Wilson v. Spear

68 Vt. 145
CourtSupreme Court of Vermont
DecidedOctober 15, 1894
StatusPublished
Cited by18 cases

This text of 68 Vt. 145 (Wilson v. Spear) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilson v. Spear, 68 Vt. 145 (Vt. 1894).

Opinion

MUNSON, J.

On the 28th of November, 1885, the de[147]*147fendant, George J. Spear, received from one Parkhurst a deed of one undivided half of his farm. In the fall of 1887, said Spear purchased the other undivided half of the farm, and had Parkhurst convey it to his wife, the defendant Eva B. Spear. The consideration for both conveyances was paid by George J. Spear from his own means. On the 31st day of December, 1887, George J. Spear executed to one Beach a deed of the undivided half conveyed him by Parkhurst, and on the 16th day of January, 1888, Beach conveyed the same to Eva B. Spear.

The master finds that the defendant George had this property conveyed to his wife, the defendant Eva, “for the reason that he thought the same would be safer in her hands than in his own from attachment by his creditors,” of whom the orator was one. This is a sufficient finding that the transfer was made with intent to defraud the orator. There is no finding that connects the defendant Eva with the fraudulent purpose of her husband. Upon the question of consideration, the master says he is “unable to find” that the defendant Eva paid anything for the farm, which cannot of itself be treated as an affirmative finding that nothing was paid. But, as the master says in this connection that the defendant husband had the same conveyed to his wife to keep it from his creditors, it is thought by a majority of the court that the payment of a consideration is fairly negatived. The master also reports certain facts in regard to the grantor’s indebtedness and unconveyed property which it will not be necessary to consider. It appears that a part of the orator’s account accrued after the conveyances were made, but the case will first be considered as if the entire demand were pre-existing. We have then the case of a voluntary conveyance, executed with an actual intent to defraud an existing creditor, to be passed upon without reference to the amount and availability of the property retained.

[148]*148In disposing of the question stated, it seems desirable to make some reference to the cases, in view of the frequent failure to distinguish carefully between fraudulent conveyances upon consideration and conveyances without consideration ; and, in the case of voluntary conveyances, between those which rest upon a legal inference of fraud and those where an actual fraudulent intent is shown. When the conveyance is without valuable consideration, the creditor may avoid it for the fraud of the grantor alone. Foster v. Foster, 56 Vt. 540, 548. It is only when there is a valuable consideration that fraud on the part of the grantee is essential. Such were the cases of Root v. Reynolds, 32 Vt. 139; Leach v. Wood, 41 Vt. 670; Nichols v. Nichols, 61 Vt. 426. The fraud of a voluntary grantor may be an actual fraudulent purpose, or the fraud which the law imputes to him from the condition of his estate and the necessary consequence of his act. When the grantor is found to have conveyed for the express purpose of defrauding his creditors, the condition of his estate is immaterial. Wadsworth v. Williams, 100 Mass. 126; Botsford v. Beers, 11 Conn. 369; Gray v. Chase, 57 Me. 558; Hager v. Shindler, 29 Cal. 47 ; Westerman v. Westerman, 25 O. St. 500; Gormley v. Potter, 29 O. St. 597 ; Vasser v. Henderson, 40 Miss. 519 ; Edmunds v. Mister, 58 Miss. 765. It is only in cases where no actual fraud appears that the conveyance can be sustained on the ground that the grantor retained sufficient property to satisfjr his debts. Of this character were the cases of Brackett v. Wait, 4 Vt. 389 ; Dewey v. Long, 25 Vt. 564; Church v. Chapin, 35 Vt. 223 ; Wilbur v. Nichols, 61 Vt. 432. It appears then that the orator, as an antecedent creditor, can avoid these conveyances without other findings than that they were designed by the grantor to defraud his creditors, and were without consideration.

Upon the facts reported, the disposition of the case is not affected by the finding that a part of the account was for [149]*149services rendered after the conveyances were made. The charges were for the orator’s services and disbursements as attorney in a single suit. If the conveyance was designed to defraud the orator, it was an attempt to defeat the collection of his compensation for a continuing service, rendered and to be rendered under an employment already given. It is possible that in a case of this character the entire account should be treated as pre-existing. If this would not be permissible, there is authority for saying that the orator could have relief to the extent of the pre-existing charges, notwithstanding the judgment was for more. Henderson v. Henderson, 133 Pa. St. 399; 19 Am. St. 650. It has been held, however, that one who takes a judgment covering both antecedent and subsequent claims must be treated as a subsequent creditor as to all. Usher v. Hazeltine, 5 Greenl. 471; 17 Am. Dec. 253. But, if enough appears to avoid the conveyance as to subsequent creditors, it will not be necessary to consider the questions suggested. It is said in McLane v. Johnson, 43 Vt. 48 (55), that a conveyance without consideration, and with fraudulent intent, is invalid as to both existing and subsequent creditors. But that was a case in which the fraudulent intent existed in both grantor and grantee. It is by no means universally conceded that a voluntary conveyance to an innocent grantee, void as to existing creditors, is necessarily void as to all subsequent creditors. 14 Am. St. 750, note. But a consideration of this question will be unnecessary, if it sufficiently appears that there was an actual intent to prevent the collection of the grantor’s subsequent account. In view of the character of the claim, the finding of an intent to defraud the orator must be held to apply to both parts of his demand. We have then a finding of an intent to defraud the orator as a subsequent creditor. A voluntary conveyance, made with an intent on .the part of the grantor to-[150]*150defraud subsequent creditors, is void as to such creditors, without proof of fraud on the part of the grantee. Laughton v. Harden, 68 Me. 208. And there having been this actual intent to defraud the orator of his claim for the services to be thereafter rendered, the deed would be void as against such claim, notwithstanding the possession of other property.

Nor is a different disposition of the case required by the fact that the conveyance was to the grantor’s wife. It is true that a voluntary conveyance to wife or child, which does not. impair the grantor’s ability to pay his existing debts, and is without fraudulent design, will be sustained'. Brackett v. Wait, 4 Vt. 389; Jones v. Clifton, 11 Ott. 225. But a deed executed in actual fraud cannot be sustained on the ground that the grantee is one whom it is the grantor’s duty to provide for. These conveyances were not designed to effect a settlement, but to perpetrate a fraud. The findings are inconsistent with the theory of a gift to the wife. The property was transferred to the wife because the husband thought it would be safer in her name. The actual fraudulent purpose vitiates the conveyance, notwithstanding the grantor’s possession of other property, the innocence of the grantee, and the consideration of affection.

The finding that George

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Bluebook (online)
68 Vt. 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-spear-vt-1894.