First State Bank v. O'Leary
First State Bank v. O'Leary
Opinion of the Court
This is an action to subject certain realty, record title to which is in defendant Mary O'Leary, to the satisfaction of a judgment against her husband, on the theory that it was conveyed to her with intent to delay and defraud her husband's creditors. Plaintiff appeals from a judgment in favor of the O'Leary’s, and from an order denying a new trial.
It is contended that the evidence is not sufficient to justify the decision. The only material issues raised by the pleadings are whether the transfer from Con O’Leary to his wife was made with intent to delay and defraud bis creditors, and whether the wife had knowledge of such intent. Even where the husband has a fraudulent intent, the transfer will not be defeated unless the wife has knowledge of it. Williams v. Harris, 4 S. D. 22, 54 N. W. 926. In these cases the question of fraudulent intent is one of fact, and not of law, nor can any transfer be adjudged fraudulant solely on the ground that it was not made for a valuable consideration. Comp. Laws, ¡j 4659. The consideration is a circumstance to be considered in connection with all the evidence in ascertaining with what intent the transfer was made, but is not in itself an essential element of a fraudulent transfer, While ihe decision of the
It being thus established that the transfer was not made with fraudulent intent, it is unnecessary to consider the effect of payments by the grantee after proceedings were commenced by the plaintiff to enforce its claim against the land in contro
A deed from O’Leary and wife to’ a third party, and one from him to Mrs. O’Leary, each executed July 1, 1893, and purporting to convey land conceded to be the O’Leary homestead, were excluded. Plaintiff was not prejudiced by their rejection, because Con O'Leary was permitted to testify, on cross-examination, that the homestead was conveyed to the wife without any consideration. If the conveyance of this absolutely exempt property was a circumstance of -any weight whatever in determing the intent of the parties with respect to the alleged fraudulent transfer which was made July 29, 1893, plaintiff had the benefit of such circumstance by reason of other undisputed evidence. The judgment of the circuit court is affirmed.
Reference
- Full Case Name
- First State Bank of Elkton v. O'Leary
- Cited By
- 2 cases
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- Published
- Syllabus
- 1. Com. Laws, £ 3298, declares that instruments affecting- real estate, other than wills, executed with intent to defraud, are void a,s against purchasers or incumbrancers for value; and Section 4659 provides that the question of fraudulent intent is one of fact, and that no transfer shall be declared fraudulent solely because it was not made for a valuable consideration. .Held, that the fact that a husband conveyed land to his wife without consideration,-while deeply in debt, was but a circumstance to be considered with other evidence in determining- the question of fraudulent intent: and hence a finding- by the trial court that the conveyance was not fraudulent will not be reversed on appeal, where there is not a clear preponderance of evidence against it. 2. A husband, in an action to subject land conveyed to his wife to his debts, testified that the personalty belonged to his wife prior to 1893, and she stated that the personalty was not assessed and did not belong- to her prior thereto. The husband's sworn tax list for 3893 was introduced, showing- that the land and personalty belonged to him, and the court refused to allow plaintiff to introduce similar lists showing tjie personalty belonged to the wife in subsequent years, for the purpose of prov- • ing that the personalty was transferred to the wife at or about the time of the transfer of the land. Held, that the exclusion of such lists was without prejudice, since the husband’s evidence was contradicted by the list of 1893, and the other lists only tended to establish the undisputed fact that the property belonged to the wife after 1893. 3. In an action by a creditor to subject land transferred by a husband to his wife on July 29th to the payment of the husband’s indebtedness, the exclusion of another deed executed 28 days previously by the husband and wife, conveying a homestead to a third party, and his reconveyance on the same day to the wife, was without prejudice, where the husband testified that the latter conveyance was made without consideration, and the creditor had the benefit of the fact of the conveyance of the property, as bearing on the question of fraudulent intent, by ocher undisputed evidence.