Probert v. McDonald

51 N.W. 212, 2 S.D. 495, 1892 S.D. LEXIS 13
CourtSouth Dakota Supreme Court
DecidedFebruary 10, 1892
StatusPublished
Cited by3 cases

This text of 51 N.W. 212 (Probert v. McDonald) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Probert v. McDonald, 51 N.W. 212, 2 S.D. 495, 1892 S.D. LEXIS 13 (S.D. 1892).

Opinion

Kellam, P. J.

In this case the following facts seem to be undisputed: On and before September 12, 1889, one E. B. Orr was the owner of a lot in Wessington Springs, S. D. On that day he conveyed the same by warranty deed to appellant, the consideration named in the deed being $550. Prior to this, and on the 20th day of August, one Woodburn had sued out a warrant of attachment in an action against Orr, and had levied it upon this, lot and livery barn thereon. On the 12th day of September the attachment was dissolved, and thereafter, on the same day, Orr deeded the property as above stated, to appellant, Probert. October 24th, Woodburn obtained judgment against Orr, upon which execution was issued and levied upon this lot October 31st. It was advertised for sale by respondent, who was the sheriffjof Jerauld county, wherein such property was situated. This action was brought by appellant against respondent, as sheriff, to perpetually enjoin such 'sale. The respondent resists, principally on the ground that the conveyance from Orr to appellant, Probert, was void, because made with intent to defraud his creditor Woodburn. The allegation of the answer in this respect was general: .That said transfer was made by Orr with intent to defraud his creditors, and especially to defraud his creditor Woodburn, and that appellant, Probert, well knew the motive, and was a party to it, and that the transfer was without consideration. The court found for defendant, and adjudged the conveyance void as against the Woodburn judgment, denying plaintiff the injunction which he sought. From this judgment plaintiff appeals. At the opening of the trial the plaintiff (appellant) objected to the introduction of any evidence under the answer, on the ground that it did not state facts constituting a defense, and the overruling of this objection is the first error assigned. Appellant contends that the answer is insufficient, in that it states no facts which tend to show or which would support an inference of fraud,- and that it was also insufficient in not alleging that Orr, the grantor and judgment debtor, had no other prop[501]*501erty subject to execution, thus making it necessary to proceed against this lot to collect the judgment.

Upon whom rests the burden of proof under the pleadings in this case is not before us, as the parties have affirmatively agreed that it is with the defendant; and it is probobly true, as claimed by appellant, that the sufficiency of the answer as to the allegation of the intent with which the conveyance was made must be tested by the same rule which would determine the sufficiency of a similar allegation in á complaint. Bliss, Code PL § 339, and cases cited. The first question, then, would seem to be, is the allegation that Orr made the transfer with intent to defraud his creditors, and that appellant well knew of his intent, and was a party to the same, sufficient to let in proof of such alleged fraudulent intent? We think the books afford more judicial expressions against than in favor of the sufficiency of such an allegation. Wait, Fraud. Conv. § 141, says: “A mere general averment that a deed was fraudulent, or that it was made with intent to hinder, delay, or defraud creditors, has been regarded as an insufficient method of pleading,and from states having statutes similar to ours sufficient authority may be cited to justify the text; but we are unable to see how, under the statute referred to, a fuller or more elaborate allegation of the fraudulent intent, or how it is to be made to appear, can be required, where the object of the pleading is to put a case within the terms and under the protection of such statute. Section 4656, Comp. Laws, is as follows: ‘ ‘Every transfer of property * * * made with intent to delay or defraud any creditor * * * of his demands is void,” etc. This is followed by Section 4659, which says: ‘ ‘In all cases arising * * * under the provisions of this title, * * * the question of fraudulent intent is one of fact, and not of law, etc. The statute declares that in such case the intent is not a conclusion of law, but a matter of fact. If it were a conclusion of law, it could not be so pleaded; but where the statute definitely fixes its character as a fact, it may be pleaded as a fact. Fraud itself is not a fact, and is never so defined, and so, in pleading fraud, it is not sufficient to plead it by name, simply, [502]*502or to allege against a party that he committed fraud, but the facts and circumstances must be pleaded from which fraud, as a conclusion or judgment, would be inferred. The statute says that if a conveyance be made, and there exist, in connection with the making of such conveyance, a certain fact, towit, an intent to delay or defraud creditors, such conveyance is void. Now a complaint or an answer that alleges just these facts to exist meets all the requirements and conditions of the statute. While the fraudulent intent is usually proved by suggestive facts and circumstances leading to the ultimate fact of intent, it is not necessarily so. It may, in most of the states, be proved directly, as any other fact. The. grantor himself may answer as to his intent. Seymour v. Wilson, 14 N. Y. 567; Campbell v. Holland, (Neb.) 35 N. W. Rep. 871; Gardom v. Woodward, (Kan.) 25 Pac. Rep. 199; Thacher v. Phinney, 7 Allen, 146; Frost v. Rosecrans, 66 Iowa, 405, 23 N. W. Rep. 895. In Sweeney v. Conley, 71 Tex. 543, 9 S. W. Rep. 548, it is held otherwise, however, and the reason given is significant in this discussion. The court says: ‘ Tt has been held repeatedly by this court that the sellor or grantor in a transaction alleged to be fraudulent will not be permitted to testify that he made the sale or conveyance in good faith, or that he did not intend to defraud his creditors. The reason for the exclusion of such testimony is that the question of fraudulent intent, in such cases, is a mixed one of law and fact, and that to say that the intent was not fraudulent, or that the transaction was made in good faith, is to state a legal conclusion.” The argument of this opinion plainly is that if the intent were simply a question of fact, and not one of mixed law and fact, it might be testified to as a fact; but with us, the controlling law peremptorily fixes it as a fact, .and nothing else, and under such a rule it should be treated as a fact, both in evidence and in pleading. It would be difficult to give any good reason why,- in such case, a party should be required to plead more than he is required to prove, but suppose in an action to avoid a conveyance because made with such fraudulent intent, the only evidence ujoon the question of intent is that of the grantor and grantee themselves, [503]*503who testify that, in making the conveyance, they did intend to delay and defraud the grantor’s creditors, may not the ptaintiff safely stop there? If a witness may testify directly to the existence or non-existence of such intent as a fact, may not a party plead it as a fact? Or suppose a complaint in such case allege that the conveyance was made, as in the words of the statute, with intent to defraud creditors, and the answer does not deny such allegation of intent, and so admits it, is not such allegation of fraudulent intent to be taken as true? But this would not be so if, as appellant contends, the intent were not thus well pleaded. The rule of the Code is that the complaint ‘ ‘must contain a statement of the facts constituting the cause of action,” — not evidentiary facts, but the ultimate facts; but the fact that which constitutes the cause of action is the fact which invalidates and destroys the conveyance, and that fact is, by the express words of the statute, ‘ ‘the intent to delay or defraud creditors.

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Bluebook (online)
51 N.W. 212, 2 S.D. 495, 1892 S.D. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/probert-v-mcdonald-sd-1892.