Tebbs v. Lee

76 Va. 744, 1882 Va. LEXIS 75
CourtSupreme Court of Virginia
DecidedOctober 12, 1882
StatusPublished
Cited by15 cases

This text of 76 Va. 744 (Tebbs v. Lee) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tebbs v. Lee, 76 Va. 744, 1882 Va. LEXIS 75 (Va. 1882).

Opinion

Anderson, J.,

delivered the opinion of the court.

This is an appeal from two decrees pronounced by the circuit court of Clarke county in the causes of Marshall v. Lee, and Hilleary, Willson and Johnson v. Same, &c., which were heard together. The first is a lien creditor’s suit, and [746]*746the second is a suit brought by the plaintiffs against C. S. Lee and Margaret R., his wife, and others, upon a note executed by C. S. Lee and Mrs. Margaret R. Lee to complainants. The bill charges that a deed conveying certain property to trustees for the separate use of Mrs. Lee, conveyed in part property which belonged to C. S. Lee, and to that extent was made without valuable consideration, and was voluntary, and void as to the creditors of C. S. Lee. And so far as it was not void, claimed that the property was liable as the'separate estate of Mrs. Lee, to the payment of the debt due the complainants.

The complainants, by an amended bill, charged that said deed, so far as it conveyed property of C. 8. Lee, was made with intent to hinder, delay, and defraud-his creditors.

The circuit court by its decree of November, 1878, held that the note due Hilleary, Wilson & Johnson, was not a charge upon the separate property of Mrs. Lee, which is .the subject of appellant’s third assignment of error, and by the decree of 9th of November, 1880, dismissed complainant’s bill, with costs.

On the 13th of November, 1879, Miss A. L. Tebbs filed her petition asking to be made a party plaintiff in this suit, representing that she is a large creditor of C. 8. Lee, and that her debt, secured by a deed of trust on tract of land on which C. 8. Lee resides, has been regularly audited in the suit of Marshall v. Lee, in which there has been taken an order of sale, and that she is apprehensive that the proceeds of the sale of said tract will not be sufficient to satisfy her.said debt. And she prays that she may be made a party plaintiff in the cause of Hilleary, Willson & Johnson v. C. 8. Lee and wife and others, and that any residue of her debt not satisfied out of the proceeds aforesaid may be satisfied out of the funds settled upon Mrs. Lee mentioned in said suit.

The court is of opinion that the claim of the appellants, [747]*747Hilleary, Willson & Johnson, not being of an amount sufficient to give this court jurisdiction—the same with interest at the date of the final decree, not amounting to $500— and being a separate and distinct claim from that of Miss Tebbs, cannot be helped by her uniting with them in the appeal—as to them the appeal must be dismissed as improvidently allowed (Umbarger v. Watts, 25 Gratt. 167; Gage v. Crockett, 27 Gratt. 735)—but that Miss Tebbs’ right of appeal is not affected by such dismission, and the court will now proceed to consider both causes together upon her appeal; and will consider the assignments of error in their order.

The first assignment is, that there is error in the order of the 9th of November, 1880, in not setting aside the post-nuptial settlement made by C. S. Lee on his wife, and in dismissing the bill of Hilleary, Willson & Johnson. This assignment will be considered so far as Miss Tebbs claims to be aggrieved by the order complained of. The ground as she alleges in her petition for appeal, in asking to be made a party plaintiff in said suit, was to have the settlement made by the deed “from William B. Page to McDonald & McCormick, trustees, set aside as being voluntary and fraudulent.”

The funds referred to as settled upon Mrs. Lee were tbe proceeds of the salé of her undivided interest of one-sixth in a tract of about 520 acres of land, which was devised to her by her father, in which it seems to have been understood and conceded by her that her husband had a life estate by the curtesy. Her husband, whose indebtedness then exceeded the value of his property, united with her in the sale and conveyance by deed of the 23d of March, 1875, to William B. Page, of her said undivided interest in said tract of land, including his life estate, for the consideration of twenty shares of the Clarke Building Fund Association, ten shares of the Bank of Berryville, and his [748]*748bond for $386, valued together at $3,886, which funds the-said Page, pursuant to the agreement and understanding of the parties (for it was all one and the same transaction), cotemporaneously granted and conveyed to McCormick & McDonald, trustees, upon the express trust that they shall strictly apply any moneys they may raise from any of said stocks, whether from dividends of the bank stock, from redemption or sale of either of said stocks, or from the proceeds of said bond, first to the discharge in whole or pro tanto of the judgments of the circuit and county courts-of Clarke county, which are liens upon the life estate of C. S. Lee in his wife’s said land, or to the liquidation and discharge of any other liens, voluntary or otherwise, upon said life estate, arising from the indebtedness of said C. S. Lee; “ and any excess of said stock, or of the proceeds of the same, or of the proceeds of the bond, after the discharge of the liens aforesaid, shall be held by the said trustees subject to any appointment which the said Margaret E. may make in writing addressed to the said trustees.”

The court is of opinion that this was not a settlement by the husband on the wife. There does not appear to have been any intention of a settlement. The intention was on the part of C. S. Lee to sell his life estate. He was willing to sell it for a price which would be sufficient to satisfy and discharge the debts that encumbered it. He evidently did not think it was worth more. He probably then did not think it was worth that much, as his near neighbors did not think it was, who knew the property well. But he was not willing to sell for less than the debts which were a lien upon it. He had no other means of paying those debts, and his life estate was bound for them anyhow. William B. Page was willing to give the stocks and his bond before mentioned for a complete title. C. S. Lee was willing to sell him his life estate, and join in the deed [749]*749with his wife, conveying to him a complete title to her undivided share of the tract of land called Mansfield. He probably at that time did not know the amount of his debts which were a charge upon his life estate. They were not audited by the master and reported to the court in the ■creditor’s suit aforesaid until nearly a year afterwards. But he was satisfied that his life estate was not worth more "than the amount of debts charged upon it, if as much; and if not as much, they would still have to be paid out of it, .as he had no other means to pay them, he agreed to unite in the conveyance on the consideration that the stocks and the purchaser’s bond aforesaid should be put in the hands of trustees, upon the express trust that they should be first applied to the payment of his said debts, and that whatever balance remained should be held by the trustees subject to the order of Mrs. Lee in writing for her separate use. And Mrs. Lee was willing, under the circumstances, to take for her interest the balance which might remain of the stocks and the purchaser’s bond, and to join in the conveyance.

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Bluebook (online)
76 Va. 744, 1882 Va. LEXIS 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tebbs-v-lee-va-1882.