Preston v. Horwitz
Preston v. Horwitz
Opinion of the Court
delivered the opinion of the Court.
The two parties who were alone interested in the transactions out of which these and other similar proceedings grew, are both dead, the one, Mr. Orville Horwitz, having died in the year 1887, and the other, Mr. John Ahern, who, although still living when this bill was filed, has since then departed this life. We say that the two persons we have just mentioned were the sole and original parties to the transactions which are the subject of this litigation, because the whole claim of the plaintiff is based upon the allegation that certain deeds made by Ahern to Horwitz in the years 1872, 1873 and 1875 are fraudulent and void as against Ahern, and therefore void as against his creditors who are represented in these proceedings by the plaintiff, who is Ahern’s substituted trustee in insolvency.
In order to fairly present the question on which we think the fate of this bill depends, it will be necessary to state some of the conceded facts relating to the origin of the claims here set up, the manner in and the means by which they have been prosecuted.
It appears that Mr. Horwitz and Mr. Ahern had been for many years engaged in large real estate transactions inter sese, as well as with many other persons. Among the deeds executed at various times by the latter to the former are five conveyances, which are made the foundation of this bill, which was filed by the plaintiff as substituted trustee in insolvency of the late Mr. Ahern, for the purpose of setting aside the deeds just mentioned. The first of these deeds was made in February, 1872, the second in January, 1873, the third in July, 1874; the other two, one in February and the remaining one in September, 1875. Subsequent to the execution of the last of these conveyances Ahern became insolvent and Horwitz was appointed his trustee in insolvency by the Circuit Court for Baltimore County on the nth March, 1879. It appears that Ahern’s assets were of little or no value, and the result was inactivity on the part of his creditors. But it was plainly their
It appears from the foregoing recital that these present proceedings were commenced more than twenty years after the execution of the first and second of said deeds, and almost twenty years after the making of the others, which are attacked by the bill. We have already stated that these conveyances were made in 1872, 1873 and 1875, and that Mr. Horwitz died in 1887. Therefore, he lived fifteen years after the first, and twelve years after the last of the deeds now questioned were made, and eight years after his alleged fraud in failing to return as part of the assets of Ahern’s insolvent estate the property conveyed by the deeds in question. But in addition to this it appears from the testimony of Mr. Ahern himself that during the life of Mr. Horwitz, the former made demands upon the latter, as would seem to be clear from the evidence, based upon the assumption of the truth of the allegations of the bill, and these demands Mr. Horwitz refused to comply with, whereupon the intimacy between him and Mr. Ahern ceased. Mr. Ahern testified that he told Mr. Horwitz that he had not left a roof to shelter him, and that Mr. Horwitz replied, “ You can have any one of the houses you deeded to me.” It seems incredible that if Mr. Ahern had such a claim against Mr. Horwitz as he claims to have had that he would not have
When Horwitz refused to comply with Ahern’s demands or within a reasonable time thereafter Ahern or his creditors should have taken the proper steps to set up the claims which are now being urged. But so far from acting in a reasonably prompt manner they have slept upon their rights, if they ever had any, and never instituted proceedings of any kind until years after Horwitz’s death. The deeds in question were duly executed and recorded more than twenty years ago, and the creditors, therefore, had constructive notice of their existence. They also had actual notice of the proceedings in the Insolvent Court in 1879, at which time it is alleged Horwitz was guilty of fraud and collusion with Ahern in withholding and concealing the property conveyed by said deeds.
We refrain from a more detailed statement of the evidence, the most important part of which was furnished by Mr. Ahern, for after a careful examination of it we are convinced that its consideration, even if admissible, would be neither instructive nor profitable.
This litigation and that which preceded it appears to have been started and prosecuted by the late Mr. Ahern. It is true that two of his creditors, whose claims amounted to less than $300, joined in the application for the appointment of the plaintiff, but it must be remembered that they had already disclaimed in the most emphatic manner any responsibility whatever for the charges of fraud which were contained in the first bill, and which are also made the foundation of this. If the allegations in the former bill were without foundation, those in the bill now before us must be equally so, for they are identical. It is difficult, therefore, to understand upon what theory the two creditors who refused to join in the former proceedings instituted by Mr. Brand, as trustee, have consented to join in this. But, however this may be, we are satisfied from all the cir
But it was also urged that laches will not be allowed as a defence to charges of violations of an express trust; but the contrary rule is well established. Hanson and wife v.
Decree affirmed with costs.
Reference
- Full Case Name
- ALEXANDER PRESTON, Trustee in Insolvency of JOHN AHERN v. MARIA G. HORWITZ and Others
- Cited By
- 9 cases
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- Syllabus
- Laches — Fraudulent Conveyances — Insolvency. A bill by a trustee in insolvency to set aside certain conveyances of property by the insolvent because fraudulent as against his creditors, filed twenty years after the execution of the conveyances, sixteen years after the adjudication of insolvency and twelve years after the death of the grantee, is barred by laches. Between 1872 and 1875 certain conveyances of real estate absolute on their face were made by A. to H. In 1879 A. applied for the benefit of the insolvent law and H. was appointed his trustee, the assets reported being of little or no value. In the same year A. was discharged under the law. A. as administrator of his wife, who was a large creditor, claimed that the property covered by said conveyances had been conveyed to H. upon' a secret trust to shield the same from the creditors of A., and as security for money loaned by H. to A., and demanded the same from H. These demands were repudiated by H. and no steps were then taken to enforce them. In 1887 H. died. In 1892 a new trustee in insolvency for A. was appointed, and he filed a bill against the representatives of H. to vacate the conveyances on the ground of fraud. The creditors of A. who had asked for the appointment of the trustee, repudiated all allegations of fraud against H. and the bill was dismissed by counsel. Afterwards A. caused plaintiff to be appointed his trustee in insolvency, and in 1894 he filed the bill in this case containing the same allegations as the bill of 1892. Held, Tst. That the creditors, having delayed for many years and until after the death of H. to assert their claims, the bill must be dismissed for laches. 2nd. That the fact that H., who was alleged to have been a participant in the fraud, was also the first trustee in insolvency of A., was no excuse for the delay, because the creditors could have themselves filed the bill to set aside the conveyance after or before the appointment of H. 3rd. That even if the trust sought to be enforced in this case was express, yet laches is a good defence.