Williams v. Lewis
Williams v. Lewis
Opinion of the Court
Opinion by
The evidence in this record establishes the fact that William Lewis, prior to the conveyance made by him to his father-in-law,
The consideration, alleged to have been paid by the father-in-law, was five thousand dollars, a sum certainly less than the value of the property conveyed. Whether this consideration was actually paid or not, is involved in doubt. It may be assumed from the proof that some portion of the consideration had been paid in the discharge by the father-in-law of certain liabilities of Lewis; but from the relation of these parties, the one to the other, the manner in which the property was after-wards held and used by the grantor and his wife, the price paid therefor, connected with the insolvency of Lewis, and the additional fact that the land was afterwards reconveyed to Mrs. Lewis for the consideration expressed in the deed from her husband to her father, when ho money had in fact been paid, and the failure of Carlisle to show how and in what manner the consideration was actually paid by him, constrains this court to conclude that the deed dated in February, 1862, was fraudulent as to creditors.
The whole estate of Lewis, worth (including his claim in the Cecil suit) not less than sixteen thousand dollars, is, in a short space of time, all conveyed and transferred to the father-in-law and son, and not one dollar left to pay creditors. It seems, however, that after the conveyance made in 1862, that Carlisle, the father-in-law, by virtue of the judgment- rendered in the Mercer Circuit Court in the cases of Meadley, Dedman et al. v. Wright and Duncan, purchased the same land conveyed by the deed of 1862, and a deed was made him by the commissioner, under an
The remaining question to be determined is whether the transfer and assignment by William Lewis to his son, John W. Lewis, of the Wright claim was fraudulent as to the creditors of William Lewis. A personal judgment had been obtained against Wright by William Lewis for a large sum of money, but the attachment obtained for the purpose of securing this debt had been discharged by an order of the Mercer Circuit Court in the consolidated causes of Meadley et al. v. Lewis, and insists that, as the attachment had been discharged and Wright, the debtor, was insolvent, no loss accrued to creditors by reason of this transfer. It is true that the judgment of the Mercer Circuit Court was adverse to the lien asserted by Lewis, by reason of his attachment; but nevertheless the claim was made available by the judgment of this court; and John W. Lewis, the son, realized eight or ten thousand dollars of that judgment, the consideration for the assignment of which was only two hundred dollars paid, and secured to be paid; and it does hot appear from the-proof that the son ever paid to the father one dollar of this sum. It is true that John W. Lewis prosecuted an appeal to this court, and, as urged by his counsel, no part of the claim against Wright would have been realized but for his efforts in obtaining a reversal of the judgment.
It is unnecessary to allude to the many facts and circumstances proven showing conclusively the efforts on the part of Wm. Lewis to place his property beyond the reach of his creditors. In the litigation between the appellant, Williams, and Wm. Lewis, the father of the appellee, Wright was the witness upon whose- testimony the court adjudged that the bill of exchange was made, and the money drawn thereon for the purpose and interests of a partnership, existing, as the witness stated, between Lewis and himself, and evidenced by a written agreement. This controversy was had in the Taylor Circuit Court, and has long since terminated favorably to the appellant, and is the judgment now sought to be enforced. It is a little remarkable that Lewis, during the progress of that litigation, failed to produce or require the production of the agreement spoken of by Wright as showing the existence and terms of the alleged partnership. He not only failed to do this, but seems not to have contested, with much effort, at least, the liability that Wright was attempting to impose upon him. Lewis instituted his action in the year 1861 in the Green Circuit Court to enforce various large claims that he held against Wright. This action seems to have been transferred to the Mercer Circuit and consolidated with other actions that had been instituted' by various parties against Wright; and upon the final hearing in
But has: there been any fraud shown in the case, and does any really exist? Certainly none on the part of Williams, and we perceive none on the part of Wright in regard to the controversy between Williams and Lewis. Why Lewis did not have a legal construction given the agreement referred to by Wright, is left unexplained. Wright made no concealment of the evidence of this alleged partnership; and when this writing is produced in the Mercer Circuit Court, upon inspection, it must be seen that its legal construction or meaning was one of doubt, until settled by this court. If, however, this writing had been produced in the Taylor Court the result of the controversy would doubtless have been the same. Lewis was liable as the surety for Wright for many thousand dollars. Williams had no interest in the stock and was only attempting to aid Wright in his speculations. The money, the proceeds of the bill, was being applied, as Wright and the cashier of the bank both swear, to the payment of liabilities for which Lewis was bound as surety, and not Williams. The cashier says a part of it was
The production of the agreement rather evidences the good faith in which Wright made his statement, than showing a purpose on his part to prepare himself in order to obtain the judgment. Wright had obtained his release in bankruptcy when the alleged compromise was made between himself and Williams. The action by Williams in the bankrupt court was for the purpose of enforcing the collection of a claim, from the payment of which Wright had already been released; and a compromise by which Lewis was made the beneficiary in securing a payment of $1,900 on a claim that was no longer a debt of Wright, and for which Lewis was legally responsible, can not have the effect, to release the latter from its payment.
The judgment of the court below is reversed and cause remanded with direction to subject the proceeds of the assigned judgment on Wright in, the hands of John Lewis, or so much as may be necessary to pay appellants’ debt, first deducting from the amount in his hands, the costs, expenses, lawyers’ fees, etc., incurred by him in the prosecution of the appeal from the Mer-
Case-law data current through December 31, 2025. Source: CourtListener bulk data.