Sugg v. Tillman
Sugg v. Tillman
Opinion of the Court
delivered tbe opinion of tbe court.
This bill is filed by tbe complainant, as a judgment creditor, for about tbirty-tbree hundred dollars, of John Tillman, to impeach and set aside for fraud,, a deed of trust made to bis son, Lewis, and M. B. "W. Brown, as trustees for tbe benefit of a part of bis creditors, on tbe 12th February, 1850.
Much amplitude is given to tbe case in tbe record and briefs, and great zeal and ingenuity displayed in tbe argument. But after considering of tbe whole case we feel satisfied to rest our decision upon one of tbe many questions made and appearing on tbe face of tbe deed.
After conveying all bis land, negroes, stock, corn, fodder, bacon, pork, and farming, household and kitchen utensils, and all bis furniture, a reservation upon it is inserted in these words: “ Reserving to myself, however, out of tbe aforesaid stock, farming utensils, provender, provisions, household and kitchen furniture, (as all of my property of that description, as well as every other description, is intended to be embraced by this conveyance,) so much as I am by law allowed to retain free from execution.”
There is no legal proposition better settled than that an assignment in trust for tbe benefit of chosen creditors, which secures upon its face, any benefit or advantage to tbe debtor who makes it, is void in law, as to all other creditors. Dawver vs. Handley, 3 Yerg. 505; Peacock vs. Tompkins, Meigs, 317, 328, 584; Crutcher vs. Horton, 4 Yerg., 541. Tbe case of articles consumed
Now, is there not an express reservation of a portion of the property conveyed, for the use and benefit of the debtor, in the clause above extracted, in direct conflict with this principle? This fact alone must certainly be fatal to this deed, unless there is an antidote to be found in the provisions of the acts of assembly for the benefit of insolvent debtors. These laws should be upheld in all their vigor, being laudable and humane in their object. But it will not do to permit them to be used as a mask for fraud, or to mix and confuse the articles set apart by them for the unfortunate deb'tor, with assignments of his property voluntarily made for the benefit of favored creditors. How are excluded creditors to know what articles in particular, are claimed under those acts, if they are thrown into confusion with a large quantity of property of the same nature and description? The person claiming this benefit of exemption, must set apart what the law allows him, that it may be known by all who are concerned, and separated from that part • of his estate which is subject to his debts. But in this deed it is included in the conveyance with the mass of his property, and reserved in general terms. Creditors are not able to judge whether the quantity or kind of property specified in the law is claimed, as there is no separation or description of it. This exempted properly is strongly guarded and.
So it will be seen that this single provision in the deed, under our view of the law, is a poison which diffuses itself through the whole instrument and works its destruction as to creditors.
Many other objections of more or less force are made to this deed, which it is unnecessary that we should notice, as the one above stated and discussed is decisive of the case.
¥e therefore, declare that the deed of trust under
Reference
- Full Case Name
- Sugg v. Tillmans.
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- Published