Dumas v. Clayton
Dumas v. Clayton
Opinion of the Court
delivered the opinion of the Court:
It is clear from all of the circumstances surrounding the transaction in question, as well as from Neill’s admission that he did not recognize the obligation of plaintiff’s demand and did not intend to pay it, that he took advantage of the time permitted to elapse between the announcement of the court’s opinion and the carrying of the same into a decree, to dispose of the only property that he had subject to execution on that decree, in order to prevent its collection.
As regards the conveyance to secure Dumas, which Neill executed with the intent to defraud the plaintiff, if Dumas knew of that intent and entered into the transaction, not only to secure a debt due to himself, but also to aid Neill in the execution of his purpose; or if he did not in fact actually pay over to Neill, without recall, the $3,000 alleged to have been loaned to him, and for which the security was in part given, then that conveyance is void as to the plaintiff, and the court was right in so decreeing.
The second ground is mainly relied on in support of the decree. If the plaintiff, having examined the defendants, is not concluded by their evidence to the fact of payment and of the motives of Dumas and Neill in the transaction, we think the-evidence is of such a character as to support the conclusion deduced therefrom hy the trial justice.
Dumas and Neill were intimate friends of many years standing, and had been engaged in at least one speculation together. But few checks could be produced showing payments to Neill by Dumas from 1902 to 1905, on which the alleged indebtedness of $3,500 was founded. It is true that one cannot reasonably be expected always to preserve canceled checks; but, as some were preserved, no satisfactory reason was given why all were not-
The defendants had the burden of showing the actual payment of the $3,000 in cash, and their evidence on that point is, to say the least, far from satisfactory. A check for the amount was given to Neill and was paid on April 8. It bears not only the indorsement of Neill, but that of L. Melendez King, who was Dumas’s attorney in the transaction. On the same day a cash deposit of $3,010 was made by Dumas. While he was able to remember two other deposits of smaller sums during the same week, he was not able to state the source whence this last and greater deposit had been obtained. The withdrawal and deposit were both in cash, and took place on the same day.
Dumas rested his case on the evidence elicited from himself and Neill in regard to this transaction.
L. Melendez King, who was Dumas’s attorney in the transaction, and who indorsed the Neill check, was made a party to the suit. While he participated in the trial of the case as attorney for some of the parties, he neither answered the bill nor was nailed to testify in regard to the payment of the cheek. If the
The contention of the appellant is substantially: That, as-Dumas and Neill were introduced and examined by the plaintiff, she is concluded by their statements as to the indebtedness, the payment, and the good faith of the defendants. In support of' this contention they cite Dravo v. Fabel, 132 U. S. 487, 33 L. ed. 421, 10 Sup. Ct. Rep. 170. All that seems to have been decided in that case was that by calling the adverse parties the party calling them made them his own witnesses. It was said: “While the plaintiffs were not concluded by their evidence, and might show they were mistaken, it could not be properly contended by the plaintiffs that they were unworthy of credit. The-evidence must be given such weight as, under all the circumstances, it is fairly entitled to receive.” From the somewhat meager statement of the conditions presented by that case, it would seem to confine itself to the proposition that one calling a witness, even the adverse party, cannot impeach him. The party is in no wise concluded by it, and it must be given such weight as, under all circumstances, it is entitled to. No attempt was made-here to impeach the witnesses. The question was whether, under all the circumstances of the case, their statements aforesaid were to be believed.
i In cases like this, it is generally necessary to call and examine-the parties to the alleged fraud, and because of their adverse interest they may be' treated as witnesses on cross-examination.. The object of the right of such cross-examination is to draw out of an unwilling witness all such circumstances as may tend to establish the perpetration of the fraud. And while the witness-cannot be impeached in the ordinary manner permitted in the case of witnesses called by the opposing party, his testimony goes to the jury, or the court if there be no jury, with such [weight as it may be entitled to under all of the circumstances. If a witness makes a direct statement, and then discloses cir
Tested by this rule, we think the court, trying the case on the facts as well as the law, was not bound to believe the positive statements of the witnesses, in the light of all the circumstances disclosed.
The decree will therefore be affirmed, with costs. Affirmed.
Reference
- Full Case Name
- DUMAS v. CLAYTON
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- Syllabus
- Fbaudulent Conveyances; Deeds of Tbust; Witnesses. 1. If the grantee in an alleged fraudulent conveyance, knowing of his grant- or’s fraudulent intent, accepts the transfer, not only to secure a debt due to himself from the grantor, but also to aid his grantor in the execution of a purpose to defraud his other creditors, the conveyance is void as to such other creditors. 2. Where the grantee in a deed of trust alleged to be fraudulent as to other creditors claims that the consideration therefor was the payment of an existing indebtedness of $3,500 and a loan of $3,000, and it ap pears that no such loan was made, the deed of trust is fraudulent and void. 3. In a suit to set aside as fraudulent a deed of trust on all his real estate made by a debtor during the short period which elapsed between the announcement by the court of an opinion adverse to him and the entry of a personal decree against him, where it was claimed by the beneficiary under the deed of trust that the consideration therefor was the payment of an existing indebtedness of $3,500 and a loan of $3,000, the testimony was reviewed and held insufficient to show that the deed of trust was supported by the consideration named and the decree setting it aside as fraudulent was affirmed. 4. Parties to an alleged fraudulent conveyance which is attacked by a creditor, who are called as witnesses by the creditor, may, because of their adverse interests, be treated as witnesses on cross-examination. 5. Where in a suit by a creditor to set aside a conveyance by his debtor as fraudulent, the complainant places the debtor and transferee on the stand to testify, he cannot impeach them in the ordinary manner permitted in the case of witnesses called by the opposite party; but he is in no wise concluded by their testimony, which will be given such weight by the court as, under all the circumstances, it is entitled to. 6. What favorable facts the party calling an adverse party to testify as a witness obtains from him may be regarded as wrung from a reluctant and unwilling person, while those which are unfavorable may be treated by the jury with just that degree of belief which they may think is deserved, considering their nature and the other circumstances of the case.