Werts v. Spearman
| Decision Date | 09 March 1885 |
| Citation | 22 S.C. 200 |
| Parties | WERTS v. SPEARMAN. |
| Court | South Carolina Supreme Court |
1. An administrator, who was also a creditor, filed his bill for the sale of the lands of his intestate in aid of assets. A son of deceased, a defendant to the action, by his answer claimed the land under an unrecorded deed from his father. Held , that plaintiff might, at the trial, attack this deed for fraud, although no charges of fraud were preferred in the bill.
2. A conveyance in consideration of a pre-existing debt, the vendor retaining possession, and such possession not satisfactorily explained, is fraudulent as to creditors.
3. But there being no actual fraud in the case, the vendee was permitted to establish the indebtedness of the intestate, the consideration in part of the conveyance; and also to receive from the proceeds of the sale of such land the value of other property, which was also a part of the consideration, said property having been sold by intestate and applied to his debts.
4. Findings of fact by the Circuit judge approved.
5. Where charges of actual fraud are made against a defendant in a civil action, resting in great part upon circumstances, the defendant may introduce testimony as to his general character.
Before KERSHAW, J., Newberry, July, 1883.
The case is fully stated in the Circuit decree, which was as follows:
This case was commenced under the old system of pleadings, by a bill in equity, by the plaintiff as administrator of the estate of Graves Spearman, deceased, alleging, among other things, the insufficiency of personal assets to pay the debts of the deceased; that he himself held a note against his intestate under seal, which he set forth as an exhibit to the bill, upon which a considerable sum remained due, and that there were other debts; and there was a necessity for the sale of the real estate of the intestate to pay debts; that G. W. L. Spearman was in possession of a tract of land described in the bill, whereof the said intestate was owner at the time of his death; and that he had also possessed himself of personal property of the deceased. The bill prayed that the said G. W. L. Spearman be required to account for the personal property, and that the land be sold and the proceeds applied, so far as needed, to the payment of the debts of deceased. Graves Spearman was the father of G. W. L Spearman, of Nancy Werts, wife of Jonathan Werts, and of the plaintiff, and the grandfather of the defendants.
No defence was made to the bill, except by G. W. L. Spearman who answered, denying the possession of the personal property, except a few articles of little value, and admitted that he was in possession of the land, but denied that it was the land of the intestate at his death, but that it was the absolute property of him, the said G. W. L. Spearman. He also admits that the estate of the said intestate was insufficient to pay the debts of his estate.
The cause came to trial at November term, 1879, upon the law side of the Court of Common Pleas upon an issue submitted to a jury. There was no written statement of the issue, but his honor, the presiding judge, directed the jury that their verdict should be " either for the defendant, G. W. L Spearman," or " that Graves Spearman died seized and possessed of the land, and that it is subject to the payment of the debts and distribution among the heirs at law of Graves Spearman." There was much testimony heard at the trial before the jury, and their verdict was " that Graves Spearman died seized and possessed of the 423 acres of land, and that it was liable for his debts, and to distribution among his heirs at law."
A motion for a new trial was thereupon made for the defendant, G. W. L. Spearman, and refused, and an order was signed by the presiding judge, reciting and confirming the verdict, directing that it be referred to the master to take the accounts of the administrator, and to determine and report upon all the issues of law and fact herein undisposed of, and calling in the creditors of Graves Spearman to establish their demands, and enjoining suits against the administrator in the meantime. This order was made at chambers. An appeal was thereupon taken by the defendant, G. W. L. Spearman, to the Supreme Court, upon various grounds. The case was returned to this court for a hearing on the merits, it being considered that the hearing upon which the said order was made could not be had at chambers. 16 S.C. 618.
