Johnston, Tallman & Co. v. Tuttle Bro's

Mississippi Supreme Court
Johnston, Tallman & Co. v. Tuttle Bro's, 65 Miss. 492 (Miss. 1888)
Arnold

Johnston, Tallman & Co. v. Tuttle Bro's

Opinion of the Court

Arnold, C. J.,

delivered the opinion of the Court.

The instructions for appellees were not applicable to the case made by the evidence and should not have been given. Whether fraud was intended or not, the course of dealing under the deed of trust was such as to render it fraudulent as to creditors, and a ground for attachment. The legal 'effect of the arrangement disclosed by the record, was to hinder, delay and defraud creditors, and the law imputes to it conclusively a fraudulent purpose, without regard to the actual motives of the parties. And it is immaterial whether the agreement or understanding by which the grantors retained possession of the stock of goods, and continued to carry on the business as they had done before the deed of trust was executed, was expressed on the face of the instrument, or proved to exist by evidence aliunde. In legal contemplation, the effect is the same in both eases. On the undisputed facts, the verdict should have been for appellants. Harman v. Haskins, 56 Miss., 142; Joseph v. Levi, 58 Id., 843; Brittan v. Criswell, 63 Id., 394 ; Baldwin v Little, 64 Id., 126; Bump. on Fraudulent Conveyances, 2d Ed., 126.

Reversed and remanded.

Reference

Full Case Name
Johnston, Tallman & Co v. Tuttle Bro's
Cited By
4 cases
Status
Published
Syllabus
Attachment. Deed of trust on stock of goods. Agreement for grantor to remain in possession and continue business. Case in judgment. T. .executed a deed of trust on his stock of goods to secure a promissory note in favor of E., and it was agreed verbally between them that T. should remain in possession of the goods, sell the same, replenish the stock, pay off his debts and conduct the business in his usual manner. This agreement was being carried out when T. was attached by one of his creditors on the ground that he had disposed of his property with intent to hinder, delay and defraud his creditors. In the trial of the issue raised by a traverse of the ground of attachment the facts above stated were proven; and there was evidence to show that T. and E. had no fraudulent intent in the matter. Held, that the legal effect of such an arrangement was to hinder, delay and defraud creditors, and the law conclusively imputes a fraudulent purpose, without regard to the actual motives of the parties. The attachment was properly sued out.