Yates v. Law

9 S.E. 508, 86 Va. 117, 1889 Va. LEXIS 17
CourtSupreme Court of Virginia
DecidedMay 2, 1889
StatusPublished
Cited by20 cases

This text of 9 S.E. 508 (Yates v. Law) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yates v. Law, 9 S.E. 508, 86 Va. 117, 1889 Va. LEXIS 17 (Va. 1889).

Opinion

Lewis, P.,

delivered the opinion of the court.

This is an appeal from a decree of the corporation court of the town of Danville. The record discloses the following facts:

In 1878 ~W. T. Law obtained from George Price a lease of certain property for ten years at an annual rent of $600 and the payment of all taxes assessed on the property, and took the lease to himself as “agent of P. B. Law, trustee for Sarah J. Law,” who was the wife of the said W. T. Law. The property so leased was a warehouse in the town of Danville, used for the sale of tobacco, and much capital was necessary and many employees were required for the conduct of the business.

W. T. Law, after acquiring Ihe lease, admitted Lewis A. Yates, the appellant’s intestate, as a partner or a half owner, and some months afterwards they sub-let the property at a considerable profit. Law and Yates, for seven years thereafter, jointly managed and controlled the lease, and equally shared and divided the profits between them. Yates died in February, 1885, and after his death Law refused to account any longer for Yates’s part of the profits of the lease.

Shortly before the latter’s death, decrees were rendered by the said corporation court against Law and Yates for individual liabilities incurred by them, as executors and trustees under the will of George Price, deceased, for a considerable amount. Law has failed to pay anything on account of these decrees, and has left the burden to be borne by Yates’s estate.

The present suit was brought by Yates’s administrator for an account of rents and profits, and to have the residue, after paying the rent due to Price’s estate, applied, first, to the payment of the above-mentioned decree, and then one half of the balance paid to Yates’s estate. The bill charges that Law is insolvent, and that he had collected and appropriated to his own use the entire profits of the lease since Yates’s death, and the prayer of the bill is for an injunction and a receiver, and [119]*119that the rents may be collected, and properly applied under the direction of the court.

W. T. Law, P. B. Law, trustee, and Sarah J. Law are made defendants to the suit, and upon the filing of the hill an injunction was awarded. The defendants demurred, and also answered. In their answer they admit the insolvency of W. T. Law,.but claim that the lease is the separate estate of the wife, Sarah J. Law. Depositions were taken, and when the cause came on to be heard, the bill was dismissed by the decree complained of.

The application of a few well-settled and familiar principles to the case, as disclosed by the record, will suffice to show that this decree is erroneous.

In a long line of cases, beginning with Blow v. Maynard, 2 Leigh, 29, this court has decided, with respect to post-nuptial settlements, that although such a settlement will be supported where it appears to have been made in execution of a fair contract, founded upon a valuable consideration; yet, from the relative situation of the parties and the convenient cover which such settlements afford a debtor to protect his property and impose upon the world, they are always watched with jealousy. Every such settlement, therefore, where the settler is indebted, is, as against his existing creditors, presumed to be voluntary and fraudulent, and will be so declared, unless those claiming under it can show the contrary; and this must be done, if at all, by legal and disinterested evidence, their own answers not being evidence in their favor, where no discovery, by way of evidence is sought of them. William and Mary College, v. Powell, 12 Gratt., 372; Price v. Thrash, 30, Id., 533; Fink, Brother & Co. v. Denny, 75 Va., 663; Hatcher v. Crews, 78 Id., 465 ; Perry v. Rhuby, 81 Id., 317; Witz v. Osborn, 83 Id., 227; Rixey v. Detrick, 85 Va., 42.

The present case, it is true, is not a ease of a post-nuptial settlement, but the doctrine of the cases just mentioned largely applies to it.

[120]*120By the common law, marriage is an absolute gift to the husband of all the personal estate of which the rvife is actually and beneficially possessed in her own right at the time of marriage, and such other personal estate as comes to her during coverture. And the principle embraces her earnings, or the products of her skill and labor, which the common law makes as absolutely the property of the husband as his own earnings. Burks, J., in Campbell v. Bowles, 30 Gratt., 652.

Hence the presumption of the law is—and this presumption is not affected by the married woman’s act—that the husband is the owner of all the property, real and personal, of which the wife may be in possession dming coverture, especially if they are living together as husband and wife; and to overcome this presumption, in a contest between the husband’s creditors and the wife, she must show affirmatively that the property is her own, and that it was derived from a source other than her husband and in good faith, if he be insolvent, otherwise a wide door would be opened to fraud.

A leading case on the subject is Seitz v. Mitchell, 94 U. S., 580, which went from the supreme court of the District of Columbia, and in which the rule is thus stated: “Purchases of either real or personal property made by the wife of an insolvent debtor during coverture are justly regarded with suspicion, unless it clearly appears that the consideration was paid out of her separate estate. Such is the community of interest between husband and wife; such purchases are so often made a cover for a debtor’s property; are so frequently resorted to for the purpose of withdrawing his property from the reach of his creditors and preserving it for his own use, and they hold forth such temptations for fraud, that they require close scrutiny. In a contest between the creditors of the liusbaná and the wife there is, and there should be, a presumption against her which she must overcome-by affirmative proof.” And after referring to a number of Pennsylvania cases, to the efiect that in the case of a purchase by .the wife after marriage, the burden is [121]*121upon lier to prove distinctly that she paid for the property with funds not furnished by the husband, and that in the absence of such proof, the presumption is a violent one that the husband furnished the means of payment, the court said: “All these decisions were made after the enactment of a statute giving to married women rights of property as against the husband and his creditors, at least as broad as any which exist in the District of Columbia. And similar decisions have been made in other states where like statutes have been enacted; ” citing Switzer v. Valentine, 4 Duer (N. Y.), 96; Glann v. Younglove, 27 Barb., 480; Woodbeck v. Havens, 42 Id., 66; Rider v. Hulse, 24 N. Y., 372; Connors v. Connors, 4 Wis., 131; Elliott v. Bentley, 17 Id., 610; Edson v. Hayden, 20 Id., 682; Duncan v. Roselle, 15 Iowa, 501; Cramer v. Redford, 17 N. J. Eq., 367. See also, Rose v. Brown, 11 W. Va., 122; Burt v. Timmons, 29 Id., 441.

Yor is the operation of the rule confined to creditors of the husband. In Bradford’s Appeal, 29 Pa.

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Bluebook (online)
9 S.E. 508, 86 Va. 117, 1889 Va. LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yates-v-law-va-1889.