Mitchell v. Shannon
Mitchell v. Shannon
Opinion of the Court
There is no doubt, from the testimony presented in.the record, but what the embarrassed condition of the appellee was the principal cause inducing the appellants to make a compromise by which the former was released from all liability on the judgment for near $10,000. Shannon had been known for many years by nearly all the parties litigant, and particularly by the attorneys for each party; and the opportunity offered all of them for ascertaining his pecuniary condition was of such a character as to have enabled them to make themselves perfectly familiar with his liabilities. The evidence upon record made by the appellee himself, by the execution of the mortgage to his former wards' and the deed of trust to Yantis, gave a vigilant creditor every facility for ascertaining his ability to pay,' as well as the verity of the claims he professed to owe. The deed of trust not only gave to the creditors named therein the beneficial proceeds of his estate, but made all of his creditors beneficiaries by its .provisions. Appellant’s! debt was embraced by its terms, and' in its execution the appellee must have contemplated the necessity of making through this trustee a pro rata distribution of the proceeds of his property between his creditors.
If the purposes of the appellee were fraudulent in its execution, it could not have been well carried out, unless in the presentation of false claims by pretended creditors. This deed, however, is not attacked as fraudulent, nor is it the object of the counterclaim to have it cancelled. If this writing should be assailed as being in fraud of appellant’s rights, the parties claiming under it would be required to show that their respective claims were valid. As between a vendor and vendee, where the conveyance expresses the consideration, its recital is no evidence in their behalf against those who are attacking it as fraudulent. The deed, in this case, is introduced or relied on by the appellants as evidence only of fraud on the part of appellee in procuring the compromise, and when produced conduces to show the utmost good faith upon the part of Shannon in securing his creditors by a surrender to them of all his property. If the deed contains recitals that are false, and fails to make an exhibit of appellee’s whole estate, the onus rests upon the appellants to show the facts. The theory of appellants is that the appellee, by false statements, verbally and in writing, induced them to make
In this case, however, the appellee, as surety on the note, was resisting any recovery. The case had been twice tried and a motion for a new trial was pending when the compromise was made. The claim was the subject of legal controversy, and what might have been the extent of the appellant’s' recovery is a matter of conjecture; that the settlement was a compromise of a claim alleged to be just upon the one side and denied on the other is certain; and when these parties were negotiating in reference to it, the chances for and against the recovery were no doubt considered, as well as the insolvent condition of the apjiellee. The appellee may have succeeded, and if so the result of the compromise would have been a loss to him of twenty-two hundred dollars, and a gain to the appellants of that much; and on the other hand, with success for the appellants', they would have made several thousand dollars. These chances for gain or loss were all ended by a compromise of the litigation, and this compromise is binding unless fraud is shown, in procuring it. The proposition to compromise seems not to have been made by the appellee, and was certainly not urged by him. He was resisting the payment of the claim in court and declaring to his friends that he never would pay it. His persistence in refusing to pay and his statements that he never would pay the claim were known to the appellants before the compromise was made. His business transactions were known to his neighbors. His inability to pay his liabilities was conceded. His liabilities mentioned in the deed of trust and mortgage all existed so far as there is any proof in regard to them.
Jones, Given & Company could have shown his liability to them if called on, or c.ould have made statements if the fact existed, showing a. deposit of gold with them by the appellee.' A liability of four or five thousand dollars is shown to have existed on the part of appellee to one of the firm of Jones, Given
Case-law data current through December 31, 2025. Source: CourtListener bulk data.