Sawyer v. Metters

113 N.W. 682, 133 Wis. 350, 1907 Wisc. LEXIS 47
Wisconsin Supreme Court·Decided November 5, 1907·Published·Cited by 4 cases

Opinion

KeewiN, J.

Tbe main contentions of appellant are (1) that tbe case at bar is not ruled, bj Ecklor v. Wolcott, 115 Wis. 19, 90 N. W. 1081; and (2) that tbe findings and evidence warrant judgment for plaintiff.

1. As we have seen, tbe co-urt below dismissed tbe action and gave judgment for defendant on tbe strength of Ecklor v. Wolcott, 115 Wis. 19, 90 N. W. 1081, because of certain language used to tbe effect that under sec. 3832, Stats. (1898), it must appear, in order to entitle tbe administrator to maintain tbe action, tbat there will be a deficiency of assets to pay creditors existing at tbe time of tbe transfer. This language was obviously inadvertently used by tbe court and was not necessary to the decision of tbe case, since tbe ease turned upon tbe want of any evidence showing “tbat there was or would be any deficiency of assets in the estate to meet all proper claims against it of any nature.” The language in the opinion in the Echlor Gase, to the effect that it must appear tbat tbe suit under this statute can be maintained by tbe administrator only on account of creditors existing at tbe time of tbe transfer, is not a correct statement of tbe law, and, so far as out of harmony with tbe doctrine laid down here, must be regarded as overruled. Borcheri v. Borchert, 132 Wis. 593, 113 N. W. 35. It is established in the case before us that there are claims allowed against the estate of John P. Metters, deceased, which there are no assets to pay, although these claims did not exist at the time of the transfer in question. The vital question, therefore, under this head is whether an action under, this statute by an administrator can be maintained for the purpose of satisfying claims allowed against the estate not in existence at the time the conveyance sought to be set aside was made, but which were in contemplation. There can be no doubt under tbe authorities tbat an action can be maintained by an administrator under sec. 3832, Stats. (1898), to set aside a conveyance fraudulent as to future creditors whose claims [356] arose after the conveyance and who were in the contemplation of the grantor at the time of the conveyance and who were intended by the grantor to be defrauded by such conveyance. So we think it clear that an administrator may attack his decedent’s transfer in fraud of a future creditor whose claim has been allowed where there is a deficiency of assets. The statute (sec. 3832) seems clearly to warrant this construction and cover a fraudulent transfer during the lifetime of deceased affecting future creditors as well as creditors existing at the time of the transfer. It provides:

• “When there shall be a deficiency of assets in the hands of an executor or administrator and when the deceased shall in his lifetime have conveyed any real estate or any right or interest therein, with intent to defraud his creditors or to avoid any right, debt or duty, or shall have so conveyed such estate that by law the deeds or conveyances are void as against creditors, the executor or administrator may and it shall be his duty to commence and prosecute to final judgment ajiy proper action for the recovery of the same, and may recover for the benefit of the creditors all such real estate so fraudulently conveyed,” etc.

This language is broad and was manifestly intended by the legislature to cover all conveyances made by decedent in his lifetime and which “by law are void as against creditors.” Now there can be no doubt that a conveyance under some circumstances may be void as to future creditors whose claims were not in existence at the time of such conveyance, and therefore may be set aside by the administrator in suit under sec. 3832, Stats. (1898). Sommermeyer v. Schwartz, 89 Wis. 66, 61 N. W. 311; Zimmerman v. Bannon, 101 Wis. 407, 77 N. W. 735; Hoffman v. Junk, 51 Wis. 613, 8 N. W. 493; Case v. Phelps, 39 N. Y. 164; Smith v. Podges, 92 U. S. 183 ; Fisher v. Lewis, 69 Mo. 629; Black v. Hease, 37 Pa. St. 433.

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Sawyer v. Metters, 113 N.W. 682, 133 Wis. 350, 1907 Wisc. LEXIS 47 (Wis. 1907).

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