Droop v. Ridenour
Droop v. Ridenour
Opinion of the Court
delivered the opinion of the Court:
The object of the. bill in this case is to establish a claim
The two defendants, Albert M. and Alice E. Ridenour, answered the bill sepai’ately, and they deny all the material allegations of the bill respecting the want of bona fides in the making of the deed by Albert M. to Alice E. Ridenour, and they aver that they had been absolutely divorced by a decree of the Circuit Court of Cook County, in the State of Illinois, passed on the 31st of August, 1893; and that, by said decree, Albert M. Ridenour was ordered and decreed to pay to said Alice E. Ridenour the sum of $50 per month as permanent alimony; and that the arrears of alimony and the relinquishment of the future accumulations thereof, together with certain considerable sums of money, which had been, from time to time, loaned by Alice to Albert, formed the real and true consideration for the deed for the interest in the real estate conveyed. It is also utterly denied, by both defendants, that they had cohabited together as husband and wife since the divorce, and for some time before. And in the absence of clear and decisive proof of the fact, no presumption can be entertained in support of such allegation as that made by the bill.
Testimony was taken, and among the witnesses examined was Alice E. Ridenour; and her testimony has not been impeached, except as the circumstances of the case may afford grounds for suspicion as to the intent and purpose of the conveyance. Her testimony fully supports the defence set forth in her answer.
There are four principal questions presented by the pleadings and evidence. First, whether the proof establishes with sufficient clearness the existence of the claim set up by the plaintiffs against Albert M. Ridenour. Sec
1. The proof in respect to the claim of the plaintiffs, considering the nature of the claim, and what it involves, as it affects the defendant, Albert M. Ridenour, apart from mere pecuniary considerations, and the circumstances under which it is made, is not beyond all question or doubt. But, without going into a critical examination of the evidence relied on to establish the claim, we shall, for the purposes of this case, assume that it is sufficiently established, and that the plaintiffs are, and were at the date of the deed in question, creditors of the grantor in the deed, as charged in the bill. And treating the debt as established, we shall proceed to consider the other questions we have stated.
2. The deed recites a money consideration paid of $450, and this fact is much relied on as indicating the falsity of the transaction as between the parties to the deed. And if this was the only consideration for the conveyance, it would have great force as evidence to impeach the bonafides of the deed, as against the existing creditors of the grantor. The interest of the grantor in the property conveyed is shown to be more than three times the amount of the consideration stated in the deed. But the deed itself does not furnish the only evidence of the consideration upon which it was made. The testimony of the grantee shows that the real consideration was even more than the value of the interest
It is objected by the plaintiffs, and strongly urged in argument on their behalf, that what is attempted to be proved by Mrs. Ridenour, the grantee, as the true and additional consideration for the deed, to that stated on its face, is not sufficiently established to be accepted as reliable evidence; and, so far as the alleged additional consideration is made up of the arrears of alimony due, and of alimony to become due under the decree for divorce, such alimony does not, and from its nature could not, form any valid portion of the consideration for the deed. It is argued that alimony decreed to be paid is not a debt, and therefore Mrs. Ridenour was not a creditor of her late husband in respect of such alimony, decreed to be paid by him; and therefore the deed derives no support in respect of the alleged alimony that was included in the consideration therefor. But, in our opinion, this argument is rather more specious than sound. It is true, alimony awarded is not regarded as a debt in the strict technical sense of that term; but the decree of the court awarding alimony imposes a duty and an obligation upon the party against whom it is passed, and confers a benefit and a means of support upon the person in whose favor it is made. It is enforced as a judgment or decree (Allen v. Allen, 100 Mass. 373; Tolman v. Leonard, 6 App. D. C. 224); and if the parties happen to reside in different States, such judgment or decree is enforced by the courts of the United States. Barber v. Barber, 21 How. 582. And a judgment or decree for alimony, or a settlement in
If, therefore, the true and additional consideration for the deed be such as is testified to by Mrs. Ridenour, there can be no doubt there was a valuable and an adequate consideration as against the existing creditors of the grantor.
The gravamen of the bill, in the effort to reach the property conveyed by the deed, is the alleged or supposed fraud and collusion of the grantor and grantee to cheat and defraud the creditor's of the former, and especially the plaintiffs; .and this charge, and the presumption sought to be raised and maintained in respect to the conduct of the parties, are largely predicated of the fact of the former relations that existed between the grantor and grantee in the deed—that of husband and wife. But, as said by the late Mr. Justice Jackson, speaking for the Supreme Court of the United States, in the case of Gottlieb v. Thatcher, 151 U. S. 271, 279, “the relationship of the parties does not, of and in itself, cast suspicion upon the transaction, or create such a prima facie presumption against its validity as would require the court to hold it to be invalid without proof that there was fraud on the part of the grantor, participated in by the grantee. This proposition is so well settled that authorities need not be cited in its support.”
