Webb v. Globe Securities Co.
Webb v. Globe Securities Co.
Opinion of the Court
The evidence in this cause reasonably satisfies us that the debts secured by the mortgages in question were in fact , the debts of complainant’s husband. Not only is this not controverted in the evidence submitted, but respondent’s president, who conducted all of the transactions in question, testified that he represented the mortgagee' in the $2,800 mortgage transaction, and “made a loan to Mr. Webb for $2,800 and took a mortgage on his farm, and gave him a cheek for the proceeds.”
If this were all, complainant would be entitled to the relief prayed for as to both of the mortgages.
The testimony of complainant and her husband clearly establishes this charge, and shows in fact a constructive trust in favor of creditors, whether existing or subsequent. Seals v. Robinson, 75 Ala. 363.
We apprehend that the trial judge denied relief on the theory that a wife may convey her property to her husband’s creditor in payment of his debts, and that the deed of July, 1917, was effectual for that purpose, although complainant received no personal benefit therefrom. Elkins v. Bank, 180 Ala. 18, 6 South. 96.
Respondent made no attempt to meet this burden of proof, and, indeed, the testimony offered for complainant supports the charge of duress, and shows an inadequate consideration.
Let the decree of the chancery court be reversed, and a decree here rendered setting aside and canceling the deed executed by complainant and her husband to respondent on July 27, 1917, as shown by Exhibit D to E. F. Enslen’s testimony, and authorizing redemption from the mortgage executed by them to Emma J. Enslen on, to wit, December 16, 1913, and by her transferred to respondent.
The cause will be remanded for further proceedings to this end.
Reversed, rendered, and remanded.
Addendum
On Rehearing.
On the original hearing we interpreted the testimony of M. F. Webb as showing that he was indebted to various creditors at the time he caused the property in question to be conveyed to his wife, the complainant, as a gift from himself to her; and thereupon we held that she took it in fraud of subsequent creditors as well.
There is no merit in appellee’s contention that the bill of complaint does not present any issue as to the adequacy of the consideration for the deed of July 27, 1917. The bill shows the relation of the parties, and attacks the deed as procured by the oppressive conduct of the mortgagee. This casts upon the respondent the burden of alleging and proving the fairness of the transaction, including the sufficiency of the consideration, as pointed out in the original opinion.
The rehearing will be granted, the opinion will be modified as above, and full relief granted, as prayed, both as to the mortgage and the deed.
As to the mortgage of June 11, 1915, for $600, complainant is entitled to no relief except redemption, and the cause will be remanded for a reference to ascertain the amount due, and for further orders and decrees as may be appropriate.
It is urged for the appellee that the doctrine of Shaw v. Lacy, 74 South. 933, 2 cannot be applicable here, because, if the mortgage for $2,800 was void as a security for the husband’s debt, the relation of mortgagor and mortgagee did not in fact exist between Mrs. Webb and the respondent at the time her deed was executed. This contention ignores the'fact that there was another mortgage for $600, which we hold was valid and binding on Mrs. Webb, and which fixes the relation between them.
Respondent’s application for rehearing is without merit, and will be overruled.
Reversed, rendered, and remanded.
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