May v. Merchants' & Planters' Nat. Bank of Mt. Vernon
May v. Merchants' & Planters' Nat. Bank of Mt. Vernon
Opinion of the Court
The appellee instituted this suit against the appellant, J. W. May, to recover damages for the conversion of mortgaged property. It was alleged, in substance, that on and prior to September, 1911, Jones & Pitman, a firm composed of W. A. Jones and W. H. Pitman, were indebted to appellee dn the sum of $3,936; that this indebtedness was based upon an advance of money made by the appellee to Jones & Pit-man for the purchase of hogs for shipment and sale in the markets; that there was an understanding with Jones & Pitman that the appellee was to have a lien upon the hogs as security for the advances made; and that when the hogs were sold the proceeds were to be immediately transmitted to the appellee and by it applied as a credit upon the indebtedness. On the 6th day of September Jones & Pitman sold to the appel *1195 lant, J. W. May, 120 head of hogs, which, it is alleged, were worth about $1,000, and upon which, it is claimed, the appellee had a lien by virtue of the verbal agreement above referred to. It is further alleged that this sale was fictitious, fraudulent, and void, and was made for the purpose of defeating plaintiff in the collection of its debt; that Jones & Pitman at the time were insolvent, and that this was known to May at the time of the alleged sale; that the transaction was the result of a collusion between May and Jones & Pitman, for the purpose of cheating and defrauding the appellee. The petition closes with a prayer for the value of the hogs, which, it is alleged, amounted to $1,-000. May answered by general demurrer and by general and special denial. The case was tried before the court without a jury, and a judgment rendered against May in favor of the appellee for $500.
The evidence shows that Jones & Pitman, at the time they sold the hogs in question to May, were also Indebted to the bank at Winfield, Tex., for money advanced to enable them to purchase a portion of the hogs; that May gave his check upon the bank for $500, the purchase price of the hogs, and that this check was placed to the credit of Jones & Pitman in the Winfield bank; that it a little more than discharged the debt then due. There is nothing to impeach the bona fides of the transaction, unless it be that the hogs were shipped out of Winfield within a few hours after they were purchased by May. This is explained in such a manner as to relieve it of the necessary inference of fraud. There is no evidence that May knew of the insolvency of Jones & Pitman at the time, or that he entered, into any collusive effort to enable them to defeat any of their creditors. The judgment, therefore, if any could be based upon the finding that the transaction was fraudulent and void under the statute, is not supported by the evidence. The statute only goes so far as to make such sales as it refers to void at the instance of creditors. The effect of this provision is to preserve the right of the creditor to seize the property, notwithstanding it may have been transferred to another under any of the conditions mentioned; but it does not authorize the recovery of a personal judgment against the vendee in a fraudulent transaction if the property itself cannot be reached. Le Gierse v. Kellum, 66 Tex. 242, 18 S. W. 509; Kessler v. Halff, 21 Tex. Civ. App. 91, 51 S. W. 48. It follows, therefore, that, even if the transaction be considered fraudulent within the terms of the statute, there is no basis in the evidence for a personal judgment against May.
The judgment of the district court will therefore be reversed, and judgment here rendered for the appellant.
Reference
- Full Case Name
- May v. Merchants’ & Planters’ Nat. Bank of Mt. Vernon
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