Pomeroy v. Bailey

43 N.H. 118
CourtSupreme Court of New Hampshire
DecidedJuly 15, 1861
StatusPublished

This text of 43 N.H. 118 (Pomeroy v. Bailey) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pomeroy v. Bailey, 43 N.H. 118 (N.H. 1861).

Opinion

Bellows, J.

Various questions arise upon the case, and one of the most important has respect to the instructions given to the jury.

[120]*120The plaintiff asked the court to charge the jury in substance, that, if his claim was legal and valid, and the conveyance to Hazel-tine was without sufficient consideration, or there was a secret trust, or it was made to prevent an attachment on any claim, whether doubtful or not, then such conveyance was fraudulent and void as to the plaintiff, whatever may have been the amount of his claim.

Assuming the instructions prayed for to be substantially correct and applicable to the case, as it stood before the jury, let us see what instructions were actually given, notwithstanding the refusal, in terms, to give what were asked for. The court did instruct the jury, that if the plaintiff’s claim was legal and valid, and a secret trust was reserved, or the purpose was to prevent an attachment upon some claim, whether doubtful or not, then such conveyance was fraudulent and void as to such claim of the plaintiff.

So far, we think, the instructions accord with the prayer of the plaintiff’s counsel, and are not open to objection. As to the further request, in respect to the want of sufficient consideration, the court instructed the j ury that a voluntary conveyance as a gift, or in consideration of blood and affection, the effect of which was to hinder and defraud creditors, would be void as against them ; but when made as a gift or the consideration of blood, by a person not indebted or not in embarrassed circumstances, and when large and ample means were still left in the hands of the grantor, open to be levied upon, known to the creditor, and amply sufficient to satisfy his debt and all other debts of the grantor, the conveyance would not be void, and that the creditor would not be at liberty to pass by the property still retained, and levy upon that so conveyed.

There was no error, we think, in declining to charge‘the jury, in the unqualified form, that the conveyance was void if without sufficient consideration, inasmuch as that naked statement would furnish no guide to the jury without explaining what would be “ a sufficient consideration,” and it would, in fact, be quite likely to mislead them.

The court undertook to explain what would be a sufficient consideration under the circumstances stated, and now the question is, whether there was error in that part of the charge.

The substance of it was that a conveyance of land as a gift, or in consideration of blood, by a person not indebted or not in embarrassed circumstances, but having ample means to pay all the grant- or’s debts, would be good against creditors. If by this it was intended to lay down the broad doctrine that such a conveyance would be good, even if made with the intent to defraud creditors, we think it would be erroneous; because the conveyance must not only be upon good consideration, but bond fide. If not in good faith, but with intent to defeat creditors, it would be void as to subsequent creditors, even though existing creditors had all obtained payment out of property remaining after such conveyance. Was this broad doctrine the one intended ? or was the language likely to be so understood, and so to mislead the jury ? Taken in connection with the preceding part of the charge, to the effect that the conveyance would be void if intended to prevent an attachment, upon some claim doubtful or otherwise, we [121]*121think the court could not have intended to assert the broad doctrine alluded to. Nor do we feel satisfied that the jury were likely to be misled by it, especially when they were distinctly told that all conveyances, made with the intention of delaying and defrauding creditors, were void, as against both existing and subsequent creditors.

The question, then, is, were the instructions correct as applied to a conveyance for the consideration of blood ? To be sure, that consideration is not expressed in the deed, but, under the statement used here of “ $500 and other good causes and considerations,” it is competent to aver and prove the consideration of blood ; and this is not inconsistent with the deed, but stands with it. Such is the doctrine of Mildmay’s Case, 1 Co. 175; Bedell's Case, 7 Co. 40; 1 Phill. Ev. 549; 1 Greenl. Ev., sec. 304; Morse v. Shattuck, 4 N. H. 229; Pritchard v. Brown, 4 N. H. 397; Buffum v. Green, 5 N. H. 71; Graves v. Ticknor, 29 N. H. 144. Here the evidence reported tends to show such a consideration, and it is assumed by the course of the trial to he the defendant’s case. The inquiry then is, whether a conveyance made upon such consideration, by a person not in debt or not in embarrassed circumstances, but leaving in the grantor’s hands large and ample means, open to be levied upon, known to the creditor, and amply sufficient to pay all his debts, is void as against creditors, in a case where no bad faith is shown. In Reade v. Livingstone, 3 Johns. Ch. 481, Mr. Chancellor Kent, upon great consideration, lays down the law to be, that if the party be indebted at the time of the voluntary settlement, it is presumed to be fraudulent in respect to such debts, and no circumstance will permit those debts to be affected by the settlement, or repel the legal presumption of fraud. And he holds further, that this presumption does not depend upon the amount of the debts or the extent of the property in settlement, or the circumstances of the party. To allow any distinction, founded upon such circumstances, would, in his judgment, be embarrassing if not dangerous to the rights of the creditor, and prove an inlet to fraud, and, therefore, no such settlement should be allowed to stand in the way of existing debts.

These views were expressed by Chancellor Kent, as the fair result of the early English decisions ; but it will be observed that most of those cited by him were suits in chancery, where the court had power to determine questions of fact as well as law, and, therefore, might find the fraud from the evidence, when, in a court of law, the finding of a jury would be essential.

It will be observed, also, that in none of these decisions is it held that the fraudulent intent will be conclusively presumed in all cases, however trifling the indebtedness, or inconsiderable the amount of property conveyed; but the presumption is applied to conveyances by parties “ in debt ” or “ indebted ” at the time, in general terms, which, although broad enough to embrace indebtedness of the most trifling amount, by a person of ample means, have hardly the full weight of an authority expressly to the point. See, also, 1 Story’s Eq., sec. 363, n. Indeed, it might be urged very plausibly that these terms were used in the sense of indebtedness to a substantial amount, such as to cause embarrassment, or to such an extent com[122]*122pared with the debtor’s means, that the conveyance in question might reasonably be deemed to impair the security for the debts. In such cases a voluntary settlement might well be regarded as wanting in good faith, and, therefore, void; but no such charge could ordinarily be made where the indebtedness was trifling and the means retained were ample ; nor do we find among the authorities cited by Chancellor Kent a case of this character. The doctrine of Reade v. Livingstone has been followed to some extent by courts in this country, and the cases are referred to in 2 Kent’s Com. 441, 442, and notes.

On the other hand, the doctrine of Reade v.

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Bluebook (online)
43 N.H. 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pomeroy-v-bailey-nh-1861.