Rose & Co. v. Brown

11 W. Va. 122, 1877 W. Va. LEXIS 24
CourtWest Virginia Supreme Court
DecidedSeptember 10, 1877
StatusPublished
Cited by69 cases

This text of 11 W. Va. 122 (Rose & Co. v. Brown) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose & Co. v. Brown, 11 W. Va. 122, 1877 W. Va. LEXIS 24 (W. Va. 1877).

Opinion

Johnson, Judge,

deliveredjthe opinion of the Court)

. The first point arising ill this cause is: should the deposition of Jacob B. Brown have been read upon the hearing of the cause. It is settled that at common law it is not competent testimony, Brown being the husband of his co-defendant Emily Brown. This question has been directly before this Court in Hill et ux. v. Proctor, 10 W. Va., 59, the court citing the common law rule, as laid down in 1 Greenl. Ev., section 334 &e., held that “the 22d and 23d sections of chapter 130of the Code of 1868, make no material change in the common law, as to husband and wife giving evidence for or against each other in a case in which they are parties, except in an action or suit between husband and wife.” The evidence in the cause just cited was given under circumstances very much like those surrounding this case. Hill’s deposition was taken in the cause of Hill et ux v. Proctor, and details statements favorable to himself and wife against the defendants.

It would be in violation of a clear principle of common law, not interfered with by the statute, to read the deposition of Brown upon the hearing of this cause. But it is argued by counsel for plaintiffs, that no exception was made to reading it in the court below, and it is too late to object here. If the objection did not affect the competency of the witness, and had not been made in the court below or passed upon by that court, it ought to be considered as having been waived and could not be noticed by the appellate court; but affecting as it does the competency of the witness to testify at all in the cause, it will be considered here, although the objection be here made for the first time. Hill et ux. v. Proctor, supra. The court, therefore, erred in hearing the 'cause upon that deposition'.

The next question is: Was the conveyance procured to [134]*134mac¡e by Jacob B. Brown, with the intent to hinder, delay or defraud his creditors ? By the 2d section o,f chapter 74 of the Code, any voluntary conveyance or any gift is void as to creditors, the debts existed at the time. It matters little whether Jacob Bi Brown gave his wife the $3,000.00 and she invested it in the house and lot, or whether he bought the property himself with the money and procured the conveyance to be made to her; in either event it would, as to creditors whose debts existed at the time, be void. But the 2d section of chapter 74 of the Code of West Virginia makes a clear distinction between the rights of existing and subsequent creditors, as to a voluntary conveyance; and such a conveyance cannot be impeached by subsequent creditors, on the mere ground of its being voluntary, and the party making it, or at whose instance it is made, being indebted to some extent, if there be no actual fraudulent view or intent in the party at the time; but if it be shown that there was mala fides, or fraud in fact, in the transaction, whether the actual fraudulent intent relates to existing creditors, or is directed exclusively against subsequent creditors, the effect is precisely the same, and subsequent creditors may upon the strength of such fraud successfully impeach it. Upon the question of fraudulent intent, or whether the conveyance is fraudulent in fact, as to subsequent creditors, it is proper to consider the circumstances of its being voluntary, and the party indebted at the time; and if additional circumstances connected with those two be sufficient to show fraud in fact, it is void as to subsequent creditors. It is not necessary that there should be direct proof to show the fraud; it is to be legally inferred from the facts and circumstances of the case, where those facts and circumstances are of -such a character as to lead a reasonable man to the conclusion, that the conveyance was made with intent to hinder, delay or defraud existing or future creditors. Where the evidence shows such facts and circumstances, as the conveyance being volun[135]*135tary, the grantor being indebted to a material extent, to the degree of embarrassment, so that .the conveyance would probably throw a hazard upon the creditor, and these circumstances are wholly unexplained, it is for the court or jury to say from circumstances like these, whether the grantor intended to hinder, delay or defraud his creditors; and if the circumstances are such, whatever they may be, to make a prima facie case of fraudulent intent in the grantor, they are to be taken as conclusive evidence of the fraudulent intent, unless rebutted by other facts and circumstances in the case. Lockhard & Ireland v. Beckley et al., 10 W. Va., 87; Hunter’s ex’or v. Hunter, 10 W. Va., 321.

Applying those principles to this cause : Was the conveyance procured to be made to Mrs. Emily Brown with the actual fraudulent intent to hinder, delay or defraud the creditors of Jacob B. Brown ? Nearly all the debts audited in this cause appear to have been contracted subsequent to the date of said conveyance. At the time the conveyance was made, as the pleadings and, proofs show, the said Brown owed the Kabletown and Bloomery Turnpike Company about $50.00; and by Jacob B. Brown’s admission in his answer he also at that time owed to Massman & Co. a debt of about $168.00, of which he claims to have since paid $100.00, and claims that at the time he filed his answer, he only owed that firm about $68.00. The commissioner’s report shows, that on the 1st day of March, 1876, he owed said firm of Massman & Co. $271.27. Afterwards, beside the $3,000.00 which his wife claims he had given to her, he paid (as we shall hereafter show) upon the property $1,500.00. The pleadings and proofs show, that the most he owed at the time the conveyance was made, was bout $218.00; and also that but little additional indebtedness was incurred by him for nearly a year afterwards, and the major part of it after that. Now- does this state of things throw upon him the necessity of explaining the circumstances further to escape the conclusion that a [136]*136^ie time the conveyance was made, he procured it with the actual fraudulent intent to hinder, delay or defraud his creditors? Does it make such a 'prima facie case of fraudulent intent, as is conclusive evidence of such intent, not being explained by other facts and circumstances in the case? We thinlcnot. The defendant Brown was not indebted at that time, as far as the record discloses^ to that degree of embarassment. It must be remembered that the deposition of Jacob B. Brown is not in the cause. The cause stands upon the bill and answers with replication thereto, the agreement filed, and the commissioner’s report. From this state of the cause we cannot say, that enough is shown to prima facie fix upon Brown, at the time said deed was executed, an actual fraudulent intent to hinder, delay or defraud his creditors. But while the conveyance itself, which was a voluntary one, was not fraudulent in fact, did Jacob B. Brown in fraud of his creditors voluntarily divert his means from the payment of his debts, and invest them in said house and lot for the benefit of his wife; and if so, can these creditors charge said house and lot therewith? It is insisted in the argument, that Mrs. Brown from her own separate business paid $1,000.00 of the $1,500.00 that was invested in said house and lot. The only evidence of this fact in the cause is found in the answers of Jacob B. Brown and Emily his wife, and the answers being replied to, and that fact being put in issue, there is no proof thereof in the cause.

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Bluebook (online)
11 W. Va. 122, 1877 W. Va. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-co-v-brown-wva-1877.