Shaw v. Tracy

83 Mo. 224
CourtSupreme Court of Missouri
DecidedOctober 15, 1884
StatusPublished
Cited by4 cases

This text of 83 Mo. 224 (Shaw v. Tracy) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaw v. Tracy, 83 Mo. 224 (Mo. 1884).

Opinions

Rat, J.

It appears from the record in this case that in October, 1864, Charles B. Lewis, being seized in fee of the legal title to certain real estate in Saline county, Missouri, in trust for the use and benefit of his brother, Henry B. Lewis, at the instance of his brother [227]*227conveyed the same to Sally Gr. Lewis, the wife of his said brother, in trust, for the sole and separate use of the wife during her life, with remainder in fee to her children at her death. In March, 1871, Sally Gr. Lewis and her husband, Henry B. Lewis, conveyed the property in fee to the defendant, Edwards, in trust for the defendant, Tracy, to secure $700.00 that day borrowed "by them from said Tracy, and for which they, also, gave their promissory note, both these deeds being duly acknowledged and recorded in the proper office at the time.

In51875, Sally Gr. Lewis, the wife, died, leaving the plaintiffs, Alice Shaw and Pauline Stevenson, as her only surviving children, and the defendants, Ella, Joseph and Sally Yaughn, as her only grandchildren by a deceased daughter. In 1877, the plaintiffs brought this suit to declare void, as to them, said deed of trust to Edwards for the benefit of Tracy, on the ground that the same was made in fraud of their rights, and is a ■cloud upon their title to the said real estate, which they claim in fee since the death of their mother, under the provisions of said deed of trust to her from said Charles B. Lewis aforesaid. The evidence in the cause shows that Henry B. Lewis, being insolvent, furnished his brother, Charles, the money with which to purchase said real estate, with the understanding that he. would take the title in his own name, and hold it secretly in trust for the said Henry B. Lewis, which he accordingly did; and afterwards, at the instance of said Henry B. Lewis, he conveyed it to his wife, Sally Gf. Lewis, in trust as aforesaid, for the nominal consideration of $1 and love and affection.

The evidence, also, shows that Chas. B. Lewis, in the purchase of said property, advanced $600.00 of his own money, besides the amount furnished by his brother Henry B. Lewis, as aforesaid, and that, at the time of ■executing said conveyance to Sally Gr. Lewis, he refused \to deliver the same, unless he was made secure in the [228]*228amount so advanced. That to 'secure him, Henry B. Lewis gave him the promissory note of Oottingham & Vaughn for $600.00, whereupon the deed was delivered. That when the Oottingham & Vaughn note became due, Henry B. Lewis and Sally Gr. Lewis borrowed the money of Smith to pay it, and when the Smith debt fell due, they borrowed money of Edwards to pay it, ancfi when the Edwards debt matured, for the purpose of discharging it, they then borrowed of Tracy the $700.00-for which they gave their promissory note and deed of trust here sought to be declared void, as aforesaid, and with it paid off the debt to Edwards. It further appears that at the time of executing said note and deed of trust they gave Edwards and Tracy a full history of the debt and the title of Sally Gr. Lewis. The cause was submitted to the court for trial, under the pleadings and evidence, and the court, after hearing and considering the same, found the issues for the defendants and dismissed the plaintiffs’’ bill, and this is assigned for error by the plaintiffs, who bring the cause here by writ of error.

The question to be decided upon this state of facts is whether the deed from Chas. B. Lewis to Sally Gr. Lewis under our statute of fraudulent conveyances, sections 2497 and 2498, revision of 1879, and the adjudications thereunder, is to be treated and held as- fraudulent and void as against the trustee and beneficiary in the deed of trust from Sally Gr. Lewis and her husband, Henry B. Lewis. It is conceded, we believe, that our statute is a substantial re-enactment of the English- statutes of 13 Eliz., c. 5, and 27Eliz., c. 4, against fraudulent gifts and conveyances, with some modifications that embody the English construction of these statutes. Our statute, with its modifications, is substantially that of the state of New York, from which it seems to have been taken. According to established rule of construction in such cases, our legislature will be deemed to have enacted the above statute in the sense in which the [229]*229statute had been construed by the courts of the country from which it was taken. Qatheart v. Robinson, 5 Peters 280; Story’s Eq. Juris.; sec. 429; Kent Com., pp. 463, 464. The English statute of 13th Eliz., c. 5, has reference to creditors, while 27th Eliz., c. 4, relates only to purchasers of land. With us, however, they are embodied in the same statute above referred to. The nature, effect and construction of these statutes have been fully considered and discussed by the following (among others) text writers and adjudicated cases, to-wit: 4 Kent Com., p. 463; 1 Smith’s Leading Cases, part 1, page 48; 1 Leading Cases in Equity, part 1, page 415; 2 Greenleaf’s' Cruise on* Real Property, pp. 519, 521, 524, 525; 1 Story’s Eq. Jur., secs. 426, 432 ; 4 Vt. 389; 6 Vt. 411; 16 Vt. 209 ; 3 Bush 343; 4 Cowen 603 ; 14 Mass. 139; 5 Peters 280; 1 Md. Ch. 507; 2 Gray 447; 3 Wash, on Real Prop., p. 337.

The result of the foregoing authorities may, we think, be fairly stated thus: In England, it is settled that a voluntary conveyance, though for a meritorious purpose, will be deemed to have been made with fraudulent views, set aside in favor of a subsequent purchaser for a valuable consideration, even though he had notice of the prior deed. In the United States, while a number of the highest authorities adhere to the English rule, the better American doctrine and weight of authority seems now to be that voluntary conveyances of land, bona fide made, and not originally fraudulent, are valid against subsequent purchasers. In both England and America, however, such a conveyance, if originally made with a fraudulent intent, is void, both as to creditors and purchasers, prior and subsequent.

The present deed from Chas. B. to Sally G. Lewis' is conceded to have been voluntary and fraudulent when made, and, whether tried by the English or American rule, must be held and treated as fraudulent as against the subsequent deed of trust from Sally G. Lewis and husband to Edwards, as trustee for Tracy, [230]*230whether the beneficiary therein is to be regarded as a creditor or purchaser, since, in some sense, he occupies both relations. He became a creditor by loaning the money, and a purchaser, through his trustee, when he received the deed of trust. According to all the" authorities, mortgagees and beneficiaries in a deed of trust in the nature of a mortgage are purchasers, within the meaning of 27 Eliz. on fraudulent conveyances, as adopted in this country. Prior adjudications of this court, also, are equally adverse to the doctrine contended for by plaintiff in error, and must be accepted as decisive of this case. In the case of Henderson v. Dickey, 50 Mo. 161, it is held that: “If a person who is insolvent or in failing circumstances purchases property with his own money, and has it conveyed by his vendors to a .third party, that conveyance is void as to subsequent purchasers of the property from him. * * * The property continues to be his, and if he conveys it his vendee will acquire a good title.” The case of St. Louis Mutual Life Ins. Co. v. Cravens, 69 Mo. 72, is to the same effect.

In Howe v. Waysman, 12 Mo.

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Bluebook (online)
83 Mo. 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaw-v-tracy-mo-1884.