Owen v. Sharp & wife
Owen v. Sharp & wife
Opinion of the Court
With every disposition to deprive the appellant, the fraudulent donee, of the fruits of his iniquity, it seems to me, that the repeated decisions of this court, the principles which regulate courts of equity, and considerations of public ^.policy, preclude us from giving relief in this case,'/ A fraudulent conveyance, though void as to creditors, is good between the parties. Being valid between the parties, it follows, that the fraudulent grantor cannot be permitted to allege his fraud to avoid his deed. -Accordingly, this principle was settled as early as the case of Hawes v. Leader, Cro. Jac. 270. an authority cited and relied upon in Starke's ex’ors v. Littlepage, 4 Rand. 368. as being founded on sound principles of law and policy. The case of Starke’s ex’ors v. Littlepage furnishes a striking illustration of the rule. The suit was brought by the representatives of the fraudulent grantee, to enforce the fraudulent conveyance; the debtor had continued in
If, then, the alleged trust had been in favour of the grantor, and he were the plaintiff, alleging that the deed was executed by him when embarrassed with debt, that though absolute and apparently for a full and valuable consideration, there was a secret trust that the property was to be held for his use, and to shew this trust he had proved the fraudulent intent in executing the conveyance, would a court of equity entertain him ? Even according to judge Coalter in Starke’s ex’ors v. Littlepage., the court would leave him where he had placed himself. Do the appellees occupy higher ground ? They are volunteers claiming the benefit of his act, seeking it through his fraud. An attempt was made to give a different colouring to the transaction, by the allegation, that the money which the fraudulent grantor furnished to his grantee to make the ostensible payment for the slave, was the money of the plaintiffs. But this allegation is not sustained, but rather disproved. It has been argued, that Oioen sets up the fraud to defeat the claim, and the case of Ward v. Webber, 1 Wash. 274. was relied on. In that case, the father had made an absolute conveyance to the daughter: after executing the deed, he got possession of it surreptitiously and destroyed it. The bill was filed by the daughter and her husband to set up the deed: the father answered, admitting the deed, but alleged it was made on condition his daughter
This view of the law and its application, is sustained by considerations of public policy. Men in the condition of Thompson are not likely to make such conveyances for their own benefit. They seek so to arrange' then- property as that the benefit may enure to those for whom they wish to provide, and upon whose kindness they can rely for support. The deed, to avail, must be absolute : this is necessary to deceive the public and defeat the creditor. If, after the creditor has been wearied out, the parties can be permitted to turn round, and shew that the recitals in the deed are false, made so with a fraudulent intent, and that there was a secret trust for the children of the grantor, the strongest inducement is held out to enter into such arrangements. It appears from the record, that the creditors of this grantor have been pursuing this property in the courts of Botetourt and Bedford; unsuccessfully, it maybe inferred, as this controversy for it has been commenced. If it had been well understood that the concealment of the fraud, though it might injure the creditors, could not benefit the plaintiffs, the creditors, perhaps, would have been more fortunate.
In addition to this objection to the claims of the plaintiffs, there is another which is insuperable. The two daughters arrived at full age and married, more than eight years before the filing of this bill. Owen had been their guardian; and at the settlement of his accounts the husband of one, and the brother and agent of the other, were present. A claim was then set up to the slaves, which Owen denied. He then claimed the property absolutely: even if there had been a trust originally, he then disclaimed it, and held the property adversely to the plaintiffs. About eight years elapsed after this settlement, before this suit was commenced.
The conduct of Owen, in this transaction, has been marked with the most heartless perfidy towards his confiding father-in-law and his children, and the grossest fraud. But standing in the position he does, it seems to me that the law protects him.
I think the decree should be reversed, and the bill dismissed, but without costs.
Stanard and Cabell, J. concurred. Decree reversed with costs; and cause remanded to the circuit superior court, with direction to dismiss the bill without costs.
Reference
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- Owen v. Sharp & wife and others
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