Claflin v. Ambrose

• Decision Date: 28 March 1896
• Parties: CLAFLIN et al. v. AMBROSE et al.
• Court: Florida Supreme Court

19 So. 628

37 Fla. 78

CLAFLIN et al. v. AMBROSE et al.

Florida Supreme Court

March 28, 1896

Appeal from circuit court, Alachua county; J. J. Finley, Judge.

Bill by Charles F. Claflin and others against George H. Ambrose and others. From the decree rendered, plaintiffs appeal. Reversed in part, and in part affirmed.

Syllabus by the Court

SYLLABUS

1. Where one partner purchases real property with partnership assets, and takes the title thereto in the name of his wife without the consent of the other partner, a trust results to the partnership and its creditors.

2. A transfer of partnership assets by one partner, without the consent of the others, in payment of his individual debt, is a fraud upon the other partners, and does not divest the title of the partnership.

3. In a suit to set aside a conveyance made by a husband to his wife as fraudulent, brought by his creditors, whose claims existed at the date of such conveyance, the burden of proving a consideration proportionate to the value of the land conveyed is upon the wife, and clearer and fuller proof is required than if the transaction had been between strangers.

4. A voluntary conveyance of real property, not his homestead made by a husband to his wife, when in failing circumstances is void as to his creditors whose claims existed at the date of such conveyance.

5. A court of equity will entertain jurisdiction of a suit brought by a partnership creditor against the surviving partner and the administrator of a deceased partner to enforce the payment of a partnership debt out of real property of the deceased partner, which was fraudulently conveyed by him, in his lifetime, to his wife, although such partnership debt had not been reduced to a judgment against such surviving partner at the commencement of such suit.

COUNSEL

W. W. Hampton, for appellants.

E. C. F. Sanchez, for appellees. Charles F. Claflin filed a creditors'bill on the 21st of July, 1885, in the circuit court of Alachua county, in chancery, against George H. Ambrose, Samuel C. Tucker (as administrator of Hardee Raulerson, deceased), Sarah E. Raulerson, W. L. Ambrose, Walter G. Robinson, and Alonzo B. Cushman (as assignee of Raulerson & Ambrose), and therein charged that during the summer and fall of 1884 the late firm of Raulerson & Ambrose, composed of Hardee Raulerson and George H. Ambrose, became indebted to him in the sum of $1,387.57, which they failed to pay, and afterwards fraudulently disposed of all of their real and personal property to divers persons, for the purpose of defeating him in the collection of said sum of money. George H. Ambrose conveyed, without any consideration, to his son W. L. Ambrose, certain real property, described in Exhibit B, attached to the bill. This conveyance was recently made, although it is dated May 24, 1882. Hardee Raulerson, in July, 1884, purchased from Reed F. Tillis, for Raulerson & Ambrose, certain real property, described in Exhibit C, attached to the bill, and paid for it with partnership assets, but had the title made to Sarah E. Raulerson, his wife. He also conveyed to her other real property, described in Exhibit D, attached to the bill, and also conveyed to P. W. W. Sparkman, his brother-in-law, certain other real property, described in Exhibit E, attached to the bill. The former of these deeds is dated May 30, and the latter September 24, 1884. Afterwards, on the 31st of May, 1885, Sparkman conveyed the real property last mentioned to Sarah E. Raulerson. These several conveyances were without consideration, and voluntary, although a valuable consideration was stated in each of them, and were made for the purpose of defrauding, hindering, and defeating the plaintiff in the collection of his debt. George H. Ambrose conveyed to Walter G. Robinson a large tract of land, described in Exhibit G, attached to the bill. This conveyance is dated October 11, 1884, and was without consideration, although a consideration of $1,000 is therein stated.

Raulerson & Ambrose on October 11, 1884, assigned to Alonzo B. Cushman all of their assets, consisting of real property and a stock of merchandise, in trust for the payment of their debts. This assignment and the several deeds of conveyance were executed by Hardee Raulerson and George H. Ambrose, in fraud of their creditors, while in failing circumstances.

Hardee Raulerson died in 1884, intestate, and on the 7th of July, 1885, Samuel C. Tucker was duly appointed and qualified as his administrator. After his death the plaintiff brought suit against George H. Ambrose, as his surviving partner, in the circuit court for Alachua county, and recovered a judgment against him on February 2, 1885, for $1,387.57 damages and $7.68 costs, and caused execution to be issued thereon, upon which the sheriff returned nulla bona. This judgment is still unsatisfied, and George H. Ambrose and the estate of Hardee Raulerson are insolvent.

