Stuart v. Neely

40 S.E. 441, 50 W. Va. 508, 1901 W. Va. LEXIS 140
CourtWest Virginia Supreme Court
DecidedDecember 14, 1901
StatusPublished
Cited by2 cases

This text of 40 S.E. 441 (Stuart v. Neely) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stuart v. Neely, 40 S.E. 441, 50 W. Va. 508, 1901 W. Va. LEXIS 140 (W. Va. 1901).

Opinion

DeNT, Judge:

Thomas E. Davis and Jacob Martin, executors of the last will and testament of A. S. Core, deceased, and Nannie N. Neely, appeal from a decree of the circuit court of Doddridge County entered on the 25th day of July, 1898, in certain consolidated suits having for their object the settlement of the estate of Floyd Neely, deceased.

Appellants Davis and Martin complain because the decree holds valid the deed made by Floyd Neely to his daughter, Annie M. Neely, on the 5th day of October, 1895, conveying to her lot No. 18 in the town of West Dnion in consideration of the sum of three thousand seventy-six dollars and fifty cents for her work and services, care and attention performed by her for her father and sisters after the death of his first wife, which occurred the fifth day of March, 1876, covering a period of nineteen year's, the compensation being arrived at at an average rate of one hundred dollars per year with interest added.

The evidence shows that the first Mrs. Neely died on the 5th day of March, 1876, leaving six daughters, of whom Annie was the eldest and all of whom were under age; that Annie at the instance of her father, although she had prepared herself to be a teacher, assumed charge and management of the Household [510]*510and continued so until the second marriage of her father in 1883. This marriage proved to be very unhappy. The stepmother after several attempts to live peaceably with her husband finally returned to her friends in Parkersburg in November, 1886. She had been away at numerous times between these dates. For over nine years afterwards Annie remained the head of the household and governess for the children on promise often repeated by her father that he would compensate her for her services, which finally took the form of a promise that he would deed her the home property in consideration of her services. This he did shortly before his death. She'in the meantime had the offer of lucrative positions as a teacher which she was compelled to decline owing to her engagement with her father. It is clearly established beyond dispute that after his second marriage, almost to the day of his death, Floyd Neely was an habitual drinker, quarrelsome, abusive and disagreeable to get along with. So much so that his second wife could not live with him. Tet his daughter Annie remained and looked after the household, himself and his children, her sisters. At this she has spent the better part of her life, and probably has endured many things that money could not possibly compensate. There is no doubt, therefore, that she furnished full consideration for the deed. No attempt was made to show the value of the property or that the consideration was inadequate. "The claim is that the deed was voluntary and made with intent to dela}r, hinder and defraud appellants. Undoubtedly the consideration was full and the deed not voluntary. And while the effect thereof is to delay, hinder and prevent the application of the property to a certain extent to the payment of the appellant’s debt, yet it was undoubtedly made with the sole intent to pay an obligation which the father considered he justly owed to his daughter. The question then is whether a parent, who is indebted to others, can convey property to a child to whom he is indebted for services rendered without being adjudged guilty of an intent to delay, hinder and defraud other creditors? The authorities hold that he may do so, but that all such transactions are subject to careful investigation and will not be upheld unless entirely free from fraud. Knight v. Capito, 32 W. Va. 203. What Floyd Neely did on this occasion he did openly and above board and wrote the purpose thereof on the face of his deed. He also knew that in doing so he was merely giving his daughter a [511]*511preference which at the instance of any of his creditors in time could be adjudged unlawful and the property could be sold and the proceeds be divided pro rata among all his unsecured creditors. So he was only attempting to prefer his daughter subject to the concurrence of his other creditors, they having four months after the deed was admitted to record "to have it avoided as a preference and held for the benefit of all creditors willing to attack it. Wilson v. Carrico, decided at this term.

Hence his deed could not operate to delay, hinder and defraud his creditors without their assent except as to a pro rata dividend which his grantee might receive out of the proceeds of the property, which compared with the other debts and arising from a special sale, would be trivial in amount,

The deed was promptly recorded and the appellants seemingly assenting thereto as a just preference, did not attack it. But after the four months had expired, they assail it as fraudulent. Since the enactment of the statute avoiding unlawful preferences by insolvent debtors at the instance of creditors not preferred, the courts are no longer justified to the same strictness in adjudging such deeds made with intent to delay, hinder and defraud, for the reason that they no longer so operate unless the creditors not preferred silently acquiesce therein. Formerly the courts would go a great way to seize badges of fraud and set aside conveyances highly meritorious for the reason that the debtor had shown an undue preference and partiality in total disregard of his other creditors. Now under the law at their own instance the unpreferred can bo placed on an equality with the preferred, and therefore they have less reason to complain unless by lack of the diligence the law requires or assent, they lose their equality. Such loss must be attributed to their own laches or acquiescence, and not to the deed of the debtor. These appellants had they applied in time had the right to share equally, not dollar for dollar, but pro rata, in the property conveyed, with the grantee Annie M. Neely and their debt being many times more than hers, would have taken the bulk of the property and left her but a small portion thereof. They certainly cannot claim that as to this large portion which they might have received, the deed delayed, hindered and defrauded them. They could have had it for the asking. They did not do so, and now it being lost by their own negligence they ask, partly because thereof, the court give them the whole property. The main bulk of the ser[512]*512■vices rendered by Annie M. Neely was during the last nine years, when her father’s wife could not live with him because of his dissipation. She was then far beyond her majority. Before she was twenty-one he was presumably entitled to her services, but he had the right to pay her therefor as an inducement to keep her at home. It being a continuing contract, the statute of limitations would not appty, for she was not to have the property until she rendered services equivalent to its value. Cann v. Cann, 40 W. Va. 138. All he deeded her was the reversion, for he retained a life estate in the property. Besides there was a vendor’s lien on the property, which she had to pay off out of the money received through a gift from her uncle. Nor is the value of the property shown. It may be much less than the consideration named. It cannot be greater or the appellants would have so proved. The consideration may be in part voluntary, and yet the legal consideration may be .more than ample to cover the value of the property.

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Bluebook (online)
40 S.E. 441, 50 W. Va. 508, 1901 W. Va. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stuart-v-neely-wva-1901.