Stokes v. Rabenberg

227 N.W. 466, 56 S.D. 71, 1929 S.D. LEXIS 241
CourtSouth Dakota Supreme Court
DecidedNovember 19, 1929
DocketFile No. 6402
StatusPublished
Cited by3 cases

This text of 227 N.W. 466 (Stokes v. Rabenberg) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stokes v. Rabenberg, 227 N.W. 466, 56 S.D. 71, 1929 S.D. LEXIS 241 (S.D. 1929).

Opinion

FULLER, 'C.

The question here is whether a certain conveyance of a half section of land by Henry J. G. Rabenberg, defendant, to his son Will Rabenberg, defendant and appellant, was made for the purpose and with the intent of hindering, delaying, and defrauding the plaintiff, Guy L. Stokes, a creditor, who is respondent here. Upon trial below the transfer was found to have been without consideration and.m fraud of creditors. Inasmuch as we are convinced that the decision below is without adequate support in the evidence and is contrary to the clear preponderance of the evidence, some pains will be taken in a discussion of the proof.

Unlike a tradesman with numerous creditors, the debtor in this case is a farmer, and his only debt is that owing to plaintiff. On September' 16, 1919, the plaintiff sold the defendant Henry J. G. Rabenberg a quarter section of land in Marshall county, which was located from to 2j4 miles from the farm home of [73]*73the purchaser. The sale was made on a contract for deed in accordance with which Rabenberg paid Stokes the 'sum of $2,466.53 in money, and assumed a mortgage against the tract of $7,000 and gave to plaintiff a promissory note in the sum of $3,850, which was payable about December 15, 1923. It is to be remarked, as an evidentiary circumstance, that the effect of this transaction was to render the purchaser’s interest in the quarter section of land security for the payment of the note. Thus, if the property was worth the price at which it was sold, by plaintiff to defendant, the plaintiff’s note was adequately secured at the time it was given.

Rabenberg (whom, by that name, we shall herein distinguish from Will Rabenberg) failed to pay the note when it was due, and the plaintiff, Stokes, took judgment thereon February 11, 1924, for the sum of $4,132.65, no part of which has been paid. An execution on this judgment was returned unsatisfied.

On December 17, 1923, the deed in controversy went of record. It purported to have been executed b)1' Henry J. G. Rabenberg and his wife, Julia Rabenberg, grantors, to Will Rabenberg, grantee. It recited a consideration of $9,600 for the half section of land described in the deed — a different tract than that purchased by Rabenberg from plaintiff. It was 'dated March 24, 1915, and purported to have beejn acknowledged by the above-named grantors on that date before M. J. 'Stavin, a notary public. At the time of trial Julia Rabenberg was dead, and Henry J. G. Rabenberg, being-afflicted with palsy, did not testify. As to him the trial court found that: “The elder Rabenberg has for some time prior to 1918 been afflicted with palsy to such extent that such disease left the defendant in the condition whereby his hands shake and tremble, and that his condition was such that for many years prior to the trial of this action he required the assistance of different members of his family to assist in carrying out the ordinary business transactions.”

According to the testimony of Will Rabenberg the deed was executed by the grantors, his father and mother, in the office of the notary, who was county judge of Marshall county; the deed having been there drafted upon a typewriter by Judge Stavin. The witness further testified that he took the deed after it was executed and carried it to the home of his parents, where he lived with them, and that it was placed in a bureau drawer; that, according to the understanding had at the time, he was to be entitled to the deed [74]*74after lie had made payment of the consideration of $9,600. That consideration was made up of $3,000 as the agreed value of services theretofore performed 'by him on the farm of his father, and $6,600 evidenced by 10 promissory notes of $660 each payable March 24, 1925. It was also understood that the son should care for his parents as long as they lived. The theory of plaintiff in the trial below was that this deed was fabricated and forged shortly before its record on December 17, 1923, and, without a direct finding upon the question of forgery, it is evident from findings, which are somewhat contradictory, and somewhat vague, that the trial court did not consider tlie instrument genuine, according to its purport. O'ne finding is that: “If the deed purporting on its face to be signed1 by Henry J. G. Rabenberg was ever in fact signed by him, the same was executed for the purpose of defrauding, hindering- and delaying creditors in the collection of their claims.”

Not only is the trial court’s doubt of the true execution of the instrument thus expressed, but the deed must have been considered in some manner fabricated to suggest the idea that it was made for the purpose of defrauding creditors. For, according to its purport, it was executed March 24, 1915, 4j4 years before the note of $3,850 was given the plaintiff creditor. Notwithstanding the above-quoted finding, it was further found by the trial court that: “On the 24th day of March 1915 a warranty deed purporting" upon its face to convey the above described real estate to the defendant, Will Rabenberg, for a specified consideration of $9600 and purporting also to be signed by Henry J. G. Rabenberg- and wife, was placed in the possession of defendant, Henry J. G. Rabenberg, and at all times by him kept undisclosed never having been recorded until approximately eight years thereafter and on the. 17th day of December, 1923.”

It is here that we approach the first and most important circumstance of fact in the case. The plaintiff introduced the testimony of two handwriting experts, who, b)' comparison of other signatures with that upon the deed, declared that the deed was not executed by Henry J. G. Rabenberg-; and it is to be granted plaintiff that there is no satisfactory explanation as to the time or occasion when, or the person by whom, the initials “J. G.” were written into the signature. There is also argument that a person in the feeble health of Henry J. G. Rabenberg, whose hands shook and [75]*75trembled, could not have signed in the clear and definite manner in which his signature purports to have been attached to- the deed. Nevertheless, as it seems to us, this theory and testimony of forgery has been unreasonably allowed to color the appellant’s claim of good faith and has produced a serious obliquity of thought. Some motive and reason for a fraudulent act is usually exhibited in connection with the charge of fraud. There was no substantial reason, here, consistent with a fraudulent design, for a forgery to have ■been accomplished. There is'no definite proof that Rabenberg was unable to write his name, with or without the assistance of others, and it is certain that he was able to have signed the deed in 1915 when it purports to- have been executed.

AVe have before us the extraofdinary situation of a debtor being charged with a fraudulent conveyance of his property by deed, which deed, it is said, was not signed by him, but forged. Moreover, that deed, it is found, was in the possession of the grantor-debtor for 8 years. If forgery theré was, it must have been without violence to the wishes of the one whose name was forged — the alleged moving conspirator in a design to defraud his creditors by means of his signature to the deed.

Beneath superficial generalities with respect to the charge of fraud, based largely upon the theory of forgery, there are definite discernible and important circumstances which do not seem to have received that consideration, by the trial court, which we believe they merit.

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Related

State Ex Rel. Counsel for Discipline v. Rokahr
675 N.W.2d 117 (Nebraska Supreme Court, 2004)
Stokes v. Rabenberg
248 N.W. 762 (South Dakota Supreme Court, 1933)

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Bluebook (online)
227 N.W. 466, 56 S.D. 71, 1929 S.D. LEXIS 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stokes-v-rabenberg-sd-1929.