Lillard v. Johnson

• Decision Date: 15 February 1899
• Citation: 49 S.W. 889,148 Mo. 23
• Parties: LILLARD v. JOHNSON et al.
• Court: Missouri Supreme Court

49 S.W. 889

148 Mo. 23

LILLARD v. JOHNSON et al.

Supreme Court of Missouri, Division No. 1.

February 15, 1899.

FRAUDULENT CONVEYANCE — WHAT CONSTITUTES — EVIDENCE.

1. A father, while solvent, transferred personal property on his farm to his son in payment for services rendered by the latter after majority. About four years later, the father conveyed the farm to defeat creditors, and his grantee conveyed it to the son, who had no knowledge of the father's fraudulent intent, or of the deed to himself, and who never claimed thereunder. A judgment creditor of the father levied on and bought the farm, and, having sued to set aside the transfer of the personalty, the son compromised by selling it, paying off the judgment against the father, and taking a deed of the farm. Each year after the transfer of the personalty until the year the father conveyed the farm, the personalty was assessed for taxation in the father's name, the son supposing it made no difference, and the assessment for the year last named being based on property existing the year previous, when the father was not indebted, and so had no reason to desire to hide his property. Held, that the transfer of the personalty to the son and his purchase of the farm were valid.

2. Said judgment creditor was the holder of a note made by the father and another, whose farm was also levied on, and bought and conveyed to the son, who immediately transferred it to the former owner. Another judgment creditor of the father subsequently levied on and sold the latter's farm, and the purchaser sued to have the mesne conveyances to the son set aside, and the latter declared a trustee of a resulting trust. Held, that evidence of the transfer of the other debtor's farm by the son to the former was properly excluded.

Appeal from circuit court, Vernon county; D. P. Stratton, Judge.

Bill by J. W. Lillard against Josiah E. Johnson and others. From a judgment for defendant Johnson, plaintiff appeals. Affirmed.

Bill in equity to set aside conveyances of real estate, declare a resulting trust, and devest title. Stated in the order of their sequence, the facts in this case are these: John Johnson was a prosperous farmer in Vernon county. He had several sons, and after each attained his majority he worked for his father for several years, and the father then started them in business for themselves. About 1873 he gave his son William a farm, worth from $800 to $1,000. He gave his son J. D. Johnson some cattle and corn. Defendant Josiah became of age in 1883, and stayed on the place, working for his father, until March, 1887, when his father transferred to him some horses, mules, cows, hogs, wagons, and farming implements, worth from $800 to $1,000, in payment of what he owed him for his services. He sold the other stock on the place, and rented the farm of 280 acres to Josiah for $300 a year. He then moved to the town of Clayton, and engaged in buying and selling stock, and later went into the saloon business. In 1888, A. G. White was elected sheriff of Vernon county for a term beginning January 1, 1889, and John Johnson became one of the sureties on his official bond. White was re-elected in 1890, and John Johnson again became one of his ten sureties. In March, 1891, John Johnson conveyed the farm to his wife, previously stating that he believed White, the bank, and the country generally was going to default. On the 9th of July, 1891, the Citizens' Bank of Nevada made an assignment for the benefit of its creditors, and it was then ascertained that White was financially ruined. On the 21st of July, 1891, Johnson and wife conveyed the farm to his partner, John Gorse. Johnson owed Gorse some $300, but there was no arrangement between them that the conveyance was to be a security for the debt. Josiah, the defendant, rented the farm from Gorse for the years 1892 and 1893, and paid him the $300 rent for 1892, which Gorse applied on the father's debt to him. The Union National Bank of Kansas City obtained judgment against John Johnson and John Vetters on May 6, 1892, on a note for $1,100, made by them, and on or about the same day the assignee of the Citizens' Bank of Nevada obtained judgment against John Johnson on his note for $300. An execution was issued on the judgment in favor of the Union National Bank, and the Johnson farm and that of Vetters were sold, and bought in on the 13th of December, 1892, by Neal, the vice president of the bank, and by him conveyed to the bank. What was left of the personal property transferred by John Johnson to his son Josiah in 1887, and what Josiah had accumulated in the meantime, was also levied on. Josiah claimed the property. The bank then instituted a suit in equity against John and Josiah, returnable to the May term, 1893, to have the sale of the personal property from John to Josiah set aside, and to subject the property to the payment of the bank's claim. On the 24th of June, 1893, Gorse conveyed the farm to Josiah, but it was done wholly without Josiah's knowledge or consent, and the deed, though recorded, was never delivered to him. During the taking of depositions in the case against John and Josiah to have the sale of the personal property set aside, an agreement was made between Josiah's attorney and the attorney for the bank, each having authority from his client, that Josiah should sell the stock, and pay the judgment of the bank, and that the bank would convey the Johnson farm and the Vetters farm to Josiah. Accordingly Josiah sold the stock, paid the bank, and the bank conveyed the property to him on September 30, 1893, and Josiah transferred the Vetters farm to him. Subsequently an execution was issued on the judgment in favor of...