Wells v. Thomas

• Decision Date: 31 July 1846
• Court: Missouri Supreme Court
• Parties: WELLS v. THOMAS & MARTIN.

10 Mo. 237

WELLS

v.THOMAS & MARTIN.

Supreme Court of Missouri.

July Term, 1846.

APPEAL FROM PLATTE CIRCUIT COURT.

STRINGFELLOW, for Appellant. That the only evidence relied on to show fraud, being the evidence as to the insufficiency of the consideration--that evidence was not such as to show fraud. The defendant, Hamilton, had nothing until Wells advanced the money and purchased the land. He then had but eighty acres, for which he might be well content to take the improvement bought by Wells. There is no evidence to contradict the answer, which states that this was in good faith, and not to defraud any person. The transfer was made before the judgments were rendered--indeed a few days after the suit was brought. The defendant, Hamilton, prior to the entry, had no interest which could be subject to payment of debts, and had he refused to enter, and permitted Wells to enter, it would have been no fraud upon his creditors. The alleged inadequacy of price does not render the conveyance fraudulent.

TODD, for Appellees. 1st. That the facts prove a collusive sale, by Hamilton to Wells, of the land to defraud creditors. 2nd. The consideration is greatly inadequate for the land. 3rd. It was conveyed without any certain contract, but to cover it from creditors, until the parties could arrange the mode and manner of payment. 4th. The facts prove that Wells, knowing the indebtedness of Hamilton, colluded to protect the property, and finally obtained it for a trifling consideration, and Hamilton, nor his creditors, obtained any benefit from the Yocum claim.

MCBRIDE, J.

The complainants filed their bill in the Platte Circuit Court against the defendants, in which they alleged that on the 6th February, 1844, they obtained a judgment against Hamilton, before a justice of the peace in-said county, for about $41, together with costs; and that the complainant, Martin, is beneficially interested in a judgment obtained against said Hamilton, in favor of Wilson & Baldwin, likewise obtained before a justice of the peace in said county, on the 4th March, 1844. That executions were regularly issued on the said judgments--placed in the hands of a constable, and by him returned “no property found,” but he summoned the defendant, Wells, as garnishee, who answered under oath that he was in no wise indebted to his co-defendant, Hamilton.

That at the time of the commencement of the suits aforesaid against Hamilton, which was in the fall of 1843, the said Hamilton had a pre-emption on the northeast quarter of section 27, township 53, range 35, situate in said county, and worth about $800. That the defendant, Wells, agreed with Hamilton to furnish $200, to enter the quarter section, provided Hamilton would convey to him the north half as soon as entered. That a short time prior to the rendition of the judgments against Hamilton, the agreement was consummated, and the land entered at the land office in the name of Hamilton, and immediately thereupon the certificate of entry, for the whole quarter section, was conveyed by assignment to Wells, fraudulently and without any valuable consideration, and for the purpose of preventing the said land from being sold to satisfy the debts of Hamilton. That Hamilton was largely indebted to other persons, and had no other estate out of which creditors could make their demands--that Wells was a near neighbor and fully apprised of his insolvency, and knew, at the time of transfer to him, that the complainants had instituted suits for the recovery of their demands, and at what time judgments would be rendered thereon.

That a few days before the entry of the land, by Hamilton, the complainants had a conversation with Wells about their claims, and the land, and that Wells then told them that he was about buying the remaining eighty acres of Hamilton, and if he done so, he would retain in his hands an amount sufficient to pay their debts. That the transfer of the eighty acres afterwards made, was without consideration, or, if anything was paid, it was done merely to give the semblance of fairness to the transaction; that the said eighty acres was worth, at the time, at least $350 or $400.

That transcripts of the judgments aforesaid were regularly filed in the clerk's office of the Platte Circuit Court, and that executions were issued thereon by the clerk, and levied by the sheriff on the land in question, which having been sold, was purchased by the complainants for the sum of five dollars, and a deed executed accordingly.

