Spindler v. Atkinson
Spindler v. Atkinson
Opinion of the Court
delivered the opinion of this court.
The admissions at the bar, on the part of the appellants’ counsel, have left only one of their points for our consideration, to wit: “Whether the sale and conveyance made by the sheriff to James Philips, invested him with a complete title to the property in controversy?” being that mentioned in the deed of 27th March 1834.
IJpon this admission the appellee is entitled to relief as against the cestui que trusts in the deed, that instrument being fraudulent and void as against the creditors of the grantor. But it is said that Philips occupied a different attitude after his purchases at the sheriff’s sales; that the property having been seized and sold under judicial process, issued at the instance of the creditors of Spindler, who had a right to sell for the satisfaction of their judgment, Philips had as much
For most of the time that these transactions were taking place Philips was abroad, and could have had no participation in them. He gave his sanction, on his return, to what his agent had done; but it does not necessarily follow from this that he was aware of any fraud in the acts of the parties. Nor do we find in the record such proof of fraud and collusion in bringing about the sheriff’s sales, as to satisfy us that the judgment, execution and sales were not the act of the insurance company, uninfluenced by any solicitations or contrivances of those charged with the fraud.
There arc circumstances of suspicion which, as against the other parties, might afford evidence of fraud in bringing about the sheriff’s sales; but we cannot find the truth of this allegation as against Philips, when he was not in the country at the time, in opposition to the direct and positive denials in the answers, and in the absence of more positive proof on the subject. The sheriff proves that the property was sold in the usual way, and that the purchase money was paid at the time of the sales. Philips states that the purchases were made in good faith, and that the money paid was his own, of which no part has been refunded. If this were not true, a further examination of the sheriff might have traced the residue, after paying the judgment, to the hands of Philips, or his agent or attorney, and thus shown his participation in the fraud. It is difficult to believe that Philips would have made this purchase under the alleged fraudulent arrangement, and" not have secured to himself, In some manner, the residue of this large sum, if it had been advanced by him merely in aid
His honor, the Chancellor, in his opinion, does not consider the question of fraud as connected with the sheriff’s sales. He treats the deeds as good inter partes, which is unquestionably correct, and as having divested Spindler of all interest in the property, except the contingent life estate reserved to him by the deed, and that when Philips purchased at the sheriff’s sale, he acquired, and could acquire, nothing more than this contingent right, which, by the death of Spindler, no longer existed. 1 Md. Ch. Dec., 515. If this view of the extent of the rights of creditors against the properly of a fraudulent grantor be correct, then, even if there be no fraud in the sheriff’s sale, Philips could have no interest in the present controversy. But in this we do not concur. Though such a deed be good as between the parties, it is- void as against creditors, and the law, when dealing with the property in behalf of creditors, treats it as if no deed had been made; as to them it is no deed at all. The purchaser takes all that the grantor owned in the properly at the time of the conveyance. If questions subsequently arise as to the bona fides of the deed, they must be settled between the purchaser and those claiming under it. The purchaser is substituted, by law, in the place of the judgment creditor. 17 Conn., 492. 7 Blackf., 66. 2 Wharton, 240. 4 Wash. C. C. Rep., 129. 1 Watts and Seargt., 297. 11 Gill and Johns., 45. 1 Md. Rep., 470. Assuming, therefore, that the deed of March 1834, is void as against Spindler’s creditors, and that there was no fraud on the part of Philips in connection with the sheriff’s sale, he must be treated as the purchaser of Spindler’s entire interest in the properly at the date of the deed of trust.
.As to the second objection taken on the part of the appellee : The question here is not between Philips and those claiming under the deed as cestui que trusts, but between-Philips and the creditors of the fraudulent grantor. The
Upon these authorities we are of opinion,- that though Philips could purchase, he could not have held the property for his own benefit. He was estopped from denying the validity of the deed of trust, although the creditors of Spindler might assail it; and when vacated at their instance, the interest of the cestui que trusts must enure to the benefit of the creditors. Philips will be allowed for his expenditures and improvements, but cannot be charged with the rents and profits, as in the case of Bell vs. Mong, because the complainant has waived that part of the relief claimed by his bill. Under these circumstances, however,- we think that interest should not be allowed to him. Nor can we notice the personal property mentioned in the proceedings, inasmuch as no appeal was taken in reference thereto. Having expressed our views and pointed out wherein we differ from the chancellor, a decree will be signed accordingly.
Decree reversed.
The decree of the court passed in this case, after reversing the decree of the chancellor with costs, proceeds as follows-:
Reference
- Full Case Name
- Bethia Spindler and others v. Joshua Atkinson, Perm't Trustee of Wm. C. Spindler
- Cited By
- 6 cases
- Status
- Published