Smith v. Smith

35 S.E. 876, 48 W. Va. 51, 1900 W. Va. LEXIS 7
West Virginia Supreme Court·Decided April 14, 1900·Published·Cited by 6 cases

Opinion

English, Judge:

David M. Smith was engaged in the live-stock business in 1894-95. His father, William Smith, and brother W. F. Smith at that time resided in Doddridge County, while J. It. Smith, [52] another brother, lived in Ritchie, where he was engaged in business with one Chapman. It appears from the record that William Smith, on the 13th of June, 1890, in consideration of eight hundred and fifty dollars, and the further consideration that said David should relinquish any further interest in the estate of the grantor, conveyed to said David a tract of land in Tyler County containing two hundred and ten acres, taking notes for deferred payments, and retaining in the deed a vendor’s lien to secure the same. During the year 1895, J. R. Smith and W. S. Chapman purchased cattle, and shipped them to David Smith, at Reading, Pennsylvania, from which point he marketed them. At the close of the year and the beginning of 1896 he became considerably involved in debt. His creditors were demanding their money, and his notes and checks were being protested. On April 20, 1896, J. L. McCullough, one of his Tyler County creditors, instituted a suit against him for the recovery of seven hundred and fifteen dollars, and sued out an attachment against his property, and had it levied on said two hundred and ten acres of land. On returning from Pennsylvania, and finding said attachment levied on his land, David prevailed on his father to buy back, said tract of two hundred and ten acres for the consideration of two thousand dollars, out of which the vendor’s lien of six hundred and ninety-eight dollars was first paid; then the sum of one hundred and eighty dollars, which David had borrowed from his father; and next the said McCullough debt, amounting to about six hundred. dollars; and the remainder was to be paid to W. F. Smith, on what David owed him, amounting to five hundred and seventy-one dollars and forty-six cents, — all of which, except about one hundred and ten dollars, was paid before this suit was brought. The deed reconveying said land from David Smith to his father was dated April 30, 1896, and recorded on the 1st day of May following. On October 15, 1896, J. R. Smith and W. S. Chapman, partners under the name of Smith & Chapman, filed their bill in the circuit court of Tyler County, making said David M. Smith, William Smith, J. L. McCullough, W. F. Smith, J. T. Shirley, O. W. Baty, and P. A. Gilbert parties defendant, setting forth the facts above detailed, and alleging that the reconveyance made by David to his father of said two hundred and ten acres was made with intent to hinder, delay, and defraud the creditors of said [53] Davis; that said William Smith, David M., and W. P. Smith colluded together in the execution of said deed, for the purpose of cheating and defrauding plaintiffs out of the debt justly due them from David, who is alleged at that time to have been insolvent. Plaintiffs also allege that David remained in possession of said land ever since the date of said reconveyance, and they prayed that said deed of reconveyance be set aside as fraudulent and void as to plaintiffs, and that said land he sold in satisfaction ■ of their debt. The defendants William and and W. P. Smith demurred to the plaintiffs’ bill, and answered it, denying every material allegation thereof. Depositions were taken on both sides, and on December 6, 1898, a decree was rendered in the cause holding that said reconveyance of the two hundred and ten acres by David Smith to his father was fraudulent, and decreeing that the same be set aside as to plaintiff’s debt, and sold as therein provided, in satisfaction thereof. Prom this decree William Smith obtained this appeal, claiming that the court erred in decreeing that William, David, and W. P. Smith colluded together to cheat, hinder, and delay and defraud plaintiffs from the collection of their debt, and that they procured the deed to .be made by David to his father for the purpose of defrauding the plaintiffs.

The plaintiffs in their bill make this allegation, but it is met by the absolute denial of the defendants in their answer, and, in my view, the plaintiffs fail to sustain their allegations by the evidence. Neither do the circumstances detailed in the testimony warrant the court in rendering the decree it did. When attention is called to the circumstances existing at the time the defendant David Smith returned from Pennsylvania, it is found that J. L. McCullough had brought the chancery suit against David, and sued out the attachment aforesaid against this land for seven hundred and fifteen dollars, which had been levied thereon on the 20th of April, 1896, and this attachment was subject, of course, to the vendor’s lien reserved by his father on said land, amounting to six hundred and ninety-eight dollars and fifty-four cents, which, with six years’ interest, would make about nine hundred and sixty-dollars. In addition to that, David owed his father about one hundred and sixty dollars and some interest for cattle sold him and money paid for him. Can* any fraud be attributed to David in selling his land to his father in satisfaction of his vendor’s lien, and in [54] payment of money advanced and cattle sold ? In order to make this sale to his father clear of incumbrance, he was compelled to discharge the McCullough attachment lien, and in so doing applied the purchase money received from his father to the satisfaction of the same, which he had a perfect right to do. He had been sued by McCullough, his land had been levied upon, and, unless this attachment was satisfied, he could only expect that his land would be sold at auction, — perhaps at a sacrifice, — and it was natural and proper that he should go to his father, from whom he had received the deed, and propose to resell the land to him in satisfaction of his vendor’s lien and his other claim, and with the residue of the purchase money to pay off such debts as he recognized as just and honest. In the case of Harden v. Wagner, 22 W. Va. 370, Snyder, Judge, delivering the opinion of the Court, said: "As to the relationship of the parties, it may be stated that, while the law allows no discrimination in favor of creditors by reason of their being related to the debtor, it certainly does not put them at a disadvantage. The debtor may do no more for them than a stranger, but there is no rule of law that he may not do as much.”

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Smith v. Smith, 35 S.E. 876, 48 W. Va. 51, 1900 W. Va. LEXIS 7 (W. Va. 1900).

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