Tompkins' Ex'r v. Stephens

10 W. Va. 156, 1877 W. Va. LEXIS 72
West Virginia Supreme Court·Decided April 28, 1877·Published·Cited by 10 cases

Opinion

Green, President :

William Tompkins, in 1855, instituted a suit in chancery in the circuit court of Mason county, to set aside as fraudulent a certain conveyance made by Abraham Wil[158] liams and wife fo his co-pai’tncr and brother-in-law, William J. Stephens, on August 10, 1852, and to subject his interest in the real and personal property thereby conveyed, to a judgment obtained by the plaintiff against him. The bill alleges that in 1850 Williams and Stephens formed a partnership for the manufacture of salt at West Columbia, in Mason county, and purchased a large amount of property, both real and personal ; that one Friend, also claimed to be a partner, and was entitled to one third interest in this partnership. This was denied by Stephens and Williams; and that Friend instituted a chancery suit in Mason circuit to establish his interest; a copy of the record of this suit is filed with the bill; that said firm built a salt furnace on their property, bored salt wells, built out-houses, opened coal banks, and placed on said property all the necessary fixtures and erections for the manufacture of salt ; that the said firm also had a store house on their said property, and during the years 1851, 1852, and up to August, 1853, were engaged in making salt and carrying on.the business of merchandizing. The bill fm-ther alleges that Williams being much embarrassed and really insolvent, to defraud his creditors generally, and the plaintiff particularly, conveyed all his interest in said property, real and personal, to his brother-in-law and partner, William J. Stephens, for the protended consideration of $9,866, on August 10, 1852; that Stephens was cognizant of this fraud and was aiding therein; that no part of this pretended consideration was ever paid ; that Stephens was not in a condition to make this purchase, and had no means of paying the pretended consideration ; that this pretended consideration was grossly inadequate, both parties regarding the interest of Williams then as worth much more ; that Stephens, with the consent of Williams, in July and .August, 1853, sold said property, real and personal, for $64,400; that of this purchase money Williams had collected $23,600, and had received an order to collect $10,250 more; that the [159] debts of the firm of Williams & Stephens were inconsiderable, as appears by an exhibit filed by Stephens in said chancery suit brought by Friend. And the plaintiff charges that a portion of the alleged debts in this exhibit are not justly due, specifying these debts.

To this bill Stephens & Williams filed separate answers. The answer of Stephens has been lost or taken from the papers of the suit, but at what time, in no manner appears, and it is now admitted that it can not be found or restored. The answer of Williams simply refers to -and adopts this answer of Stephens, now lost, and denies in general terms all fraud, and says that the $9,866 was paid by the giving of negotiable notes, which he has transferred.

A large number of depositions were taken by both parties, and on the 23d day of April, 1858, the court being ot opinion that the main question in this cause is one pi’oper for a trial by jury, it was adjudged, ordered and decreed that an issue be, made up and tried by a jury at the bar of this court, to ascertain whether or not the deed of conveyance from Abraham Williams and Lucy E., his wife, to William J. Stephens, dated the 10th day of August, 1852, was made and executed on the part of said Abraham Williams for the purpose of delaying, hindering and defrauding his creditors, and whether said William J. Stephens, in receiving said conveyance, was cognizant of and participating in said fraudulent purpose of the said Abraham Williams, and upon the trial of this issue, the bill of the complainant and the answer of the defendants, William J. Stephens and Abraham Williams, may be read for the purpose of explaining the pretensions and claims of the respective parties; and the depositions taken and filed in the cause may be read in evidence in the trial of the said issue, provided the witnesses arc out of the commonwealth or unable to attend personally, from sickness or other infirmity.

In ordering the issue, the defendants, by their counsel, claimed that the answers of William J. Stephens and [160] Williams, when read before the jury, on the trial of issue, should have the same effect as they would be entitled to in a court of equity, when read by the Chancellor, which the court declined 10 direct/7

Accompanying this decree was an opinion of Judge Summers, which sufficiently shows the character of the evidence then before the court, and the nature of the controversy. The following is a copy of this opinion :

“Tompkins obtained judgment in the Mason circuit court at October term, 1854, against Abraham Williams, for $4,744.88 with interest and costs. Execution on the judgment returned no property found. He filed his bill at March rules, 1855, charging that Williams was partner with Stephens and Friend in the West Columbia salt property; that he had made a pretended sale of his interest in the concern to Stephens; that this was either intended to hinder and defraud his creditors; that Stephens was privy to Williams7 purpose and design, and that Williams had taken the same on time as before, showing the sale to have been a sham. He asks that Williams7 interest be subjected to the judgment, or that if the sale be valid, a sufficient amount of the unpaid purchase money be appropriated to its payment. Williams and Stephens both deny fraud ; allege bona fide sale. They say that the purchase money has been paid by Stephens to Williams in negotiable paper, which was put into circulation and negotiated.

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Tompkins' Ex'r v. Stephens, 10 W. Va. 156, 1877 W. Va. LEXIS 72 (W. Va. 1877).

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