Roane v. Bank of Nashville
Roane v. Bank of Nashville
Opinion of the Court
delivered the opinion of the Court.
Six bills were filed by the creditors of Samuel Gr. Hays, against the Bank of Nashville and others, to impeach and set aside for fraud, two deeds of trust made by said Hays, covering all his property of the value of about §60,000 as alleged, to Edmund Cooper, as trustee to secure the debts specified in said deeds. These 11s were consolidated and heard together, when they
The first deed was made on the 8th of August, 1856, and is the one on which the main assault is made. The grounds of attack are:
1. That the debt which it was made to secure, to the Bank of Nashville, was largely tainted with usui*y. It amounted to about $28,000, and that, together with a debt of §5,000 to Cooper and Cummings, and $1250 to Blakemore, were the debts secured by that deed upon land and slaves, worth largely more than the aggregate amount. But the imputation against the Bank debt is what we have to examine. At the date of this deed, the Bank had a judgment against Smith, Doak, Cummings and Blakemore, for about $18,000. Blake-more and Cummings were endorsers, and had filed a bill to be relieved from liability on some ground assumed by them as endorsers, perhaps on account of time given to the principals. The Bank had also filed a bill against Says, on account of his transactions with Smith in relation to his land, in which it was claimed that he was liable for about $8,000. Smith and Doak were insolvent, but Cummings and Smith not so considered. In this state of things, Hays, then having a large property, though much involved, entered into an agreement with the Bank, and with Cummings, Blakemore and Cooper, that if the Bank would loan him $15,000 on long time, and the others $6250, he would assume the said debt of $18,000, and secure the whole by a trust upon his land and slaves. This was agreed to, the money advanced, the judgment transferred, and the deed of trust executed. This, it is insisted, was usurious, to the ex
2. The next ground of objection is, that the amount of property was unreasonably disproportionate to the debt secured, and the time of credit was so great, as to raise a presumption of fraud. It is true, that the land and slaves were worth greatly more than the debts, large as they were, but this was not unreasonable, as the property was bound by judgments and executions to-a vast amount, and in the involved condition of Hays, it was not improper to make the security thus ample.. And as it turned out, it was proved not to be excessive. There was no illegality either, in the extension of the credit to five years, as that could not affect other creditors injuriously, unless property to a greater amount than was necessary to pay the secured debts, was. thereby covered up and shielded from them, by which they were defeated or delayed in the collection of their debts, or some personal advantage was thereby intended to be .secured to the common debtor, to the injury of other creditors. The land was sold in about one month
If a debtor has the right and power to appropriate his property to some creditors in preference to others, when he cannot pay all, of which, of course there can be no doubt, there is nothing in this transaction against law or morals. It is but the common case where some creditors are more fortunate, or more vigilant than others; the latter must loose where all cannot be saved.
It is admitted, that there will be no overplus after the payment of the debts secured in the two deeds of trust, both of which were made before the filing of these bills, and the complainants declined to go into an account to ascertain the fact, conceding that all the trust fund arising from the proceeds of the land, slaves and choses in action, conveyed in the deeds, would not be more than enough for that purpose. Consequently, as
We, therefore, affirm the decree, with costs.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.