Wilson v. Ward

Decision Date02 September 1919
Docket Number(No. 1151.)
Citation100 S.E. 205,149 Ga. 325
PartiesWILSON et al. v. WARD.
CourtGeorgia Supreme Court

(Syllabus by the Court.)

(Additional Syllabus by Editorial Staff.)

Error from Superior Court, Crisp County; D. A. R. Crum, Judge.

Suit by J. A. Ward against J. A. Wilson and others. Separate orders were taken overruling demurrers to the petition and defendants bring error. Reversed.

In an equitable suit instituted in Crisp county the petition as amended, considered in connection with certain exhibits, alleged the following in substance:

The Farmers' State Bank, a corporation of Crisp county, being insolvent, was placed in the hands of a receiver on March 15, 1915. By order of the court the receiver was directed, upon payment of 50 per cent. of the outstanding deposits of the bank and obtalnment of the consent of all the depositors, to sell and convey unto the plaintiff all the personal property of every description belonging to the bank. The conditions named in the order having been complied with, the receiver duly executed a transfer of the property, in pursuance of the order, on January 3, 1917; and the plaintiff thereby became transferee of the choses in action hereinafter mentioned, and as such transferee eomplains. On separate designated dates shortly before the appointment of the receiver, J. A. Wilson, of Crisp county, executed two several promissory notes for stated amounts, payable respectively to W. D. Wilson & Bro. Company (a firm composed of W. D. Wilson, J. A. Wilson, and Clyde Wilson) and the Farmers' State Bank, upon which J. A. Wilson is now indebted to plaintiff as transferee. On separate designated dates shortly before the appointment of the receiver, the firm of W. D. Wilson & Bro. Company, above mentioned, executed several promissory notes for stated amounts, payable respectively to the Farmers' State Bank, to W. D. Wilson, and to their own order, duly indorsed by them, upon which notes they are now indebted to plaintiff. On May 1, 1914, Wilson-Roberts Company, a firm composed of W. D. Wilson, J. A. Wilson, Clyde Wilson, and J. A. Roberts, executed a promissory note for a stated amount payable to the Farmers' State Bank, upon which note the makers are now indebted to plaintiff as transferee. On December 31, 1913, and March 4, 1914, respectively, R. L. Wilson, of Bibb county, executed two promissory notes for stated amounts, payable respectively to the Farmers' State Bank and to J. F. Calhoun, upon which notes the maker is now indebted to petitioner as transferee. At the dates of the execution of the several promissory notes J. A. Wilson was the president of the Farmers' State Bank. In July next after the appointment of the receiver, and on a subsequent stated date, J. A. Wilson, being insolvent, executed two deeds, purporting to convey separate parcels of land to R. L. Wilson. On May 15, 1914, July 1, 1915, February 15, 1916, and April 11, 1916, R. L. Wilson, being at the time insolvent, executed separate deeds purporting to convey described real estate to George Miller, to Crisp Hardware Company (of which J. A. Wilson was manager), to Mrs. Sallie B. Wilson (wife of R, L. Wilson), of Bibb county, and to Macon Trust Company, of Bibb county, of which R. L. Wilson was president. On April 23, 1916, Sallie B. Wilson executed a deed purporting to convey to the Crisp Hardware Company some of the lots included in the above-mentioned deed from R. L. Wilson to herself. W. D. Wilson & Bro. Company, the Wilson-Roberts Company, and the several members of each firm are insolvent. The several conveyances above mentioned were void on account of having been made without consideration and as part of a conspiracy to enable R. L. Wilson and J. A. Wilson to hinder, delay, and defraud creditors of each of them. On the subject of conspiracy it is specially alleged:

"Said conspiracy consisted in negotiating said evidences of indebtedness with the said Farmers' State Bank by common consent of all parties interested in each of said obligations, and at the instance and through manipulation of the said R. L. Wilson, and with knowledge of each other, procuring thereon money and other thing of value from said Farmers' State Bank, without giving therefor any security, and done with the fraudulent intent to resist and defeat the payment of the same by hiding, conveying, and concealing the live and available assets of the makers of said obligations, in the manner here-in described, and in the conveyances hereinbefore described; and said conspiracy consisted further in so shifting the titles to the properties herein described as to clear all of said property out of the said J. A. Wilson and the said R. L. Wilson, and with fraudulent intent to defeat the collection of their several obligations hereinbefore described, and to hinder, delay, and defraud the creditors of the said Farmers' State Bank and this petitioner. The transfers of property alleged to have been made were made subsequent to the creation and during the existence of the indebtedness set forth, the notes and obligations set out, and which do not themselves antedate the transfers complained of, being, as petitioner is informed and believes, in renewal of indebtedness previously existing and obligations previously given to the said Farmers' State Bank. The fraudulent character of said acts and transfers was well known to each and all of said defendants concerned therein, and the illegal purpose to defraud coexistent in the mind of all of said defendants. The defendants J. A. Wilson, R. L. Wilson, W. D. Wilson & Bro. Company, W. D. Wilson, Clyde Wilson, J. A. Wilson, Crisp Hardware Company (of which J. A. Wilson, Mrs. J. A. Wilson, and R. L. Wilson are practically the only stockholders), Macon Trust Company (of which R. L. Wilson is the controlling and owning stockholder), and Mrs. R. L. Wilson, wife of R. L. Wilson, otherwise known in said transfers [as] Sallie B. Wilson, are all related, not only in blood, but also by the closest affinity in all personal and business relations, and each and all were cognizant of and...

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