At the present hearing, much additional testimony was introduced, and the whole case was ably and fully argued by learned counsel on either side. Numerous questions, both of law and fact, were discussed, but only such will be stated here as I consider necessary to sustain this conclusion. On the 10th day of April, 1866, the deceased, Graves Spearman, conveyed, by deed duly executed and delivered to G. W. L. Spearman, the tract of land described in the complaint, the consideration recited being $4,230. This land constituted all of the real estate of Graves Spearman, except twenty-five acres, whereon he resided. He was largely indebted at that time to the plaintiff, on the note set up in the bill, and to others. On the same day, G. W. L. Spearman conveyed, by his deed duly executed and delivered to Graves Spearman, 279 acres of land, the consideration recited being $3,060. It is not denied that the latter conveyance was the consideration in part of the former. These 279 acres of land were made up of two parcels. The first, 212 acres, was conveyed by Graves Spearman to G. W. L. Spearman 28th December, 1859, when Graves was a man of large means and owing few debts, and they of small amount. Of this land, G. W. L. Spearman had been in possession from the date of the conveyance of the same to him. In a list of advancements made by Graves Spearman to G. W. L. Spearman, the value of this land is put down at $2,968. The list bears date December 20, 1849, and embraces a number of negroes given off by Graves Spearman to his children, G. W. L. Spearman, N. C. Werts, and Drucilla Werts. After giving off these slaves, he had upwards of forty remaining, worth at that time, at the value stated in the list of advancements, an average of between $900 and $1,000 each. Some of the witnesses said they were worth that. The advancement list was in the writing of Graves Spearman, and in a book kept by him. G. W. L. Spearman says he bought this land from his father. The deed conveying the same to him recited the consideration to be $2,968. This deed had but one witness; still, if it was made for a valuable consideration, it would be a good conveyance in equity, or if even for a good consideration. Story Eq. Jur. , §§ 166, 165; 1 Foubl. Eq. , ch. 1, § 7, notes .
This tract (279 acres) of land was subsequently conveyed by Graves Spearman to one Travis Hill, in settlement of a debt which he owed him, amounting to much more than the consideration named in the deed of G. W. L. Spearman conveying the same to him, and more than the consideration named in the deed for the tract of land (423 acres) conveyed by Graves to G. W. L. Spearman.
The other tract of land which, with the 212 acres, composed the tract of 279 acres, was derived by G. W. L. Spearman from one T. J. Taylor by purchase in 1858 (November 1st) for $1,000, the deed conveying 113 40-100 acres. At the time of this purchase there was a mortgage upon this land, held by one Adams (as I understood at the hearing), which, to the extent of $500, was paid by Graves Spearman. In the list of advancements put down to G. W. L. Spearman, he is charged with the payment to B. Adams of $500. I assume that to be the same sum paid by Graves on the Taylor land. If so, as he entered it among the advancements, he intended it as a gift to G. W. L. Spearman, and being in circumstances at that time to make a valid gift, it must be so considered. The portion of the Taylor land so conveyed, with the 212 acres, was sixty-seven acres, making up the 279 acres conveyed by G. W. L. to Graves Spearman as part of the consideration of the deed for the 423-acre tract. To this extent, therefore, there was a valuable consideration passed from G. W. L. to Graves Spearman for the land in question.
G. W. L. Spearman sold the remainder of the Taylor land to Gen. A. C. Garlington, and lent the proceeds, $900, to Graves Spearman, taking his note for it. This, he testifies, constituted the remainder of the consideration for the land; that he gave up the note to his father when the papers were executed between them. There was in evidence a deed from Graves to G. W. L. Spearman and G. H. Werts, dated January 12, 1867, conveying to them twenty-five acres of land (the homestead) and personal property, valued at $132. The consideration of this deed was nominally $2,000. George H. Werts testified that Graves Spearman owed him $1,000; that Graves proposed to him and G. W. L. Spearman to convey to them his home place and his household and kitchen furniture in payment of their notes; that they finally agreed to take it, and credit their respective notes with the amount of $1,000 each. They then united in executing a lease to the home place to Graves for his life-time, at an annual rent of one dollar , which lease was produced and put in evidence.
G. W L. Spearman testified that he worked with his father from 1846 to Christmas, 1866, and attended to his business, for which he claimed a sum over $3,800. It was claimed that after deducting the value of the 212 acre tract of land conveyed to him by his father, for the consideration expressed in the deed ($2,968), his father still owed him over $800, and that he held his father's note for that amount. He testified that he paid for the 423 acres of land by his deed for the 279 acres, and by his note against...
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