that said Barker and Iverson are insolvent, and plaintiff is without remedy at law; and [19]*19that the premises, unincumbered, are worth about $3,000 but, if sold with said clouds thereon, would not satisfy the judgment. The defendants, in substance, deny that the grantors remained in possession since the conveyance or that there was no consideration for the deed, or that the conveyance was made to cheat, defraud, hinder, or delay plaintiff or other creditors, or that the premises are worth more than $1,250, or that William Barker and James Iverson are, or either of them is insolvent, or that plaintiff is without a remedy at law. It will be observed that neither the corporate existence of the plaintiff, nor its judgment against the defendant William Barker, valid and unsatisfied, is denied. Nor is the issuance of the execution against the property of Barker and Iverson, or the return nulla bona, denied. Nor it it denied that defendants William Barker and wife were the owners in fee of the land, or that the conveyance to their sons was made after the debt, which was merged in the .judgment, was •contracted. All the facts not denied are admitted to be true, and upon the trial the court found all the issues raised in the pleadings, in favor of the plaintiff, as appears from the findings of facts. Under the pleadings and facts thus shown, -by the record, counsel for the appellants insist that the deed in question was made in good faith, and for a valuable consideration, to pay an honest obligation between parents and children, which they •contend, arose under a contract entered into between the parents and children Jong before any debt to this plaintiff was contracted or assumed by William Barker.

The first question to be considered is whether the conveyance was made for a valuable consideration, in good faith, and not merely to defraud, hinder, or delay the creditors of William Barker. The effect of the consideration expressed in a deed is to estop the grantor from denying that the deed was executed without a considera[20]*20tion, and to .prevent its operation as a resulting trust in the grantor. When a consideration, though merely nominal, is expressed, whether founded thereon or not, the deed may be valid and operative, as between the parties; but, when assailed by the creditors of the grantor, it may be void as to them, because not founded on a valuable consideration. Such would be the effect in a case where the demands of the creditors were in existence at the time when .the deed was executed, if the operation of the deed would put it beyond the power of the grantor to meet his liabilities; and in such case, if the creditors of the grantor attack the conveyance as fraudulent and made to hinder or delay them in the collection of their claims, the burden of proof is upon the grantee, or those claiming under him, to show such a consideration, as will release the conveyance from such imputation, and for such purpose the fact that a consideration is recited in the conveyance is not evidence as against creditors whose claims accrued prior‘to its execution, for such recital is the mere declaration of the grantor. The consideration clause in a deed does not prove that the deed was founded on a valuable consideration, or on any consideration; Hence, where the consideration expressed is one dollar,-it may be shown that a-larger sum was actually paid. So, where a larger sum is expressed, it may be shown that a less sum. was actually paid. But an entirely different consideration from that, expressed cannot be shown by parol evidence, when the deed is assailed by creditors, because this would be to vary the terms of a contract, the stipulations of which were reduced to writing by the parties. In the absence of mistake or fraud, the written instrument speaks for iiself, and, when attacked by creditors, its stipulations are conclusive as to the grantor and grantee; and the instrument cannot be supported by falsifying, its recitals, because they must be presumed to have -been made and accepted deliberately/. [21]*21and to express the intention of the parties thereto. The law presumes that every man intends the necessary and natural consequences of his own acts, and where the proximate and natural results of a debtor’s acts are to hinder, •delay, or defraud creditors, it will be presumed that he intended his acts to produce such results. Snyder v. Free (Mo. Sup.), 21 S. W. 847; Belden v. Seymour, 8 Conn. 304; Houstan v. Blackman, 66 Ala. 559; 8 Am. & Eng. Enc. Law, p. 753; Goodspeed v. Fuller, 46 Me. 141; Lawson v. Funk, 108 Ill. 502; Maigley v. Hauer, 7 Johns. 341; Grout v. Townsend, 2 Hill, 554; Coleman v. Burr, 93 N. Y. 17.

In the case at bar the consideration expressed in the deed is one dollar, and there is no other consideration mentioned or referred to in the consideration clause. The •deed having been assailed by a creditor of the grantor on the ground that it was .fraudulent and made to hinder and delay such creditor in collecting his claims, its recitals were conclusive, and at the trial neither the grantor nor the grantee were entitled to show any other considera-tion than that contained in the instrument. Potter v. Gracie, 58 Ala. 303.

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Ogden State Bank v. Barker
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Cite This Page — Counsel Stack

Bluebook (online)
40 P. 765, 12 Utah 13, 40 P.R. 765, 1895 Utah LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ogden-state-bank-v-barker-utah-1895.