Bunn v. Harris

• Decision Date: 01 November 1939
• Docket Number: 166.
• Citation: Bunn v. Harris, 216 N.C. 366, 5 S.E.2d 149 (N.C. 1939)
• Parties: BUNN et al. v. HARRIS.
• Court: North Carolina Supreme Court

5 S.E.2d 149

216 N.C. 366

BUNN et al. v. HARRIS.

No. 166.

Supreme Court of North Carolina

November 1, 1939

This is an action to set aside certain deeds made by W. E. B. Harris to his daughter, Mattie D. Harris, defendant in this action in fraud of creditors. W. E. B. Harris was a resident of Warren County, N. C., and died in that County in April, 1936.

Among the assets of the estate of S. H. (Hunter) Satterwhite coming into the hands of the executors, plaintiffs in this action was a note for $5,000, signed by R. A. Harris and W. H Harris, and endorsed by L. J. Harris, L. R. Harris and W. E B. Harris. Said note bearing date of September 24, 1925, and payable on demand after date with six per cent interest. That said note has been credited with the following payments February 20, 1928, $36; January 1, 1929, $900.

The testator of plaintiffs lived in Vance County and the plaintiffs recovered judgment on said note in Vance County, on February 8, 1932, for $5,943.74, with interest from December 1, 1931, and costs. This judgment was docketed in Warren County, N. C. At the time the note was endorsed by W. E. B. Harris, he had considerable real estate in Warren County, same being heavily mortgaged. The land of W. E. B. Harris was purchased by defendant, Mattie D. Harris. She was sworn as a witness for plaintiffs and testified, in part:

