Joslin v. Goebel

Decision Date05 February 1892
Citation51 N.W. 354,90 Mich. 71
CourtMichigan Supreme Court
PartiesJOSLIN v. GOEBEL et al.

Cross-appeals from circuit court, Kent county, in chancery; WILLIAM E GROVE, Judge.

Action by Harvey Joslin against Henry M. Goebel and Caroline A Goebel to set aside a conveyance. Judgment for plaintiff. Both parties appeal. Decree modified and affirmed.

Montgomery & Bundy, Fletcher & Wanty, Stuart &amp Knappen, and Taggart & Denison, for complainant. Butterfield & Keeney, for defendants.

LONG J.

On August 31, 1888, the defendant Henry M. Goebel made an assignment to the complainant for the benefit of creditors purporting to convey all his property not exempt under the laws of this state. On September 8, 1888, schedules required by law were filed in the office of the clerk of the circuit court for Kent county. These schedules were sworn to by Mr Goebel, and from them it appears that his assets were appraised at $43,355.23, and his liabilities at $53,343.86. On petition of some of his creditors, an order was made by the circuit court for Kent county, granting leave to the creditors to file a bill against the said Henry M. Goebel and his wife, Caroline A. Goebel, in the name of the assignee, for the purpose of recovering assets which it is claimed were not enumerated in the schedules filed, and that were held by the wife of the assignor in fraud of creditors, and to subject such assets to the payment of the claims of the creditors. The bill was answered by the defendants separately, and replication filed. Testimony was taken in open court, and the court found that Henry M. Goebel, the assignor, had an interest in certain real estate, the legal title to which stood in the name of his wife. Upon this finding, the court directed decree to be entered in favor of complainant, and against the defendant Caroline A. Goebel; that she pay to the complainant for the creditors the sum of $1,071.99; and this was made a lien upon her lands. A petition was thereafter made to the court by complainant to open the decree, and to take further proofs, on the grounds of newly-discovered evidence. This petition was granted, and the order entered. Further proofs were then taken, upon which the court on July 3, 1891, made a final decree, fixing the amount to be paid by the defendant Caroline A. Goebel to the complainant at the sum of $2,232.41, with costs. From this decree both parties appeal. From the record it appears that Mr. Goebel came to Grand Rapids in 1871, and engaged in the business of selling wall paper, paints, and oils. In February, 1876, he married the defendant, then the widow of Gilbert Cook. After the marriage they resided at Mr. Goebel's house, on Livingston street, until January 1, 1882, when they moved to a house on Madison avenue, where they have since resided. This Madison-Avenue property had been purchased by Mr. Goebel in November, 1881, from William Addis in exchange for the Livingston-Street property. In the exchange Mr. Goebel paid in cash the sum of $3,500. To raise this amount he mortgaged the Madison-Avenue property to a Mr. Wood for $2,500. In the exchange the consideration for the Madison-Avenue property was stated in the deed at $10,500. In August, 1888, Mr. Goebel paid the mortgage down to $1,250. On August 27, 1888, he conveyed the Madison-Avenue property to his wife by a deed which recited a consideration of $16,000. On the next day he conveyed to H. D. Kingsburg, for a recited consideration of $1,200, three city lots, and to his step-son, John W. B. Cook, a house and lot in Evanston, Ill., for $1,000; thus divesting himself of all his real estate. Three days later he made an assignment for the benefit of his creditors. This bill is filed to set aside the deed to his wife and to reach his equities in that property. The defendants claim entire good faith in the transfer; that, by an agreement made soon after they were married, the Livingston property had been understood to be...

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