The bill concludes with a prayer that the defendant, Wells, may be compelled to convey the half section of land to the complainants; or so much thereof as shall be necessary to satisfy their demands against Hamilton; and for general relief.

Thos. Hamilton answered, admitting his indebtedness as charged in the bill. That he was entitled to the right of pre-emption on the quarter section described in the bill, but being unable to enter the land himself, he made an agreement with his co-defendant, Wells, by which Wells was to furnish $200, to make the entry, and to have one-half of the land. That in conformity with said agreement, he went to the land office and made the necessary proof, when Wells furnished the $200, and the land was entered accordingly in his, Hamilton's, name. That the entry was made on the 30th October, 1843, and the certificate of entry for the whole quarter section was assigned to Wells on the same day--but before the west eighty acres was transferred, and as a valuable consideration therefor, Wells agreed to purchase for him a claim held by Mathias Yocum, on public land, and which he did subsequently obtain for the sum of $75. That he considers the exchange a good one, not only for himself, but for his creditors, as the claim is of equal value to the eighty acres which he sold Wells. He tendered to the complainants his interest in the entire quarter section of land for $300; admits his inability to pay his debts; denies fraud, &c.

Charles Wells answered, admitting the judgments against Hamilton, and that he was garnisheed--that he answered then, and answers now, that he owed Hamilton nothing. Hamilton was entitled to the right of pre-emption in the quarter section described in the bill, in the fall of 1843, when the complainants commenced their suits against him, but denies that these judgments operated as a lien on the land, after the entry, inasmuch as he purchased prior to their rendition. The land was worth at the date of the entry $800--it was entered with his money, under an agreement with Hamilton, that he should have one-half of e land for furnishing the entrance money for the whole. The entry was made on the 30th October, 1843, and the certificate was on that day assigned to him, by Hamilton, for the entire quarter section--that for the west half of the quarter section he agreed to purchase for Hamilton a claim of M. Yocum which Hamilton said was worth as much as the entire quarter section which he had just entered. This claim he subsequently obtained and put Hamilton in possession, where he now resides.

The answer denies a knowledge, on the part of the respondent, of Hamilton's general indebtedness, but admits that he knew of the debts of the complainants, and a demand due to Geo. P. Dorriss--he admits a conversation with the complainants, prior to his purchase, concerning the complainants' debts against Hamilton, and his purchase of the land, but denies ever having promised to hold the amount in his hands to satisfy these debts--he spoke to Hamilton concerning them, and Hamilton said he would see the complainants himself, and see if he could not get them to make a discount-- denies a knowledge of suit having been commenced when he purchased of Hamilton, but supposed that he had paid the complainants, or made arrangements to that effect. He admits possession of the land, and that he has and still refuses to give possession, or convey any part, to the complainants--he also refused to pay the judgments or any part, not conceiving himself bound, either in law or equity, to do so. He may have talked about giving Hamilton's children something, but never did unconditionally promise to do so--in the event of his not getting the Yocum claim, he intended to give the children a part of the value of the land. He denies all fraud, &c.

Exceptions having been taken to the answer, and sustained, the defendant filed an amended answer, in which he states that although he lived within one mile of Hamilton, he was not intimately acquainted with him, and knew nothing of his embarrassment--that he had formed no opinion as to his solvency, either before or at the time of their trade--that about the 18th or 20th November, 1843, Hamilton apprised him that Yocum had a claim which he desired to sell, and if he would purchase that claim, he (Hamilton) would take it in the place of the west half quarter which he had assigned to defendant. That in a day or two he went and purchased the claim of Yocum for $75, Yocum saying he had another claim, and would take that sum, although the claim was worth two or three hundred dollars.

A general replication was filed to the answers, when the parties went to trial on the bill, answers, exhibits and evidence, and the court decreed in favor of the complainants. The defendants filed their motion to set aside the decree, which being overruled by the court, they excepted, and have brought the case here by appeal.

The bill of exceptions shows the following to have been...