Reynolds v. Vilas

8 Wis. 471
CourtWisconsin Supreme Court
DecidedJune 15, 1859
StatusPublished
Cited by4 cases

This text of 8 Wis. 471 (Reynolds v. Vilas) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reynolds v. Vilas, 8 Wis. 471 (Wis. 1859).

Opinion

[478]*478 By the Court,

Cole, J.

On the trial of this cause in the circuit court, the plaintiff in error, who was the plaintiff below, requested the court, among other things, to instruct the jury as follows: “ That if they believed that the sheriffs sale to Shackelford was without consideration, and for Doty’s benefit, and the deed from Doty to Goodell was a good and valid deed, made in good faith and for a valuable consideration, and was duly recorded prior to any conveyance of the same lots by Shackelford to Covall, through whom the defendant claims title, then the sheriff’s deed was void as to Goodell and his grantees.”

This instruction was refused and exception duly taken. And the main question which we propose now to consider, is, was the instruction right in point of law, and proper under the evidence in the case to be given to the jury? We are of the opinion that it was.

In order to perceive the application of the instruction more clearly, it will be necessary to bear in mind some of the facts of the case as they appeared in the evidence or were offered to be proven on the trial. The defendant to defeat the action, with other testimony, had offered in evidence, transcripts of certain judgments from the counties of Brown and Milwaukee, in favor of Alanson Sweet, and against James D. Doty, and the execution and vend. exp. issued thereon, by virtue of which the premises in controversy had been sold by the sheriff of Dane county, on the 16th day of August, 1842, to Barlow Shackelford, and had also offered in evidence the certificates of sale, made and filed by the sheriff; and the sheriff’s deed to the purchaser, Shackelford, which bore date, August 17th, 1844. From the plaintiff’s case it appeared that Doty had conveyed the premises on the 25th day of February, 1843, to Goodell, through whom the plaintiff, Reynolds, claimed title. Further, it appears that on the trial the plaintiff [479]*479insisted and had offered to prove for the purpose of impeaching and avoiding the sheriff’s deed that the judgments in favor of Sweet had been paid and satisfied prior to the sale on the execution issued thereon ; that the purchaser, Shack-elford, had full notice of such payment and satisfaction; that the sale Avas made for the benefit of Doty, and by collusion between him and Shackelford to defraud the creditors and subsequent purchasers of Doty; and that no consideration passed at the sheriff’s sale from Shackelford. All this testimony being objected to was ruled out by the court.

The real question fairly piesented by the instruction and the ruling of the courUn rejecting this evidence may be stated to be this: It being made to appear that the sheriff’s sale to Shackelford was without consideration and for Doty’s benefit, and intended by the parties to it to defraud prior or subsequent purchasers of the same premises; and that the deed from Doty to Goodell was a good and valid deed made in good faith and for a valuable consideration, and placed upon record prior to any conveyance from Shackelford, whether these facts existing or being satisfactorily established, the title derived from Goodell would prevail against a title claimed through Shackelford? The determination of this question will depend upon the operation of the statute in force at the time of the execution of these several conveyances.

The first section of title one of the act to prevent fraudulent conveyances, and contracts relative to real and personal property found in the R. S. of Ter: of Wis., page 161, reads as follows: That every conveyance of any estate or interest in lands and every charge upon lands or upon the rents and profits thereof made or created with the intent to defraud prior or subsequent purchasers for a valuable consideration of the same lands, rents or profits, as against such purchasers shall be void.” It will be noticed that this provision is a substantial transcript of the statute of 27, Eliz. c. 4, (Bac. Ab., [480]*480Title "Fraud” C.,) which would probably have controlled the case in the absence of any special enactment, and which has received frequent construction as well in the courts in England as in the various State and federal courts in this country. It may be well to premise here that we do not suppose in view of the statute just cited, and under the circumstances of this case, there can be really any material distinction in principle between a sheriff’s sale made as this was alleged to have been made for the purpose of fraud and a private sale. For it would seem if the sale and conveyance were actually made with the intent to defraud prior or subsequent purchasers for a valuable consideration of the same lands, the parties could not avoid the expressed consequences of the statute by resorting to the idle ceremony of a sheriff’s sale under an execution. Assuming therefore that the condition of the case is not otherwise than it would have been, had Doty directly made the deed to Shackelford, voluntarily and with the intent to defraud subsequent purchasers for valuable consideration, how does the matter stand ? Doty and Shackelford, according to the assumption, collude together to have a judicial sale, made under executions issued upon judgments paid and satisfied, with the intent thereby to defraud subsequent purchasers. Now if we had not the light which numerous cases, decided by the most eminent judges, have thrown upon this statute, or one in pari materia, still, by giving the language of the statute, its fair, ordinary meaning, is there room for a reasonable doubt that a conveyance, admitted to be fraudulent in its very inception, fictitious, without consideration, and for the benefit of the real grantor, and which was designed by the parties to it to defraud subsequent purchasers, must be, as against a subsequent purchaser, void? We think not. Courts in England have gone so far in their construction of the statute of 27, Eliz., as to hold that a voluntary conveyance in law was fraudulent and void against a subsequent purchaser [481]*481for valuable consideration even with notice. Evelyn vs. Templar, 2 Brown, Ch. R., Eden’s edition, 148; Doe ex dem. Otley vs. Manning, 9 East., 59.

Lord Ellenborough in Perry vs. James, 16 East., 212, says notice of a prior voluntary settlement cannot vary the question, for it amounts to only a notice of a settlement which was void against a subsequent purchaser for a valuable consideration. The Master of the Rolls, in the case of Buckle vs. Mitchell, 18 Ves. Jr., 110, also stated, that the statute of 27 Elizabeth, had received the construction that a voluntary settlement however free from actual fraud, is by the operation of that statute deemed fraudulent and void against a subsequent purchaser for valuable consideration, even where the purchase has been made with notice of the prior voluntary settlement, “ and it is settled in England,” says Chancellor Kent, 4 Gom., p. 514, of eighth edition, that a voluntary conveyance, though for a meritorious purpose, will be deemed to have been made with fraudulent views, and be set aside in favor of a subsequent purchaser, for a valuable consideration, even though he had notice of the prior deed.” See also Pulvertoft vs. Pulvertoft, 18 Ves., 84. But the authorities do not extend the doctrine so far in this country. The American doctrine is that a bona fide

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Bluebook (online)
8 Wis. 471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reynolds-v-vilas-wis-1859.