Higginbotham v. Higginbotham's Trustee, Etc.

• Decision Date: 06 March 1934
• Citation: 253 Ky. 218
• Parties: Higginbotham et al. v. Higginbotham's Trustee in Bankruptcy.
• Court: United States State Supreme Court — District of Kentucky

253 Ky. 218

Higginbotham et al. v. Higginbotham's Trustee in Bankruptcy.

Court of Appeals of Kentucky.

Decided March 6, 1934.

1. Automobiles. — Compliance or noncompliance with automobile registration statute is not conclusive of ownership of automobile (Ky. Stats., secs. 2739g-1 to 2739g-14).

2. Bankruptcy. — In trustee's suit against bankrupt and transferees to set aside alleged fraudulent transfer of automobile, evidence of transferees' ownership of automobile held insufficient for jury.

3. Bankruptcy. — Evidence that bankrupt's transfer of automobile to daughters was fraudulent held sufficient to authorize setting aside transfer.

Appeal from Wayne Circuit Court.

E. BERTRAM for appellants.

DUNCAN & BELL for appellee.

OPINION OF THE COURT BY JUDGE CLAY.

Affirming.

W.C. Dabney, trustee in bankruptcy of W.W. Higginbotham, brought this suit against the bankrupt and his two daughters, Olivia Higginbotham and Evelyn Higginbotham, to set aside an alleged fraudulent transfer of an automobile from the bankrupt to his daughters on the ground that there was no consideration for the transfer and the transfer was made within four months next preceding the filing of the petition in bankruptcy. The daughters traversed the material allegations of the petition, and pleaded affirmatively that they purchased the automobile, that it belonged to them, and that their codefendant and father, W.W. Higginbotham, never owned the automobile or had any interest therein. A trial was had before a jury, and at the conclusion of the evidence the court directed a verdict in favor of the trustee. The court then set aside the transfer, and the Higginbothams appeal.

The facts are these: The car was purchased in August, 1931. The purchase price was $800. The bill of sale was made out to the bankrupt, and the license was taken out in his name. On August 3, 1932, the car was transferred by the bankrupt to his daughters. On October 14, 1932, and within less than four months thereafter, the petition in bankruptcy was filed. The assets of the bankrupt are about $8,000.00 and his liabilities $15,000. According to the bankrupt, he was insolvent at the time of the transfer and his daughters knew it. He never received any consideration for the transfer. The car was originally purchased from U.Y. Drake. The two girls bought the car. They had notes on him, and as soon as he could get the money he was to pay for the car and they were to give him credit on the notes they had. Part of the time the girls were present when the bill of sale was made out. The car was delivered to them at his home. He had no interest in the car except to keep it up, have the use of it, and buy the license. After he executed his note for $800 the note was renewed, and was signed by him first, and then by the girls. The only payment on the car was $25, which Evelyn paid. The girls bought the car themselves. The girls made their home with him, and possession of the automobile had not been changed in the least, only the daughters used it a right smart. When he got hold of the money he meant to pay for it. He meant to see that Drake got his money. If he got the money, the girls were to credit him on what he owed them. Each of the girls had a note against him. Olivia's claim was $1,600, and Evelyn's claim was $1,200. Both these claims were filed against his estate. No credit was given him, as he had not paid the note off. Olivia Higginbotham testified, in substance, as follows: She knew that her father was insolvent at the time the transfer was...