Gragg v. Martin
Gragg v. Martin
Opinion of the Court
The principal defendant had assigned the wages which he expected to earn under an existing contract; and these being afterwards attached by the trustee process, the assignee came in as a claimant. The plaintiff alleged that the assignment was fraudulent against creditors, and made for the purpose of keeping the wages out of their reach. The claimant at the trial asked the court to rule that “ future wages to be earned under an existing contract are not liable to an attachment; and an assignment of such wages made openly and for a good consideration is not fraudulent, although made for the purpose of keeping them out of the reach of creditors.” The court declined so to rule, and to this refusal the claimant excepts.
The precise question thus presented does not seem to have
There would be force in this argument if the property or right of property conveyed could in no event be made available by creditors, as in the case of property exempted by law from attachment or compulsory appropriation for the discharge of debts. But at the time this trustee process was commenced, this fund was subject to attachment, but for the assignment. There was no more impossibility that creditors should be defrauded than exists in any case where the fraud intended is against subsequent creditors. They are not creditors to be defrauded when tne conveyance is made. Yet if the conveyance be made with the express intent to defraud them, and the debtor afterwards contracts debts, the subsequent creditor may avoid the conveyance. Clapp v. Leatherbee, 18 Pick. 131, 138. Parkman v. Welch, 19 Pick. 231, 237. We think the dictum in Boylen v. Leonard a correct statement of the law.
The existence of a consideration for the conveyance or assignment, if an actual intent to defraud be established, will not make it valid. Kimball v. Thompson, 4 Cush. 441.
The fact that the assignment was made “ openly,” though a circumstance indicating good faith, is certainly not conclusive against other evidence of fraud. Exceptions overruled.
Reference
- Full Case Name
- Jarib G. Gragg v. James Martin & trustees
- Status
- Published