Allen v. Dodge
Allen v. Dodge
Opinion of the Court
This is a suit by the plaintiff as trustee in bankruptcy to set aside conveyances of real property which the complaint avers to have been made for the purpose of defrauding the creditors whom the plaintiff represents. The three defendants
It is declared by the complaint that Jane Dodge conveyed the forty-acre tract to Edgar in 1911, and that the latter in October, 1918, with the intent to defraud his creditors, reconveyed the forty-acre tract to his mother, Jane Dodge, who in turn, about November 1, 1918, with like intent, conveyed that parcel of land to Vena L. Clubb.
As to the six-acre tract, the history of the transaction as given by the plaintiff is, that about March 2, 1917, Jane Dodge and Walter Dodge, who is a brother of the defendant Edgar Dodge, together with Velma Dodge, wife of Walter, executed a deed conveying the property to Wilson, subject to a certain agreement in writing whereby it was provided that Wilson was to hold the legal title in trust for Edgar Dodge. The complaint goes on to state that about October 23, 1918, Edgar Dodge, with intent to cheat his creditors, caused Wilson to convey the six-acre tract to one Workman for the use and benefit of Dodge, and still further, on March 9, 1918, Edgar Dodge with the like
“That all of said real property was conveyed as hereinbefore alleged to said Vena L. Clubb, now defendant Vena L. Dodge, without consideration and with intent and for the purpose to cheat, hinder, delay and defraud the said creditors of said defendant Edgar Dodge, and the legal title thereto is now held by said defendant Vena L. Dodge with intent and for the purpose to cheat, hinder, delay and defraud the said creditors of said Edgar Dodge and plaintiff as trustee in bankruptcy, for said creditors and said bankrupt’s estate.”
The answer of Edgar Dodge and Vena L. Dodge challenges the complaint in material particulars, especially all allegations of fraud and trust in favor of Edgar Dodge, and affirmatively traces the title from Jane Dodge to Vena L. Dodge, nee Clubb, who claims to have paid adequate and valuable consideration for the conveyances to her, in good faith and without notice of any wrongful intent of any of her grantors.
Separately answering, Jane Dodge makes denials like those of the other answer and sets up a history of the transaction in much the same terms as that answer.
In turn, the reply traverses the new matter in the answers, except as stated in the complaint.
The Circuit Court heard the testimony, made findings of fact and rendered a decree in favor of the defendants, dismissing the bill, and the plaintiff appeals.
Vena L. Clubb married Edgar Dodge December 10, 1918, which was after all the. conveyances in question had been executed. It appears in testimony that she had kept company with Edgar Dodge for several years and was probably engaged to be married to him when she took the conveyances. She testifies, and
The latter tract was subject to a mortgage of $2,850, while the title was in Jane Dodge. Miss Clubb paid Jane Dodge $1,350 for the tract on condition that the mortgage should be reduced to $2,000. Jane Dodge acceded to the proposition,- took the $1,350, applied enough of that payment to reduce the mortgage to $2,000 and remortgaged the land to another party for that amount.
As to the value of the property, the only testimony for the plaintiff is that of the witnesses Scott and Lafky. They have only a general knowledge of bottom land in Marion County and they put the value at from $125 to $150 an acre. On the other hand, witnesses who are immediately familiar with the land and live in its vicinity appraise it at from $70 to $80 an acre. The witness Hurley, testifying for the defendants, described the land as subject to overflow and wash by the waters of Butte Creek, and stated that it is infested with Canada thistle and wild mustard, and portions of it have on them small oak grubs that have grown up after slashing, rendering it difficult to cultivate or harvest any growing crop. From this testimony about the actual condition of the land we conclude that the price paid was not out of proportion to the actual value of the property, at least not so grossly inadequate as to shock the conscience of a chancellor.
“The provisions of this chapter shall not be construed in any manner to affect or impair the title of a purchaser for a valuable consideration, unless it appear that such purchaser had previous notice of the fraudulent intent of his immediate grantor, or of the fraud rendering void the title of such grantor.”
Without question, Miss Clubb earned and furnished the money for the purchase price of the conveyances which she took to the land. It is not averred in the complaint that she had previous notice of the fraudulent intent of her grantor. The most that is stated in that pleading as against her, is that she now holds
These subjects are treated in Jennings v. Frazier, 46 Or. 470 (80 Pac. 1011); Ball v. Danton, 64 Or. 184 (129 Pac. 1032); Coffey v. Scott, 66 Or. 465 (135 Pac. 85); Sabin v. Kyniston, 81 Or. 358 (159 Pac. 69); Vogt v. Marshall-Wells Hardware Co., 88 Or. 458 (172 Pac. 123); Farmers’ National Bank v. Renfro, 94 Or. 260 (184 Pac. 564).
The decree of the Circuit Court is affirmed.
Affirmed.
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