Wasson v. Lightle

• Decision Date: 18 December 1933
• Docket Number: 4-3239
• Parties: WASSON v. LIGHTLE
• Court: Arkansas Supreme Court

66 S.W.2d 652

188 Ark. 440

WASSON v. LIGHTLE

4-3239

Supreme Court of Arkansas

December 18, 1933

Appeal from White Chancery Court; Frank H. Dodge, Chancellor reversed in part.

STATEMENT BY THE COURT.

This is a creditors' suit instituted by appellants in the White County Chancery Court against appellees, seeking to set aside a number of conveyances executed by J. E. Lightle and wife Margaret Lightle, to J. W. McKinney, Lois H. McKinney and H S. McKinney; and also conveyances from J. W. McKinney to W L. Holt, and others, it being alleged: "That all said conveyances were made for the purpose of placing the property of said J. E. Lightle beyond the reach of his creditors, and have so placed it until the said conveyances be set aside and held for naught."

The grantees in the respective deeds answered the complaint, and admitted the execution of the deeds, but affirmatively alleged that they were executed for a valuable consideration therefore not fraudulent. No denial was interposed by the appellees to the alleged indebtedness to appellants. Other mortgages, deeds of trust, notes, bank accounts and other evidences of indebtedness were in controversy, but, from the view we take of the controversy, we do not here set them out in detail.

On trial of the cause, testimony was produced by the parties establishing the following facts as we find them: That on June 10, 1930, and at all time subsequent thereto, J. E. Lightle was greatly involved in debt, aggregating more than $ 60,000. Much of this indebtedness was to these appellants. This indebtedness or a great portion thereof has continued to this date. Prior to June 10, 1930, one of the appellants here was pressing appellee J. E. Lightle for security on its indebtedness. On June 10, 1930, J. E. Lightle and wife executed a deed to J. W. McKinney for a recited consideration of $ 10,000, conveying a large quantity of lands in White County. This deed was not filed for record until October 18, 1930.

On October 25, 1930, J. E. Lightle and wife executed a conveyance to Lois H. McKinney, conveying additional lands situated in White County. This deed recited a consideration of $ 3,000, and was filed for record October 30, 1930. On December 13, 1930, Lois H. McKinney and her husband, J. W. McKinney, executed a deed to R. W. McKinney, conveying the same lands which had been theretofore conveyed to Lois H. McKinney by J. E. Lightle and wife. This deed recited a consideration of $ 3,500, and was filed for record December 18, 1930. On December 19, 1930, J. W. McKinney and wife, Lois H. McKinney, conveyed to W. L. Holt all the lands embraced in the deed from J. E. Lightle and wife to J. W. McKinney. This deed recited a consideration of $ 11,000, and was filed for record December 18, 1930. On September 5, 1931, W. L. Holt and wife conveyed to J. W. McKinney and Lois H. McKinney, his wife, all the lands which had theretofore been conveyed to him by J. W. McKinney and wife. This deed recited a consideration of $ 1.00, and was filed for record September 5, 1931.

On August 31, 1931, R. W. McKinney and wife conveyed to Lois H. McKinney all the lands which had theretofore been conveyed to them by her. This deed recited a consideration of $ 1.00, and was filed August 31, 1931.

On October 30, 1930, J. E. Lightle and wife conveyed to H. S. McKinney certain lands for a recited consideration of $ 3,500. On December 13, 1930, Lois H. McKinney and her husband, J. W. McKinney, conveyed to R. W. McKinney certain lands which had theretofore been conveyed to her by J. E. Lightle and wife. The conveyances aforesaid practically denuded J. E. Lightle and wife of all their Arkansas real estate, and a number of them were admittedly without consideration.

Margaret Lightle, the wife of J. W. Lightle, is the daughter of J. W. McKinney and Lois H. McKinney. H. S. McKinney and R. W. McKinney are brothers of Margaret Lightle. W. L. Holt is the son-in-law of J. W. McKinney and Lois H. McKinney.

Neither H. S. McKinney, R. W. McKinney, W. L. Holt nor Lois H. McKinney were called as witnesses in this controversy, or gave any testimony therein. J. W. McKinney appeared as a witness in said cause, and testified in his own behalf. He testified generally that J. E. Lightle was indebted to him in a sum in excess of $ 10,000, and was so indebted on and prior to the execution of the deeds in controversy. He stated that this indebtedness began about 1912; he could not furnish or produce any note, check, bank account or voucher proof of said indebtedness, or any part thereof. This witness further testified that he did not know that the deeds had been executed to him until sometime after they were placed of record in White County.

J. E. Lightle testified in behalf of appellees, and to the effect that all the conveyances and transactions were bona fide. He further testified that the deeds executed on June 10, 1930, were purposely withheld from the records of White County by himself, and that he did not notify the grantees therein that they had been executed until sometime after they were filed for record.

Decree reversed; otherwise, affirmed.

Brundidge & Neelly, W. H. Gregory and Frauenthal & Johnson, for appellant.

John E. Miller, C. E. Yingling and Roland H. Lindsey, for appellees.

OPINION

JOHNSON, C. J., (after stating the facts).

The foregoing statement of facts demonstrates that all the conveyances here in controversy were made solely for the purpose of putting the property of J. E. Lightle and wife Margaret Lightle, beyond the reach of Arkansas creditors. It is granted, of course, that J. E. Lightle and wife had the right, under the law, to prefer their kinfolks as creditors, but, before such conveyances are finally sustained, it must be shown that they were supported by valuable considerations. We are not unmindful of the established rule that fraud is never presumed--neither are we unmindful that...