The plaintiff then prayed that Cushman be enjoined from paying out or disposing of any of the moneys or other assets in his hands as assignee of Raulerson & Ambrose until the determination of this suit, and be required to make and exhibit to the court a true and perfect schedule and statement of every dollar received and paid out by him as such assignee, with all vouchers pertaining thereto, and pay to the plaintiff all of the moneys and assets remaining in his hands, in satisfaction and payment of his debt, and, if the assets in the hands of said assignee should be insufficient to pay said debt, then that said conveyances be canceled, and the property thereby conveyed be sold to satisfy it; and for such other and further relief as shall be equitable, etc.

George H. Ambrose made a separate answer, and therein admitted that Raulerson & Ambrose became indebted to the plaintiff in the sum of $1,387.57 at the time stated in the bill, that he made the several conveyances to W. L. Ambrose and Walter G. Robinson, that Raulerson & Ambrose made the assignment to Cushman, that Raulerson died during the year 1884, and that the plaintiff reduced his demand to a judgment against this defendant, as surviving partner of Raulerson & Ambrose, and caused execution to issue thereon, upon which the sheriff returned nulla bona, but denied that the several conveyances and deed of assignment were without consideration and fraudulent as to the plaintiff, and also denied all knowledge and information relative to the other allegations in the bill.

Walter G. Robinson also made a separate answer, and therein admitted that George H. Ambrose made the conveyance to him of which Exhibit G, attached to the bill, is a copy, but denied that it was without consideration and fraudulent as to the plaintiff, and also denied any knowledge or information relative to the other allegations in the bill. He alleged that since this conveyance was made to him, and before the institution of this suit, he sold and conveyed the property therein described to one Alexander G. Middleton for $1,000, and has no estate or interest therein.

W. L. Ambrose also made a separate answer, and therein admitted that George H. Ambrose made the conveyance to him of which Exhibit B, attached to the bill, is a copy, but denied that it was without consideration and fraudulent as to the plaintiff, and also denied any knowledge or information relative to the other allegations in the bill.

Samuel C. Tucker (as administrator, etc., of Sarah E. Raulerson) and Alonzo B. Cushman severally demurred to the bill, and the court overruled these demurrers and required them to answer.

Sarah E. Raulerson then made her separate answer, and therein admitted that Hardee Raulerson made to her the conveyance of which Exhibit D, attached to the bill, is a copy, and to P. W. W. Sparkman the conveyance of which Exhibit E, attached to the bill, is a copy, and that P. W. W. Sparkman made to her the conveyance of which Exhibit F is a copy, but denied that these several conveyances were fraudulent as to the plaintiff. She also denied that the land which Hardee Raulerson purchased from Reed Tillis was paid for with money or assets of Raulerson & Ambrose, and alleged that the purchase money for said land, as well as that described in Exhibits D, E, and F, was paid out of money arising from the sale of her separate statutory property, and that the said conveyances were made to her prior to the creation of the plaintiff's demand.

Alonzo B. Cushman also made a separate answer, and therein admitted that Raulerson & Ambrose made the assignment of which Exhibit H is a copy, and that he was therein appointed assignee, and took possession of and sold the property assigned to him, and, out of the proceeds arising therefrom, paid the creditors who were preferred, and has on hand a balance of $1,466.69, but denied that the assignment was fraudulent as to the plaintiff or the other creditors, and also denied any knowledge or information relative to the other allegations in the bill.

The plaintiff filed replication to these several answers dismissed his suit as to W. L. Ambrose on July 24, 1886, and afterwards amended his bill by making Meinhard Bros. & Co., Herman & Kayton, the Bradley Fertilizer Company, and Reisser & Stern Company, plaintiffs, and Samuel H. Weiges, as sheriff and ex officio administrator of Hardee Raulerson, deceased, a defendant, and alleging that on the 9th of October, 1885, Meinhard Bros. & Co. recovered a judgment at partner of Raulerson & Ambrose, in the circuit court for Alachua county, upon a debt due by said firm, for $1,139.67 damages, together with $7.53 costs; and Herman & Kayton also recovered a like judgment against the same defendant, in the court aforesaid, for $880.09 damages and $6.40 costs; and the Bradley Fertilizer Company on November 19,...