Stevens v. Meyers

104 N.W. 529, 14 N.D. 398, 1905 N.D. LEXIS 63
North Dakota Supreme Court·Decided June 27, 1905·Published·Cited by 11 cases

Opinion

Young, J.

The plaintiff brought this action to quiet title to an undivided one-fourth interest in 480 acres of land situated in Grand Forks county, which was conveyed to her by her husband, Richard Stevens, on- January 30, 1902. The adverse interest of the defendant arose through the levy of a warrant of attachment upon the land on April 13, 1903, in an action against plaintiff’s husband to recover damages for a slander alleged to have -been published by him 'concerning the defendant on January 26,1902. The defendant alleges that the conveyance to the plaintiff, which was made after the utterance of the -alleged slander, “was- made fraudulently, and with intent to -cheat and defraud his -creditors, and particularly this defendant, and to prevent and hinder him in collecting his just -claim for damages.” Judgment was entered declaring the attachment proceedings null and void and quieting title in the plaintiff. Defendant has appealed from the judgment.

The statement of case, which was settled pursuant to section 5630, Rev. Codes 1899, under which the case was -tried, specifies the following question for review: “Was the transfer of the land here in controversy, made by Richard Stevens to his wife, Rena Stevens, the plaintiff in this action, fraudulent as to this defendant, Charles A. Myers?” Counsel for plaintiff contends that the foregoing' specification is sufficient to authorize a review of the [401]*401evidence. The contention must be sustained. Section 5630, which is our only authority to review evidence in cases tried under that section, requires the appellant to specify in his statement of the case “the questions of fact that he desires the Supreme Court to review,” unless he desires a review of the entire case, in which event he shall so specify. The appellant has not demanded a review of the entire case.. He specifies but a single question for review, and that, in our opinion, is not a question of fact within the meaning of the above section, but a question of law. A similar specification was held insufficient in Salemonson v. Thompson, 101 N. W. 320, 13 N. D. 182. In that case the question specified was whether a certain person was a creditor. We said: “The vice in this question is that it does not present for examination and determination on the evidence any particular fact, 'but, on the contrary, calls for the deduction of a legal conclusion from indefinite and unknown facts. * * * The statute above quoted contemplates that the specification of questions -of fact for review in this court shall be sufficiently specific to enable the respondent to determine, for the purpose of 'amendment, w-hat evidence should be included in the statement upon the controverted question of fact. One could only conjecture as to what evidence or facts the appellant would rely upon to sustain her contention that she was a creditor.” We think the specification in this case is insufficient for the reasons stated in the case just cited. It calls for a legal conclusion. A more liberal rule should not be applied in determining the sufficiency of a specification of facts for retrial under this statute than prevails in testing the sufficiency of pleadings. Fraud “is never sufficiently pleaded except by the statement of the facts upon which the charge is based.” See Bliss on Code Pleading, sections 211, 339, and note, and cases cited; Maxwell on Code Pleading, 193; Bump on Fraudulent Conveyances, section 28; 9 Enc. Pl. & Pr. 686, 687 and 688, and cases cited. Also Bump on Fraud, 114. The appellant having failed to demand a review of the entire case, or to specify any particular fact for review, we are without authority to examine the evidence, and all questions of fact must be deemed to have 'been properly decided.

The only question of fact before us, then, is this: Do the findings of fact sustain the conclusions of law and judgment? This question, in our opinion, must receive an affirmative answer. The trial court found, among other things, “that the said conveyance was made by the said Richard Stevens in good faith, and without any [402]*402intent on his part to defraud the defendant or any other person, but for the sole purpose of providing the plaintiff with a means of support, the said conveyance being so^ made by him to plaintiff on the eve, and in anticipation, of the abandonment of plaintiff by 'her said husband, Richard Stevens, without any just cause or excuse; and that said conveyance was accepted by This plaintiff in good faith, and without any intent on her part to defraud the defendant or any other person, and without any participation by plaintiff in such intent, and without knowledge of any such intent on the part of said Richard Stevens; and that at the time of accepting said conveyance this plaintiff knew nothing of the defendant or his alleged claim for slander against the said Richard Stevens.” It will be conceded that the above finding, standing alone and unimpeached, would establish conclusively the validity of the conveyance. Defendant seeks to avoid its effect by referring to certain additional findings which were made at his request, in which the court found, in substance, that at the time of the execution of the deed in question Richard Stevens was indebted to one Thomas Stevens in a sum exceeding $1,400; that the land conveyed to the plaintiff was all the property he then owned in the state, which was the place of residence of himself and wife on that date; and that because of such transfer the defendant has been unable to collect his claim. It is said that these additional findings present a case of voluntary conveyance by an insolvent, and that the question of actual intent with which the conveyance was made is not material. In other words, that the law conclusively presumes an intent to defraud when a voluntary conveyance is made by an insolvent. Many •courts have so held. A discussion of the principles which lie at the foundation of these cases can serve nio useful purpose. Our statute in plain language has laid down a different rule, and, whether wise or unwise, it is our duty to apply it. Sections 5052 and 5055, so far as material, read as follows: Section 5052: “Every transfer of property * * * with intent to delay or defraud any creditor or other person of his demands, is void as against all creditors of the debtor.” Section 5055: “In all cases arising under * * * the provisions of this chapter, the question of fraudulent intent is one of fact and not of law; nor can any transfer or charge be adjudged fraudulent solely on the ground that it was not made for a valuable consideration.” It will be noted that section 5052 makes the fraudulent intent the vital fact which renders the oonveyance void, and section 5055 decíales that “the [403]*403question of fraudulent intent is one of fact, and not of law,” and the latter section goes further, and provides that no transfer shall be adjudged fraudulent solely upon the ground .that it was not-made for a valuable consideration. This statute will not permit us to hold that a fraudulent intent will be conclusively presumed as a matter of law from the fact that a conveyance was made without consideration, and 'by one who was at the time insolvent; for such a holding assumes that under such circumstances the question of intent is one of law, and- not of fact, and is directly in the teeth of the statute. The question of intent is always one of fact. It must -be alleged, proved and found in order to avoid the transfer. The fact of insolvency of the grantor and the inadequacy or total want of consideration are evidence of the grantor’s intent to defraud, but are not conclusive evidence. The fraudulent intent is the ultimate fact in issue.

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Stevens v. Meyers, 104 N.W. 529, 14 N.D. 398, 1905 N.D. LEXIS 63 (N.D. 1905).

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