Florence v. De Beaumont

• Decision Date: 24 April 1918
• Docket Number: 14521.
• Citation: 172 P. 340,101 Wash. 356
• Parties: FLORENCE v. DE BEAUMONT et al.
• Court: Washington Supreme Court

172 P. 340

101 Wash. 356

FLORENCE v. DE BEAUMONT et al.

No. 14521.

Supreme Court of Washington

April 24, 1918

Department 1. Appeal from Superior Court, Asotin County; Chester F Miller, Judge.

Suit by Charles S. Florence, trustee of the estate of H. C. De Beaumont, against H. C. De Beaumont, F. G. Morrison, and others to set aside fraudulent conveyance. From a judgment dismissing the action as to defendant Morrison, plaintiff appeals. Affirmed.

Fred E Butler, of Lewiston, Idaho, and E. J. Doyle, of Clarkston for appellant.

C. H. Baldwin, of Asotin, for respondent.

ELLIS C.J.

Plaintiff, trustee of the estate of H. C. De Beaumont, a bankrupt, brought this action against De Beaumont and wife, T. U. Denny and wife, and F. G. Morrison, to set aside as in fraud of creditors a deed and bill of sale made by De Beaumont and wife to Denny and a chattel mortgage made by Denny and wife to Morrison, and to recover the personal property transferred and mortgaged by these instruments, or its value, and further to recover from Denny the value of a crop of grain at the time of the transactions in question growing upon the land conveyed by De Beaumont and wife to Denny. It was orally stipulated in this court that F. G. Morrison after plaintiff took this appeal has died, and that Ellen T. Morrison, the duly appointed executrix of his estate, be substituted as respondent in this appeal.

We find it unnecessary to notice the pleadings further than to say that they sufficiently present the issue of good faith in these transactions. The cause was tried to the court without a jury. The court found in substance that upon and prior to May 12, 1914, De Beaumont and wife were the owners as their community property of 320 acres of land in Asotin county, Wash., subject to a mortgage for $9,000 to the Holland Bank; that they also owned certain farm machinery, hogs, cattle, sheep, and eight work mules and harness; that the mules were subject to a mortgage of $500 to the Holland Bank; that there was growing upon the premises during the seasons of 1914--15 a crop of grain; that the land and personal property constituted all of the property owned by the De Beaumonts at that time from which claims of creditors could be satisfied; that at that time and prior thereto De Beaumont was insolvent, owing debts in the sum of $15,000; that on May 12, 1914, De Beaumont conveyed the real estate mentioned to Denny, and on the same day transferred and delivered to Denny all of the above-mentioned personal property and crops on the land; that the deed and bill of sale were filed for record on May 13, 1914, at the request of C. H. Baldwin, attorney for De Beaumont and Denny; that the deed and bill of sale were without consideration and were made for the purpose of hindering, delaying, and defrauding De Beaumont's creditors; that at the time of this transaction De Beaumont's attorney, Baldwin, was preparing for him a petition in bankruptcy, and that Denny when he received the deed and bill of sale knew of De Beaumont's insolvency, and took the same for the purpose of assisting De Beaumont in defrauding his creditors; that for the purpose of securing Mrs. De Beaumont's signature to the deed and bill of sale Denny paid to her the sum of $950, which thereby became community property of the De Beaumonts; that demand has been made by the trustee for the possession of the land and the delivery of the personal property upon Denny, who has refused to deliver the same, and upon Mrs. De Beaumont for the $950 which she also has refused to pay to the trustee. Touching the mortgage from Denny to Morrison the court specifically found:

'(23) That on the 12th day of May, 1914, said T. U. Denny made, executed and delivered to F. G. Morrison a chattel mortgage to secure the payment of $1,500 secured upon the personal property above mentioned and described, including said crop of grain.

'(24) That at the time said mortgage was made said F. G. Morrison was unable to leave his home on account of physical injury, and said Chas. H. Baldwin drew up said mortgage and looked after the interests of said Morrison in taking said mortgage.

'(25) That at said time said Chas. H. Baldwin was the attorney of the said H. C. De Beaumont and knew of his insolvent condition.

'(26) That said chattel mortgage given to said F. G. Morrison by said T. U. Denny as aforesaid was in consideration of the sum of $1,500 paid by the said Morrison to the said Denny.

'(27) That said F. G. Morrison took said chattel mortgage, without knowledge of the insolvent condition of said H. C. De Beaumont, and without knowledge of the fraudulent transactions which had taken place between said H. C. De Beaumont and said T. U. Denny, and was to the extent of his mortgage an innocent purchaser of said personal property covered by his said mortgage.

'(28) That the sum secured by said mortgage was prior to the trial of this action repaid to the said F. G. Morrison by the said T. U. Denny, and that said mortgage has been satisfied and released.

'(29) That said F. G. Morrison has never received or converted to his use any property belonging to the estate of said H. C. De Beaumont, bankrupt, as aforesaid.

'(30) That the value of the personal property transferred by said H. C. De Beaumont to T. U. Denny as aforesaid was $2,000, and that the landlord's interest in the crops grown on the lands sold by said De Beaumont to said Denny was of the value of $950; that the said T. U. Denny should be credited in his accounting with the sum of $600 paid by him to the Holland Bank to release the mortgage on the mules described in said bill of sale, and with the sum of $150 paid as interest on the real mortgage held by said Holland Bank, leaving a balance of $2,200 to be accounted for by the said T. U. Denny to the said trustee.'

Upon these findings and appropriate conclusions of law the court decreed that plaintiff have judgment against Denny and

Mrs. De Beaumont, jointly, for the sum of $950 and interest from May 18, 1913, aggregating $1,160.58; that plaintiff recover from Denny the further sum of $1,250, with interest from May 18, 1913, aggregating $1,517.08; and that plaintiff recover his costs against the De Beaumonts and Denny. The court further ordered that the action be dismissed as to the defendant Morrison, and that he recover his costs. From this order of dismissal as to Morrison, plaintiff appeals.

We have examined the evidence as set out in the abstracts of record with frequent recourse to the statement of facts. We are satisfied that it supports the findings by a fair preponderance in every particular save one. The finding numbered 23 is in error in that it states that the original chattel mortgage from Denny to Morrison for $1,500 covered a crop on the land. As a matter of fact the mortgage on the crop was executed on October 20, 1914, for an additional sum of $285, but we find this fact immaterial inasmuch as this money...