First National Bank v. Condon
First National Bank v. Condon
Opinion of the Court
The complainants were judgment' creditors of William Condon, and filed the bill in this case in aid of several executions which had been levied on the lands involved herein, to set aside deeds of the land from said William Condon to several relatives. At the hearing in the circuit court the bill was dismissed as against all of the defendants except William Condon and his wife, Annie Condon, and she only has appealed.
William Condon was engaged in business in the village of Hancock previous to 1896, and became involved. At that time he was owner of considerable land and other property, most of it being incumbered. Among his creditors was his wife, whose claim is shown to have amounted to over $10,000, and his daughter, whose claim was upwards of $3,000. Among the lands held by Condon was an undivided four-sixths interest in the following, viz., the N. E. i of the N. W. £, and the S. W. ¿ of the N. W. i, and a few acres in the N. E. corner of the S. E. |7 of the N. W. of section 27, adjoining the village of Hancock on the west. The testimony was taken in open court, and shows that Mrs. Condon was apprised of her husband’s failing circumstances, and urged him to pay or secure the amount that he owed to her and to the daughter, and he promised to do so, and upon August 16, 1896, he made the deeds attacked. We need not concern ourselves with the conveyance to the daughter. Mr. Condon testified that at the time he figured the interest upon his wife’s claim, and found due her $8,981.65 (though later
“Gentlemen, I may as well decide this case now as any other time. First. The court finds the indebtedness to Mrs. Condon was bona fide, and was something above $6,500, and the indebtedness to Miss Condon was bona fide, and was something over $3,000. It is admitted in the pleadings,, and in the testimony of Mr. Condon, that he was insolvent at the time he made the conveyances in question in this case; and the only question that this court will have to decide is whether the consideration named in the deeds to Mrs. and Miss Condon, respectively, was inadequate, — grossly inadequate. If it was, for all above that amount the conveyance will be deemed to have been voluntary, and must go to the creditors. If it was an adequate consideration, — a fairly adequate consideration, —the conveyance will stand, and the bill will be dismissed.”
This was followed by a short discussion of the facts, from which he concluded that the interest was deeded to the wife for half what it was worth, which sum he held to be a grossly inadequate consideration. The case seems to turn upon the value of the premises; for it appears to be conceded that Condon might lawfully prefer his wife’s bona fide debt.
After deeding this property, Condon was given a power of attorney from his wife and daughter to sell it. In August, 1897, the N. E. 40 acres, and the fraction of the S. E. 40 acres, were platted, and the streets were graded at an expense of $1,000 or upwards, and the lots went upon the market. But few lots were sold, as sales ceased in October, 1897, owing to this litigation; that being the time complainants’ levy was made. Condon testified that he and Mr. Gray, his solicitor, made up the figures upon
Thus, we have the testimony of Condon, Scott, and
“Hancock, Michigan, September 27, 1897.
“Mr. JohnE. Jones, Cashier,
“ Lake Linden, Michigan.
“ Dear Sir: You hold two notes made by me, amounting to about $10,000; also one note of my son’s for about $700, indorsed by me; also note or notes aggregating about $-, riiade by O. W. Robinson and indorsed by me; also a note made by W. B. Northrup, on which there is a balance due of about $3,063, indorsed by me and others, which has been paid by new notes of W. B.. Northrup and James A. Close, Jr. I also understand that you suppose something to be due from me to Mr. James A. Close, as trustee in certain stock matters. You hold an insurance policy on my life for $10,000 as collateral security for certain of the above obligations, on which there is now a cash surrender value of about $1,200, as stated by you, and an ultimate endowment value of about $12,500. I make you the following proposition in settlement of all the above obligations, and all claims or demands of every kind held by you against me, viz.: There has recently been platted and recorded by my wife and. daughters certain territory in the outskirts of the village of West Hancock, known as ‘Condon’s Second Addition to the Village of West Hancock.’ My wife and daughters have expressed a willingness to aid me to some extent in my financial troubles, and I think will consent to convey to you, in full settlement of my obligations above stated and referred to, blocks numbered 16 and 21 of said addition, comprising 46 lots. The inside lots (38)- are now selling at $200 each, and the corner lots (8) at $300 each. The town is growing rapidly out towards these lots, and no doubt in time -you will realize out of the same*462 your claim against me with interest. This proposition is on the condition that you surrender back to me all your claim and interest in said policy of insurance. Awaiting your reply, I remain,
“Very truly yours,
“Wm. Condon.”
To our minds, this is not very conclusive evidence. Soon afterwards a levy was made upon these lands. It is significant that the complainants took no steps to attach the property at or about the time the transfer was made. After times got better, and the village became prosperous, and the land had been platted and streets graded, it was easy to see that it was possible to get more money out of the lánd than Mrs. Condon paid for it. Then they levied, and filed this bill. We think the preponderance of the proof shows that it was not deeded to Mrs. Condon for a grossly inadequate sum, and that the bill should have been dismissed. *
The decree is reversed and the bill dismissed, with costs of both courts.
Reference
- Full Case Name
- FIRST NATIONAL BANK OF LAKE LINDEN v. CONDON
- Status
- Published