Citizens' Mutual Insurance v. Foster
Citizens' Mutual Insurance v. Foster
Opinion of the Court
delivered the opinion of the court.
If the bill in this case had been exhibited to vacate the consent decree made in the proceeding in which Starke, assignee, etc., was complainant and the defendants hereto defendants, it would then have been material to allege and show the frauds and deceitful practices by which it was procured. But the complainant does not now seek to annul the compromise under which Starke parted with his title to the property in controversy. That compromise is the foundation of the claim which the complainant asserts. If it is set aside and the status quo ante restored, the result would be that the title to the property which is sought to be subjected to complainant’s demand would be vested in Starke, assignee for the benefit of creditors generally, as provided by the deed of assignment, and this would be an insuperable obstacle to the relief prayed. But complainant does not seek to do this; the sole purpose of its bill is to procure a decree affirming that the title acquired by the compromise was vested in Mrs. Foster in fraud of the rights of the creditors of her husband. If this be true, it is sufficient to support the bill; if it be not true, the complainant cannot subject the property, no matter how great may have been the fraud practiced upon Starke.
The°deed of assignment passed whatever title G. W. Foster before that time had had in the assets which were invested in the lands, and though G. W. Foster had taken the title in his own name he held the same in trust for Starke, the assignee. It does not, therefore, appear that Mrs. Foster acquired anything save the bare legal .title from G. W. Foster, and since his creditors could
The decree is affirmed.
Reference
- Full Case Name
- Citizens' Mutual Insurance Company v. G. W. Foster
- Status
- Published
- Syllabus
- 1. Chancery Practice. Certain allegations inconsistent with, purpose of hill. Fraud, when immaterial. Case in judgment. F. & Co., a commercial firm, made an assignment to one S. for the benefit of creditors. S. appointed F. his agent to collect the assets. F. did collect such assets and bought real estate therewith, taking the deeds in his own name. S. then filed a bill to have the property sold and the proceeds devoted to the purposes of the assignment. This suit was compromised by C., the wife of F., paying six thousand dollars to S. and the costs of the suit, and assuming the individual'debts of F., and S., as assignee, releasing to her his claim to the property in question. There was a consent decree to this effect. F. afterward caused the legal title to the property to be conveyed to his wife. Thereupon certain creditors of F. filed a bill against F. and C. to subject this property to the payment of their claims, alleging that the compromise was fraudulently induced by F. to hinder, delay, and defraud his creditors, and that F. furnished the entire consideration for the conveyance of the property to his wife. Held, that since the bill does not seek to vacate the consent decree, and the validity of the compromise is essential to the relief asked, the question of fraud in the procurement of that decree is immaterial, the sole question being whether F. or his wife furnished the consideration for the compromise. 2. Same. Charge of fraud. Based on conveyance of legal title by trustee. In the case above stated, F. when he held the legal title to the property in question was trustee for S-, assignee, and, as creditors of the firm of F. & Co. could not subject such title to the payment of their claims, they cannot predicate a charge of fraud on the fact that F, has conveyed it to his wife. 3. Same. Consideration. Evidence of. Case in judgment. In the above stated case, it was shown that the brother of F. lent the wife a part of the money paid to S.; that B., a person interested in having the matter compromised, lent her another portion thereof, and that the balance was derived from rents accruing from the property in question. Held, that consideration thus paid was the money, not of F., but of his wife, and cannot be subjected to his debts.