Tate v. Hoover

26 A.2d 665, 345 Pa. 19, 1942 Pa. LEXIS 455
CourtSupreme Court of Pennsylvania
DecidedApril 13, 1942
DocketAppeal, 116
StatusPublished
Cited by9 cases

This text of 26 A.2d 665 (Tate v. Hoover) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tate v. Hoover, 26 A.2d 665, 345 Pa. 19, 1942 Pa. LEXIS 455 (Pa. 1942).

Opinion

Opinion by

Mr. Justice Maxey,

This is an appeal from a decree ordering the appellant to “surrender and cancel” a deed for certain premises in West Pittston, Luzerne County. The title to these premises were adjudged to be vested in O. M. Tate, Jr., *21 Trustee in Bankruptcy for the creditors of Post and Company, a co-partnership. (This title was subject to a lease of the Socony-Vaeuum Oil Company).

The proceedings were begun by a bill in equity filed by the Trustee in Bankruptcy of Post and Company, alleging that the deed of Martha L. Post (allegedly one of the co-partners of Post and Company), dated December 1,1933, to the premises in question (and reserving a life estate to the grantor, now deceased) “rendered” the grantor “insolvent within the meaning of the Fraudulent Conveyance Act of Pennsylvania and also rendered Post and Company insolvent within the meaning” of that act and that the conveyance “was made with actual intent ... to hinder, delay and defraud the then present creditors of her individual estate and particularly, the then present creditors of the said partnership of Post and Company, bankrupt, to whom she was jointly and severally liable as one of the partners of which the said partnership of Post and Company, bankrupt was composed.”

Frank IT. Post, R. W. Barton and Fred S. Post were members of Post and Company doing business in the City of Knoxville, Tennessee. On November 2, 1911, Frank IT. Post died in Knoxville, without a will. His heirs were his widow, Martha L. Post (his second wife) and three children; Fred, Mrs. J. R. Williams and Helen G. Post, then a minor (later Helen Post Morris), all of Knoxville. The business of Post and Company continued until November 27,1933. In some manner not revealed by the record Barton got out of the partnership. In answer to an interrogatory, Helen Post Morris deposed, that “she [Mrs. Post] inherited it [her interest in the partnership] from my father. After the death of my father, the company was carried on as the partnership of Post and Company with Mrs. Post, Fred Post, Mary Post Williams and myself as partners” but she didn’t “know the provisions of the agreement” and she didn’t “remember the provisions of the agreement” and she didn’t “have the *22 contract.” “Each of ns contributed the shares which we inherited from our father.”- Ered S. Post in his depositions testified: “My father, Frank H. Post, died without a will November 2, 1911. At the time of his death he was a member of Post and Company, which consisted of himself, R. W. Barton and myself. Immediately after his death a new partnership was formed and his interest in the estate was proportioned as declared by law, between his widow, Mrs. Frank Post, Mrs. J. R. Williams, Helen G-. Post, who was a minor at the time, and myself. This partnership continued until the bankruptcy proceedings mentioned above. I found among some old records a statement of the capital invested in Post and Company as of June 30,1923, that Mrs. M. L. Post had invested $4,500. This same statement shows that she was credited with $1,282.00 in profits.” 1

*23 On November 27, 1933, an involuntary petition in bankruptcy was filed, by three of its creditors, against the partnership and Fred S. Post, in the United States District Court for the Eastern District of Tennessee, Northern Division. This petition charged, that Fred S. Post, Mary Post Williams, Helen Post Morris and Mrs. Frank H. Post were engaged in business under the name of Post and Company; that Post and Company owed debts exceeding $1,000; that the petitioners were creditors of Post and Company with claims in excess of $500; that Post and Company was insolvent and that it conceded its inability to pay its debts and its willingness to be adjudged a bankrupt; and prayed “service of the petition with subpoena be made upon Post and Company and Fred S. Post as provided in Act of Congress relating to bankruptcy and Post and Company and Fred S. Post be adjudged bankrupts.” Admittedly no process or “petition with subpoena” or any notice of these proceedings was ever served upon Martha L. Post individually or otherwise. 2

On December 19, 1933, the partnership was adjudicated a bankrupt. This bankruptcy proceeding took the regular course; Post and Company, the bankrupt, filed schedules of its debts and assets; the first meeting of creditors was held and a trustee was elected for Post and Company, the bankrupt, and its creditors duly filed claims amounting to $19,515.74 against this estate, which were allowed. The bankrupt estate was administered and paid dividends to the unsecured creditors of the bankrupt amounting to $2,746.22, leaving a balance due to the unsecured creditors of $16,769.52. On February 7, 1935, after audit of the Trustee’s final account the al *24 lowances were made, tlie trustee discharged and the case was marked “closed”. While this estate was being administered, Fred S. Post as an individual, under the creditors’ petition, was adjudged a bankrupt on December 19, 1933, and his estate was administered and he was discharged on May 5, 1934. On January 4, 1934, Helen Post Morris, as an individual, petitioned for her adjudication and she was adjudged a bankrupt and on June 2, 1934, she was discharged from all debts and claims. Neither Mary Post Williams nor Martha L. Post were ever adjudicated bankrupts.

Martha L. Post, in her lifetime, owned the Luzerne County, Pennsylvania, real estate now in controversy. On December 6, 1933, there was recorded in Luzerne County the above mentioned deed for this real estate, from Martha L. Post to her niece, Rose McCabe Hoover. The consideration recited was $1.00. The bill filed charged that this was a gift; Rose McCabe Hoover’s answer denied this and alleged that the consideration was an antecedent and preexisting indebtedness for money advanced and for board and lodging furnished her after an operation in Baltimore and for three months of every year from 1927 to 1934, and also for taking care of the property. This denial also had testimonial support. Mrs. Post, according to Mrs. Hoover’s testimony, “figured” the property “was worth about $5,000.”

Martha L. Post died testate in January 1935 in Knox County, Tennessee, and Helen Post Morris was appointed administratrix c. t. a. of the estate. Her estate showed individual debts amounting to $4,834.00 and assets of $6,039.42.

On November 9, 1935, the Reconstruction Finance Corporation, one of the creditors of Post and Company, filed a petition in the former bankruptcy proceedings against the partnership under Section 11(8) of the Bankruptcy Act, praying for an order reopening the estate of Post and Company for the purpose of further administration of this real estate alleged to have been fraudu *25 lently conveyed by Mrs. Post to Mrs. Hoover. The petition was allowed, the matter was again referred to the Referee, a meeting of creditors again called, a trustee elected, and at this meeting, the referee directed that equity proceedings be instituted. These proceedings were instituted against the Socony-Vacuum Oil Company, a tenant, Henry C. Hoover, and Rose McCabe Hoover, his wife.

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Bluebook (online)
26 A.2d 665, 345 Pa. 19, 1942 Pa. LEXIS 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tate-v-hoover-pa-1942.