Shepherd v. Woodfolk

78 Tenn. 593
CourtTennessee Supreme Court
DecidedDecember 15, 1882
StatusPublished
Cited by1 cases

This text of 78 Tenn. 593 (Shepherd v. Woodfolk) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shepherd v. Woodfolk, 78 Tenn. 593 (Tenn. 1882).

Opinion

Garner, Sp. J.,

delivered the opinion of the court.

This cause has been very fully presented in argu-mei t, by learned counsel. We have examined the voluminous record of several thousand pages.

It involves various transactions — and conveyances of property — and legal proceedings in the circuit, chancery, supreme and federal courts — and the rights and equities of sundry judgment creditors of the late Gen. W. W. Woodfolk, to the property in litigation — and the rights and equities of said creditors, as between themselves, to priority of satisfaction out of the property aforesaid.

At the breaking out of the late war, Gen. Wood-folk had an estate of some $500,000 or $600,000, and was indebted some $200,000 or $300,000.

As the result of the war, he lost his valuable slave property, a large amount of cotton, a large portion of ■his valuable stock of various kinds, and other personal property; so that, at the close of the war, and when the courts were again open, he was indebted to insolvency — with the prospect before him, of suits, by his numerous creditors, to enforce the collection of their demands.

In this state of things, he went to work to place [595]*595bis property beyond the reach of his creditors, before they could fasten liens upon it. They Commenced •suing him early in 1866, upon claims to a large •amount.

On the 1st of January, 1866, he left his home at ■Nashville, and went to Memphis, where he executed his note to his son, William Woodfolk, for $39,425, and executed then, or soon thereafter, a power of attorney to one Chapman, authorizing him to confess judgment on said note — which was done in Chicot county, Ark., on the 16th of April, 1866. Fi. fa. •thereon was issued April 19, 1866, and was levied upon a valuable tract of some 2,150 or 2,613 acres oí ■land in said county, which was sold by the sheriff and bought by William Woodfolk for some $4,500, who credited his judgment accordingly, and took the -sheriff’s deed therefor.

In June, 1866, Gen. Woodfolk caused his banker at New York, Thomas Eakin, to purchase for him $16,000 of U. S. bonds, and in July, 1866, $6,000 more; and, after selling these bonds at a profit, and .paying Woodfolk’s drafts, amounting to $3,597, Mr. Eakin, by Gen. Woodfolk’s direction, invested the net proceeds in the purchase of $20,000 U. S. bonds on the 12th of January, 1867, and sent them by express to the General, and paid him the remaining sum of $332.26 in cash.

Early in 1867, W. W. Woodfolk sold and conveyed, for cash, large tracts of land owned by him in several ■different counties of West Tennessee.

On the 31st of January, 1867, Gen. Woodfolk left [596]*596his home at Nashville, and went to Gallatin, and executed and acknowledged a deed, conveying to J. T. Quarles, as trustee, a tract of over 3,000 acres of land in Jackson county, to secure the Arkansas judgment confessed in .favor of William Woodfolk. Said deed was the next day received for registration, and at once put to record in Jackson county.

On the 18th of February, 1867, W. W. Woodfolk conveyed to John Hughes, by deed, f >r the expressed consideration of $15,000 in hand paid, Woodfolk’s home-place at Nashville, of some five acres and upwards, and the adjoining lot of over two acres, and some 389 shares of stock in the Union Bank, of the nominal value of near $40,000. This deed was at once put to record.

On the 21st and 28th of February, 1867, M. H. Howard, who was a creditor of W. W. Woodfolk, by note for borrowed money, for $7,000, and interest, filed his original and amended bills in the chancery court of Davidson county, attacking the foregoing conveyances for fraud.

On the 10th of June, 1867, Hughes reconveyed the Nashville property and bank stock to W. W. Wood-folk; and, in his deposition, Hughes proves that he-did not pay a dime for said property, but was to sell it, and get ten per cent for his services.

On the 23d of January, 1868, W. W. Woodfolk again left his home at Nashville, and went to Columbia, and there confessed judgment in favor of his son,. William Woodfolk, for $37,150 — balance of the Arkansas judgment before spoken of.

[597]*597■One Ivans recovered judgment against W. W. Wood-folk May 8, 1866, in the U. S. Circuit Court at Nashville, for $4,496.55, and after being delayed by Gen* Woodfolk’s appeal to the Supreme Court of the United States, which was dismissed, Ivans took out an execution and had Gen. Woodfolk’s home place sold January 25, 1868, and bought it for $5,174.74, and credited his judgment accordingly, and took the marshal’s deed for the property, March 4, 1868.

On the 22d of May, 1869, William Woodfolk undertook to redeem his father’s home place from Ivans, by paying him $5,583.47, and William Woodfolk advanced $16,000 of his Arkansas judgment on said property, and took Ivans’ deed.

Thus, a judgment creditor of W. W. Woodfolk, would have had to pay William Woodfolk near $22,-000 and interest, in order to redeem said property from him.

The proof shows that. William Woodfolk was a young man of moderate means — while his father was possessed of ample monied means.

It is evident, from all the facts and circumstances disclosed in this record, that W. W. Woodfolk’s entire •transactions hereinbefore referred to, were had and done for the purpose of placing his property and effects beyond the reach of his creditors; and that his son Williám was, at all times, active in aiding his father to carry out said design. It would seem most probable, that the money paid to Ivans by William Wood-folk, was the money of his father.

In this connection it is proper to state, that per[598]*598mitting the 2f acre lot adjoining Gen. Woodfolk’s home place at Nashville, to be sold for taxes, and bought at said sales by William Woodfolk, and his taking the deeds of the tax collectors therefor were, in our opinion, a part of the devices of father and sou, to throw every obstacle possible in the way of Gen. Woodfolk’s creditors in their efforts to collect their debts.

Even if William Woodfolk used his own money in his attempted redemption from Ivans, and his tax sale' purchases — still, as his purpose, in these transactions, was to help his father to hinder, delay and defraud his creditors, then, as to said creditors, said purchases and attempted redemption are fraudulent and void.

In Alley v. Connell, 3 Head, 582, the eminent jurist, Judge McKinney, in delivering the opinion of this court, announces the doctrine, that a conveyance fraudulent in fact is absolutely void, and is not permitted to stand as a security for any purpose of reimbursement or indemnity; and that, if a deed be void for fraud in fact, the creditor is entitled to avoid it without prepayment, to the fraudulent purchaser, of the purchase money.

The case of Alley v. Connell is cited approvingly in Hickman v. Perrin, 6 Cold., 142; Turbeville v. Gibson, 5 Heis., 586, and Lockhard v. Brodie, 1 Tenn. Chancery, 388, and its authority has never been called in question that we are aware of.

On this branch of the case we need only add, that, in our opinion, the execution of the note for $39,425. from W. W. Woodfolk to his son, William Woodfolk, [599]

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78 Tenn. 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shepherd-v-woodfolk-tenn-1882.