"The property I owned in 1926 was a note of my father's for $1,000.00 and I had some money. I had a deed of trust as security for my father's note on 65 acres of land, my grandfather's old place. I really do not know how to estimate what money I had at that time; I had it loaned out to my father and brothers. *** I am the daughter of Mr. W. E. B. Harris. I did not have any knowledge of his debts in January and February, 1927; I did not know he was in debt or not. Yes, I knew he was in debt when I got that deed reciting certain debts. It was right much of a surprise any more than the Land Bank. I did not know until he told me that he had two indebtednesses. When he transferred me the property he told me there were two debts, the Land Bank mortgage and the Phelps and Coleman notes, rather it was Mrs. Phelps and Mr. Coleman was her guardian. I don't remember the date I first knew my father was liable to Mr. Satterwhite on a note for my brother. My brother's wife, Mr. Satterwhite's daughter, came to my home one day, I do not remember when it was, and asked me would I endorse the note. I did not know it then only what she told me. I reckon she knew he endorsed it, or thought he endorsed it. I got the deed to the property before she came to my home and told me that, I got the deed for the property in 1927; I had the deed to the property but had not paid it off. *** I think I borrowed the money from the Bank of Warren to furnish the men who cultivated the land that year. I had some money to begin with and what I did not have I borrowed from the Bank of Warren and bought fertilizer, and traded on time and got through all right. I had some credit. I can't tell you what was the cost of operating a farm of that size with thirty acres of tobacco. It was different for different years, depending on the seasons, and as near as I can remember I made right good in 1927. *** I did right well in 1928 and 1929, too. I did not have as much as $3,000 left those years after paying my indebtedness. I never kept my record of what I had left after paying the indebtedness of the crop for the current year. I knew just about what I done with the money; I knew I did not have to keep any record. I don't remember about 1930, but I made pretty good in 1932, and I think I have some of the sales over here. I did not know I did as well until the other year. *** I don't think I had more than $500.00 or something like that when I paid my father the $400.00 in February, 1927. I listed for taxation in 1927, as you will see from the book, but I did not list anything prior to 1927. My father listed before then. As to whether I had any property except the $400.00 I paid my father and the $1,000.00 note, I had been growing a little piece of tobacco every year. One year it brought me $450.00, and another year a little over $700.00. I had a little crop all along and tried to beat my brothers. I had a little bank account and if they wanted it, I let them have it, let them borrow it. After 1927 my father stayed right on in the same home until he died. He deeded the land to me in 1927 and died in 1936. He did not give the same direction to the farm after he deeded it to me in 1927 that he did prior to that time. He became disabled and did not have to do anything. He rode the pony whenever he wanted to, but he did not direct the farm. If he wanted to go to a tobacco sale he went, just the same as he rode the pony if he wanted to do so. I looked after the selling of the tobacco. He looked after the selling in 1927 but the tobacco was put in the name of Harris and my tenants, and I sold some. Other tobacco than the little piece I had each year was sold in my name and everybody knew it was my tobacco. *** I don't know how many acres of land I have bought since 1927. It is somewhere around 1,000 acres I have, and might be more. I have not figured it up, but I expect it is more. The biggest that it cost me was the Land Bank debt and the Coleman debt. About the new land I have bought, I paid $3,000.00 for the Lickskillet place, and bought a little piece down by the railroad that cost me some over $500.00. Then there was another little piece I got from Mr. Thornton. Most of the money I used to buy this other land was made on the farm I got from my father. I have made some on some of the other but not very much. The most of the money I have invested in land in the last ten years has been made from this farm. * * The money that was paid the Federal Land Bank was made on this farm, and the money paid to Mr. Coleman was made on this farm. I had $900.00 worth of lumber cut that came off of his farm, too. *** I have not invested very much money in land and other agencies since 1927 beside what I have invested in my home place. Beside the Land Bank and the Coleman note, I had to pay the Bank of Warren a deed of trust I did not know was there, but for the payment to the bank I got back a piece of land that had been pledged there by my father. I own that deed of trust now. I have never had any of the papers cancelled that I bought of the debts of my father; just have them like they were and still own them in that form. My object in doing that was because I did not know what would take place and thought I would just keep them. I have heard my father had some other debts but I did not know it. I thought it might be a good idea to have a connecting link between me; I did not worry about it. I don't know that the deed was put in this form so that creditors would let me and my father alone; but there were some others of the family and I worked with my own hard labor and kept looking after him, and took care of this and felt like it was mine, and therefore, would not have any disturbance over it. My father did not continue to give me the same assistance about the farm that he had in previous years. I looked after it myself, and it was well known throughout the county. *** A lot of people in the community said I managed the farm better than it had been managed in years. My father had to rest during the middle of the day. He would ride over to his brother's and go to Macon, come back and sleep until lunch, and if he wanted to get exercise he would. He did not take any of his furnishings or living expenses out of the income from the farm. He had the income from a war risk insurance policy on his son to do anything he wanted to with. I did not find out my father owed Mr. Satterwhite any money. I have never known he owed him any. I was told he endorsed a note. Mrs. Harris, his daughter, told me he endorsed the note but I don't know what year. That is what I understood her to say, that my father and brother endorsed a note, I still say it was at least 1930 before I found out my father had endorsed this note to Mr. Satterwhite. My father never talked business but very little with me. I did not ask my father to make this deed to me. He asked would I take it and told me about the two debts owing on it, and I told him to have a home for him in his old age I would try. I don't know whether my father had property after deeding this to me, sufficient and available to pay his debt other than those I have mentioned or not. I don't know what he had. I was just trying to make my own debt. I know he had some land after he conveyed this to me, but I don't know how much. I could not tell whether that land was sufficient to pay the Satterwhite debt or not. It was valued at more than enough when he bought it, and I reckon he put more money in it than enough to pay the debt. This land that I have reference to was sold because he never was able to finish paying for it; that is what I think. I don't remember whether he had any land that was not mortgaged after he conveyed this property to me. I did not find any property that he owned after he died that was sufficient to have an administrator appointed for. ***"

On cross-examination: "I am the only daughter of W. E. B Harris, deceased. He was in his 81st year when he died, and he made me this conveyance when he was about 70 years old. The first year I took charge of the farm my father gave me a little advice, but he did not have anything to do--no more than what he wanted. If he wanted to do some little thing he would, but I don't remember him doing anything that counted for anything. *** I do not remember what year my father bought the Brown land. He was supposed to pay around $20,000 for it. I am sure that was sold to pay the balance that was...