Werborn's Adm'r v. Kahn

93 Ala. 201
CourtSupreme Court of Alabama
DecidedNovember 15, 1890
StatusPublished
Cited by12 cases

This text of 93 Ala. 201 (Werborn's Adm'r v. Kahn) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Werborn's Adm'r v. Kahn, 93 Ala. 201 (Ala. 1890).

Opinion

CLOPTON, J.

— -The equity of the bill, which is filed by appellee, is sustainable on complainant’s right to contribution. In respect to this matter, the case made is, complainant and George Werborn, an intestate of appellant, were co-sureties on the guardian bond of Adolph Proskauer, and, as such sure- ties, became liable for the amount of a decree — about sixteen thousand dollars — rendered in the Probate Court, December 27, 1886, against Proskauer on the final settlement of his guardianship. In May, 1889, complainant, in compromise and satisfaction of the decree, paid the succeeding guardian the sum of forty-nine hundred dollars, and obtained a full acquittance and discharge of all the obligors on the bond from further liability under the decree, or on the bond. The compromise was reported to, and confirmed by the court appointing the guardian with whom it was made, and satisfaction of the decree was entered on the record. If these allegations be true, complainant has discharged the entire liability against himself and his co-surety, so that the latter could never be required to pay anything to a succeeding guardian, or to the ward. This clearly entitles complainant, to contribution from the co-surety, to the extent of a moiety of the amount paid to obtain the release and'discharge; and he may come into equity to enforce and recover it, notwithstanding there may be a remedy at law. This rule is well settled. — Pegram v. Riley, 88 Ala. 399; Stallworth v. Preslar, 34 Ala. 505; Hanley v. Heflin, 84 Ala. 600. The fact that complainant satisfied the decree, and obtained the discharge, by the payment of a sum less than one-third of its entire amount, does not affect his right to contribution. The co-surety can not complain that the amount of his liability is thereby reduced to less than his share of the original demand; nor can he take the benefit of complainant’s compromise and settlement and repudiate its burdens. — Stallworth v. Preslar, supra.

The contention of defendant — that complainant forced the guardian to compromise, by withholding his own property from appropriation to the satisfaction of the decree, and avail[205]*205ing himself of Werborn’s sale of his property, which he now alleges to be fraudulent — is not supported by any matter apparent on the face of the bill. A motion to dismiss for want of equity, as well as a demurrer, must be based on the case made by the bill. - On demurrer and such motion, the answer, though filed, is not before the court, except so far as the demurrer may, under the statute, be incorporated therein; and no new fact set up in evidence can be looked to. This is matter which arises on the final hearing. Neither will we consider complainant’s right to contribution in reference to the sum paid an attorney for his services in effecting the settlement, or to the creditors of the Alabama Gold Life Insurance Company on account of shares of the stock of the corporation, which he claims to have redeemed for the benefit of himself and Werborn; there being no demurrer going specially to such parts of the bill.

For the enforcement and paymenl of the amount which may be due complainant, the bill seeks to reach and subject property alleged to have been fraudulently sold and conveyed by Werborn. It avers that, after proceedings were commenced in the Probate Court, to compel Proskauer to make a final settlement of his guardianship, and before the rendition of the decree, George Werborn conveyed by written instrument to his brother, Charles Werborn, substantially all his property, consisting of his entire stock of goods, choses in action, household and office furniture, and other mentioned articles, for the fraudulent purpose of preventing the same from being subjected for the payment of whatever decree might be rendered against Proskauer as guardian. The facts, in which the fraud is supposed to consist, are specifically stated. To a proper understanding of the question involved in this aspect of the bill, it should be stated that defendant is the duly appointed administrator of the estates of both George and Charles Werborn. The right of complainant to file the bill, for the purpose of reaching and subjecting to his demand property fraudulently conveyed by George Werborn in his life-time, does not depend upon the effect and construction of section 3544 of the Code, which authorizes a creditor without a lien to file a bill in chancery to subject for the- payment of his debt property fraudulently conveyed by his debtor. Before the statute was enacted, this court asserted the principle, that a creditor of a deceased debtor, without having obtained judgment and exhausting his legal remedies, may come into equity to subject to his demand property fraudulently conveyed by the debtor while in life, there being a deficiency of legal assets. Commencing with Pharis v. Leachman, 20 Ala. [206]*206662, and extending to the present time, this court has uniformly maintained bills of this character. — Houston v. Blackman, 66 Ala. 559. The equity of bills of this class rests on the principle, that when the legal assets are insufficient, and the administrator, because bound by the fraud of his intestate, can not administer the property subject to the claims of creditors, the Court of Chancery only can grant full and proper relief. Such bills depend upon the original and primary jurisdiction of courts of equity in matters of administration and marshalling the assets of the estate for the enforcement of the claims of creditors — a jurisdiction distinct and independent of that to which creditors of a living debtor, whose claims are not connected with an administration, can resort. Lehman v. Meyer, 67 Ala. 896. The bill avers a deficiency of legal assets, which is all that is required to impart equity. Battle v. Reid, 68 Ala. 149.

Complainant’s right to contribution did not arise until payment of the sum received in full satisfaction of the decree, which was in May, 1889. The causes of demurrer based on the laches of complainant, and- the statute of limitations of one year, are not. well founded. The possession of a fraudulent'vendee of personal property must continue, under the statute of limitations, for six years, to give him title as against a creditor of the vendor. — Snodgrass v. Bank of Decatur, 25 Ala. 161.

Two days after the bill was filed, the register, on application of complainant, appointed a receiver without notice to defendant. From his order, defendant took an appeal to the chancellor, who, after hearing the same, decreed that the appointment of a, receiver by the register be vacated and annulled, unless complainant executed, within three days, a bond with good and sufficient sureties, in the sum of seven thousand dollars, payable to, and approved by the register, and conditioned that, if complainant failed to subject the property to his demand, he will pay all such costs and damages which any person has sustained, or may sustain, from the appointment or continuance of a receiver. By a subsequent order, the time for filing the bond was extended a few days longer, and the amount reduced to six thousand dollars. The required bond having been executed, the chancellor ordered “that the receivership heretofore granted in said cause be, and the same is hereby, continued until the further order of the court.”

It is insisted, that the order of the chancellor should be reversed, and the receiver discharged, for the reason, that he was appointed by the register without notice to defendant, and without a good reason being shown for failure to give the [207]*207same.

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Bluebook (online)
93 Ala. 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/werborns-admr-v-kahn-ala-1890.