Opinion · Supreme Court of North Carolina
Den on Demise of Harris v. DeGraffenreid
33 N.C. 89
- Type
- Opinion
- Court
- Supreme Court of North Carolina
- Jurisdiction
- North Carolina
- Date
- 1850-06-05
- Topic
- litigation
Ruffin, C. J. There seems to have been a singular confusion of matters, entirely distinct in their nature, in the mode of stating the propositions on the part of the plaintiff, at the trial. Although the lessor of the plaintiff was not a creditor, and did not claim under a creditor, of Rives, but was a purchaser from that person after he had made the deed of trust, yet it was insisted for the plaintiff, that the deed of trust was fraudulent and void against the creditors of the maker, and therefor, was void also as to the lessor of the plaintiff, Now, in the first instance, it does not appear, that the deed of trust could have been void as against creditors: since there were no creditors, as far as we sec, but those secured in the deed, and, as to them, no fraud can be inferred, as the fund was *92 ample to pay them all and produced enough for that purpose, even according to the sums set forth in the deed. In the next place, it does not follow that the deed of trust would be void as against Harris, although it might have been fraudulent as to certain creditors of Rives : for, although the same facts, which make a deed fraudulent under the 13thBliz. as to creditors, may, generally speaking, render it fraudulent also under the 27th Eliz. as a« gainst a purchaser,yet it is clear, that a deed is not fraudulent as against a purchaser, merely because it was so as against creditors.
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2. Although one of the debts inserted in a deed of trust to secure several creditors be fraudulent, yet the legal title passes to him, and his sale to a third person is valid.
On 13 December, 1847, Rives sold and conveyed to Harris, the lessor of the plaintiff, 100 acres of land, parcel of the above tract, at the price of $200, which Harris then paid. Evidence was given that the same was worth at the time from $300 to $400.
On 31 January, 1848, Crutchfield, in pursuance of the terms of the deed, exposed the whole tract of land for sale to the highest bidder, and the defendant became the purchaser at the price of $480.50, then paid down, and took a deed from the trustee. Evidence was given that the value thereof was $500 or $600.Page 75
The plaintiff alleged that the deed of trust was made with the fraudulent intent to delay and hinder the creditors of Rives, and was therefore void as against the creditors and the lessor of the plaintiff. In support thereof the plaintiff examined the said Rives as a witness; and he deposed that a large portion of the debt to Perry, mentioned in the deed, was not owing by him, and was inserted by an arrangement between him and Perry, with a view to save his land or a part of it for the benefit of his family; that the other debts mentioned in the deed were just, and that Crutchfield, the trustee, was not aware of the fraudulent arrangement between the witness and Perry, and was told by them that everything was fair. The plaintiff gave further evidence that just before the sale by the trustee a person stated to the defendant that the plaintiff had purchased a part of the land, but that he did not think he intended to (91) claim it.
The counsel for the plaintiff thereupon moved the court to instruct the jury that the deed of trust was fraudulent and void, and that if the jury believed the witness, the defendant had, at the time of the purchase from the trustee, such notice of the claim of the lessor of the plaintiff as prevented the defendant from acquiring the title by the sale and deed from the trustee. But the court refused the instruction as prayed for, and told the jury that, supposing the deed of trust to have been executed with the fraudulent intent imputed to it, yet, if the defendant purchased for a fair price and without notice of such fraudulent intent, the title was good; and that there was no evidence that the defendant had notice of the alleged fraudulent intent in the execution of the deed. The jury found for the defendant, and after judgment the plaintiff appealed.
No counsel for defendant.
(93) But the Court holds that the defendant was entitled to a verdict upon the other ground, that the legal title vested in the trustee, in virtue of the separate trusts in favor of the several real creditors secured in the deed, according to the principle laid down in the recent case ofBrannock v. Brannock,32 N.C. 428, there being no imputation of collusion between them or the trustee and the other parties, Rives and Perry. That case shows that, whatever relief Harris might have in another forum, out of the fund applicable to the debt of Perry under the deed, by reason of the fraud and illegality of the trust for that debt, yet the title of the trustee was not thereby avoided atPage 77law. Consequently, the conveyance of the trustee to the defendant must likewise be effectual at law. Of course, the defendant's purchase could not be affected by notice of the claim of Harris, if there had been the most direct and sufficient evidence of notice, inasmuch as the title of Harris was intrinsically defective, being posterior to the deed of trust and not for full value, and consequently notice of it could not impart to it new validity.
PER CURIAM. Judgment affirmed.Cited: Stone v. Marshall,52 N.C. 303;Morris v. Pearson,79 N.C. 258,262;Savage v. Knight,92 N.C. 500;Abernathy v. R. R.,150 N.C. 107.
(94)