Townsend & Bros. v. Harwell

18 Ala. 301
Supreme Court of Alabama·Decided June 15, 1850·Published·Cited by 14 cases

Opinion

CHILTON, J.

Our opinion must be predicated upon the special verdict of the jury, as set forth in the record, for if they have found the facts wrong, an application should have been made to the primary court to set aside their verdiet. Thus considered, the record presents the sole question, whether the deed of assignment made by a debtor in insolvent circumstances to an honest but insolvent trustee, by which such debtor devotes his property absolutely to the payment of his debts, but which was intended by him to delay, hinder and defraud his creditors, can be upheld as against the plaintiff in attachment, the creditors provided for in said deed never having given their assent to, or claimed any benefit under it. The solution of this question depends upon whether we must presume that the creditors will assent to the deed, and upon the further inquiry whether such assent, either presumed or actual, would make it available as against the plaintiff, who has acquired a lien upon the property, prior to any actual assent.

The doctrine held by this court, in regard to presuming the assent of creditors, is, that such assent will be presumed where the assignment is for their benefit — (Kinnard v. Thompson, 12 Ala. 491; Gazzam v. Points, 4 ib. 374) — but such assignment will not be considered beneficial, unless the deed devotes the property absolutely and under all circumstances to the payment of the debts secured — (Dubose v. Dubose, 7 Ala. 235; Allen v. Montgomery & W. P. R. R. Co. 11 Ala. 437) — nor where it provides for the delay of the creditors secured to be paid.— Lockhart v. Wyatt, 10 Ala. 231; Hodges v. Wyatt, ib. 271. But these principles do not affect the case before us, and we feel confident that no case has been decided by this court where the question here made was involved.

The statute expressly declares all conveyances made to delay, hinder, or defraud creditors, “ to be clearly and utterly void.” — Dig. 254, § 2. The jury have found this conveyance to be of that character, and we must pronounce it void, unless those claiming under it can bring themselves within the exception mentioned in the statute — unless they be bona fide purchasers for valuable consideration. Now we concede, as has often been decided, that a creditor, to whom a debt is justly due, may obtain a conveyance from his debtor for its security, and without parting with the evidence of his debt, or extending the [304] time of payment, or paying any equivalent therefor, will be considered a bona fide purchaser for a valuable consideration, if he accept the conveyance in good faith. We further concede the law to be well settled by the decisions of this court, that fraud on the part of the grantor alone is not sufficient to invalidate the deed, as to creditors who have bona fide accepted it. — Stover v. Herrington, 7 Ala. 142; Hooks v. Anderson, 9 ib. 704; Abercrombie v. Bradford, 16 ib. 560. But these were cases where there was an actual acceptance on the part of the cestuis qve trust., or some of them, of the provision made by the deed for their benefit. In the case of Stover v. Herrington, the former, who claimed under the deed, was a bona fide grantee, or rather mortgagee, and he was held protected, although the mortgagor may have contemplated a fraud. In the case of Anderson v. Hooks, the latter had become bound for the grantor in a large sum, and to secure its payment, he, in good faith on his part, took a conveyance in trust, himself being the grantee. In the case of Abercrombie v. Bradford, the point was incidentally noticed, but in that case, Bradford, the grantee and trustee in the deed, who accepted bona fide its provisions, was a party in interest, being bound for a portion of the debts. Besides, by an examination of the record, it will be seen that several of the creditors provided for had accepted the provision made for their benefit. So that these cases are wholly inapplicable to the point before us. In the case of the Governor, use, &c. v. Campbell, 17 Ala. 566, the point now presented was not raised by the charges. In that case the deed was not per se fraudulent, and the court charged that the jury must infer the assent of the prefered creditors, as the deed was beneficial to them. No charge was asked, nor was any given, that if the jury believed the deed was made to delay, hinder, and defraud creditors, and that no creditor had assented in fact to its provisions, or claimed any benefit under it, that then the law would not. presume their assent to validate such fraudulent deed. In the conduct of a, cause, the respective counsel have the right to demand that the court declare the law as applicable to any phase of the case, which the testimony conduces to establish; and if a proper charge is asked, the court is bound to give it in the language in which it is asked. So in the case just cited, various specific charges were asked, and the court responded to each as the [305] several hypotheses as to the state of the proof were supposed to warrant; but in none of them was the point here raised presented.

Free access — add to your briefcase to read the full text and ask questions with AI

Townsend & Bros. v. Harwell, 18 Ala. 301 (Ala. 1850).

18 Ala. 301 (Townsend & Bros. v. Harwell) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Sandmeyer v. Dakota Fire & Marine Insurance
50 N.W. 353 (South Dakota Supreme Court, 1891)
First National Bank v. Ridenour, Baker & Co.
46 Kan. 718 (Supreme Court of Kansas, 1891)
Truss v. Davidson
90 Ala. 359 (Supreme Court of Alabama, 1890)
Greene v. A. & W. Sprague Manufacturing Co.
52 Conn. 330 (Supreme Court of Connecticut, 1885)
Bradley & Co. v. Ragsdale
64 Ala. 558 (Supreme Court of Alabama, 1879)
McEwen v. Bamberger
71 Tenn. 576 (Tennessee Supreme Court, 1879)
Wilson v. Prewett
30 F. Cas. 156 (U.S. Circuit Court for the District of Northern Alabama, 1878)
Coleman v. Smith
55 Ala. 368 (Supreme Court of Alabama, 1876)
Wyatt v. Evins
52 Ala. 285 (Supreme Court of Alabama, 1875)
Tennessee & Coosa Railroad v. Moore
36 Ala. 371 (Supreme Court of Alabama, 1860)
Green v. Banks
24 Tex. 508 (Texas Supreme Court, 1859)
Baldwin v. Peet, Sims & Co.
22 Tex. 708 (Texas Supreme Court, 1859)
Ashley's Adm'r v. Robinson
29 Ala. 112 (Supreme Court of Alabama, 1856)
Benning v. Nelson
23 Ala. 801 (Supreme Court of Alabama, 1853)