In this case, the onus of proof throughout is upon the plaintiffs. It is incumbent upon them, not only to establish their claim as charged against Albert M. Ridenour, including as it does the crime of embezzlement, to the entire satisfaction of the court, but to show by clear and indubit
The effort to impeach her veracity was simply abortive. The single witness examined upon that subject is a brother of the late husband of Mrs. Ridenour, and he seems to be actuated entirely by persoiial prejudice to the divorced wife of his brother; and while he says there was a family prejudice against the woman, he admits that he had never heard that her reputation for truth and veracity was bad; and that the subject of her truth and veracity he had never heard discussed. There is really no ground for rejecting her testimony. And that being so, the question is, not what Albert M. Ridenour may have intended, or what reasons may have influenced him in making the deed, whether to defeat the claim of the plaintiffs or not, if the grantee in the deed has done nothing improper to procure its execution, but only accepted the deed, upon adequate valuable consideration, in good faith. In such case, the deed is beyond impeachment by the creditors of the grantor. This is settled and fully illustrated, by the case of Marbury v. Brooks, 7 Wheat. 556, and S. C. 11 Wheat. 78. In that case, it was held, as it has been held in many prior and subsequent cases, that a debtor had the right to prefer one
3. But it is insisted, that though it be found that there is a sufficient valuable consideration for the deed, made up of the pre-existing liabilities of the grantor, yet the deed must be treated as a voluntary assignment for the benefit of the creditors of the grantor, within the act of Congress of February 24, 1893, declaring void all preferences of one creditor over another; and that the grantee in the deed holds the property conveyed as trustee for all the creditors of the grantor.- But to this proposition we can not assent.
The act declares that every provision in any assignment
But in this case the plaintiffs have not treated the deed as a voluntary assignment for the benefit of a particular creditor under the act of Congress but they treat and proceed against the deed in their bill, as a conveyance made to hinder, delay and defraud creditors, under the Statute of Elizabeth; and they must stand by the case as they have presented it.
4. It remains to consider the question raised by the plaintiff’s objection to the admissibility in evidence of the copy
Neither of the documents objected to was put in issue by the pleadings in the cause. Indeed, the fact of the divorce was virtually conceded by the bill; but the plaintiffs alleged that the parties had subsequently cohabited together as man and wife. The documents were simply referred to and exhibited in support and corroboration of the testimony of Mrs. Ridenour, to show the extent of her means, and what constituted the consideration for the deed. For such purpose we think they were admissible; and clearly so under the Maryland statute of 1785, Ch. 46, Secs. 1 and 2, that statute being in force in this District. Ab. Comp. Stat. D. C., p. 220. These documents are sufficiently authenticated under the Maryland statute just referred to; and it is well settled that the method of authentication prescribed by the act of Congress of 1790 is not exclusive of any other which the States may think proper to adopt. 1 Greenl. Ev., Sec. 505. Upon the question of the applicability of the act of Congress, see the case of Turnbull v. Payson, 95 U. S. 418, 423.
In the case of the decree for divorce and alimony, the whole record, including pleadings and depositions, is not given, but only the decree, reciting the proceedings upon which it was founded; and this omission of the pleadings and depositions is made ground of objection to the admissibility of the certified copy of the decree. But looking to the purpose for which the decree was offered we think the
Finding no error, we shall affirm the decree of the court below; and it is so ordered.
Decree affirmed.
Reference
- Full Case Name
- DROOP v. RIDENOUR
- Status
- Published
- Syllabus
- Deeds ; Consideration ; Alimony ; Husband and Wife ; Burden of Proof ; Fraud ; Assignments for Benefit of Creditors ; Preferences ; Evidence ; Authentication of Documents. 1. It is competent for tbe grantee in a deed attacked for fraud to show by parol that the true consideration for the conveyance was greater than that recited, the only requirement being that the true or superadded consideration must be of the same nature and kind as that stated in the deed and not inconsistent with it. 2. The surrender of a claim for alimony due, or to become due, under a decree of court, constitutes a valuable consideration as against the creditors of a party bound to pay such alimony. 3. The existence of the relation of husband and wife between the grantor and grantee in a deed does not of itself create a prima faeie presumption of fraud against creditors. 4. When a deed is attacked by creditors as fraudulent and collusive and the charge includes one of embezzlement against , the grantor, the complainants must sustain the burden of proof which is upon them by clear and indubitable proof, and not upon presumptions and suspicions, o. In such a case, the conveyance, if for a valuable and adequate consideration, will be upheld as against the grantor’s creditors, however fraudulent his purpose in making it was, if the grantee had no knowledge of such purpose. 6. While an absolute conveyance of property by a debtor directly to one of his creditors in payment and discharge of a preexisting debt or liability, may have the effect of giving a preference to such creditor, it is not an assignment for the benefit of creditors within the meaning of the act of Congress of February 24, 1893, declaring void all preferences of one creditor over another in voluntary assignments for the benefit of creditors. 7. Where creditors attack a deed of their debtor to a third person as fraudulent, they cannot in the same suit, upon the failure of the proof to sustain the charge of fraud, successfully contend that it was, as an assignment for the benefit of creditors, void as making a preference. 8. The method of authentication of documents prescribed by the act of Congress of 1890, is not exclusive of any other which the States may adopt; so that a document offered in evidence in a suit in this District, insufficiently authenticated under that act of Congress, will be admissible if properly authenticated under the Maryland act of Assembly of 1785, Ch. 46, Secs. 1 and 2, in force here. 9. Where a decree of divorce offered in evidence in a collateral suit is not offered to operate as an estoppel, but only by way of explanation and as corroborative of other testimony, the failure to prove the pleadings and depositions in the divorce proceedings is not ground for rejecting the decree itself.