The Bank of the United States v. Elizabeth Lee

38 U.S. 107, 10 L. Ed. 81, 13 Pet. 107, 1839 U.S. LEXIS 419
CourtSupreme Court of the United States
DecidedFebruary 11, 1839
StatusPublished
Cited by44 cases

This text of 38 U.S. 107 (The Bank of the United States v. Elizabeth Lee) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Bank of the United States v. Elizabeth Lee, 38 U.S. 107, 10 L. Ed. 81, 13 Pet. 107, 1839 U.S. LEXIS 419 (1839).

Opinions

Mr. Justice Catron

delivered the opinion of the.Court.—

. The bill alleges, as a principal ground of relief, fraud in fact, iñ inception of the conveyance sought to be set aside': this being denied by the answers, it is incumbent that. fraud in fact should be proved by the complainants; and which,, they insist, is established by the proofs. As the pleadings and- exhibits furnish almost the entire evidence, it becomes material to set them out to a‘ considerable extent. And in extracting the facts, from, which it is supposed tve. are authorized to infer fraud, it. must be done with, reference to the bearing of the local and peculiar laws of Virginia on. the trans-' action. . ' ' '

It appears that, in 1817, Richard Bland Lee, the husband of Elizabeth Lee, the respondent, borrowed from the Bank of the United Stages, at their office of discount át Washington, $6,000 on his note at sixty days, (renewable at the pleasuré of the bank,) and endorsed by Ed. J. Lee and Walter Jones: and further to secure the repayment of the money, executed a deed-of trust for eleven slaves, and sundry household goods, valued at $7,200, to- Richard Smith, the cashier of office of discount, with-power to the trustee to sell iii default of payment, after giving-thirty days’ notice.. The deed also pledged some outstanding claims, not necessary to be noticed, as they proved to be of no material value.. The debt not having been paid, after long indulgence, suit was brought,’and a recovery had, against Richard Bland Lee, and Walter Jones, .one of the endorsers; but no part of the judgment has been satisfied,

In 1834 the president, directors, and company of the bank filed their bill against Edmund J. Lee, Elizabeth Lee, ¿nd Richard Smith, the [111]*111trustee; alleging that Richard Bland Lee died in 1827 intestate; that no one had administered on his estate, and that Elizabeth Lee had converted the Slaves and household goods to her own use. after the death of her husband; that she was executrix in her; own wrong, and bound to pay the debt; but refused to do so, asserting the property pledged to pay the bank debt by her late husband, had been conveyed by him, as early as 1809, to Ed. J. Lee, William Maffit, and Richard Coleman, in trust for the sole and separarte usé of the said Elizabeth; that s^e had exhibited the deed to the complainants, but which they aver was voluntary, fraudulent, and void, as against them, because they were purchasers for a valuable consideration, without notice of such deed; as also creditors of Richard. Bland Lee, the grantor. That the considerations set forth in the deed are not truly stated; but, if truly stated, they are wholly insufficient to give validity to. the same.' That Richard Bland Lee, at the date of the deed in 1809, was largely indebted, and incompetent in law to make such deed for the benefit of his wife and family.

That if the deed was duly executed, and upon legal and adequate consideration when made, yet the same was executed in the commonwealth- of Virginia; that the trustees had never acted under it,' or taken possession of the property embraced in it; but had suffered Richard .Bland Lee, the'grantor, at all times, and without interruption, from the date 'of the deed to the time of- his death, to retain possession of the property, and to use, enjoy, and dispose of the same, and hr’d himself out to the world as the true and absolute owner; and especially, that the trustees had permitted the grantor to bring the slaves and furniture from Virginia to the District of Columbia and. county of Washington, about the year 1814, and there to continue his use and enjoyment of the same, as if he were the absolute, entire, and unqualified owner thereof.

That the deed was never recorded in the county of Washington, nor notice given to the public, or the complainants, of its existence, during the lifetime of Richard Bland Lee, nor.for some years after his death; but he was permitted- to obtain credit and contract- debts upon the faith of his being thé sole and absolute owner of the slaves and goods described in the deed; and permitted to sell and dispose of parts of the same without any assertion of right or title on the part of the trustees or said Elizabeth.; and that Ed. J. Lée, the only surviving trustee, and the said Elizabeth, knew that the complainants had made the loan of the $6,000 to Richard Bland Lee, in the full faith that IS was the real and unqualified owner of the property; and knew he had made and executed the deed of trust to Richard Smith, to secure the repayment of the money; yet they «did not communicate to the complainants the existence of the deed made for the benefit, of the said Elizabeth, during the lifetime of Richard Bland Lee, nor until several years after his death; nor did said Ed. J. Lee, or Elizabeth, intimate in any manner, or give the complainants, or. their trustee, reason to suspect that there was any- defect in the title derived under the deed to Richard Smith; nor that Ed. J. [112]*112Lee, or Elizabeth, had any title or claim, or pretended to have, to the slaves and furniture.

The foregoing allegations present two aspects; 1st, That the deed pi 1809 was fraudulent and void in its inception: and, 2d, That if valid in Virginia, it not having been recorded in the county of Washington, (formerly a part of Maryland,) and the continued possession of the property covered by it haying remained with the grantor, both in Virginia and here, up to the time of his death; was such ¿‘fraud upon creditors of, and purchasers from, Richard Bland Lee, .as to destroy the effect, of the conveyance.

The, deed of 1809, amongst other things, Sets forth that Richard Bland Lee owed Judge Washington $10,034 28; and, as a part of. the consideration, Mrs..Lee had joined her husband in a mortgage' to trustees for Judge Washington’s use, pledging her separate estate to secure the debt. These specific facts the bill does .not set forth; but, by way of interrogatory, asks the defendants to answer, whether the debt mentioned in said deed, as being due to Judge Washington, had ever been paid; by whom, and from what funds; and the respondents are required to produce the deed.

It also appears that the complainants, commenced an action of feplevin against Mrs. Lee for. the slaves and household goods; and which' was, by an agreement of the parties, suspended until the termination of this suit. . ' . .

Ed. J. Lee answers, that the deed of 1809! was executed by. Richard Bland Lee, to himself and others,; as trustees for Elizabeth Lee, the wife of said Richard Bland Lee; that it sets forth the true consideration for the same; that the respondent is the only surviving trustee; that he never did give 'notice to the complainants, pf the existence of the deed; but that he did not know, until shortly before Richard Bland Lee’s death, that he had made the- deed of trust ito Richard Smith; • and which never received respondent’s assent. That he cannot state, from general recollection, how the debt due tp Judge Washington Avas paid;, but it. is-his impression .it was paid' either by stock in the Bank of Alexandria; which belonged to Elizabeth Lee, and was held in trust for her' by her brother Zacheus Collins, deceased; or by a sale of part of the farm called Langley.

Elizabeth Lee answers, that the loan of $6,000 was made.by the bank as charged; but that she was ignorant of the execution of the deed of trust to Richard.

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Bluebook (online)
38 U.S. 107, 10 L. Ed. 81, 13 Pet. 107, 1839 U.S. LEXIS 419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-bank-of-the-united-states-v-elizabeth-lee-scotus-1839.