Doe Ex. Dem. McCorkle v. Earnhardt

Supreme Court of North Carolina
Doe Ex. Dem. McCorkle v. Earnhardt, 61 N.C. 300 (N.C. 1867)
Eeade

Doe Ex. Dem. McCorkle v. Earnhardt

Opinion of the Court

Eeade, J.

The question involved in this case is whether a purchaser for value and without notice, under a deed in trust which secures debts some of which are fictitious, obtains a good title as against the creditors of the fraudulent trustor.

The case of Shober v. Hauser, 4 Dev. & Bat., 91, decides that a purchaser without notice under a deed to secure a usurious debt gets no title. Brannock v. Brannock, 10 Ire., 428, is much to the same effect, except that the latter case sustains the validity of such a deed where some of the debts secured are bona, fide.

After the decision in the case of Shober v. Hauser, and probably in consequence of it, an act was passed to save purchasers without notice under fraudulent trusts. Rev. Code, ch. 50, sec. 5. That act provides that no conveyance, or mortgage made to secure the payment of any debt, or the performance of any contract, shall be deemed void, as against a purchaser for valuable or other good consideration, by reason that the consideration of said debt is unlawful, if the purchaser had no notice of the unlawful consideration. This statute, and the case of Brannock v. Brannock, are decisive of this case.

There is no error.

Per Curiam. Judgment affirmed.

Reference

Full Case Name
Doe Ex. Dem. James M. McCorkle v. Wilson Earnhardt.
Status
Published