Case ID: tenn_42/html/0035-01.html
Source: Caselaw Access Project
Author: {"author": "Shackelford, J.,", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Carny, Howe & Co. et als. vs. J. B. Palmer, et als., and G. W. Reed & Co. vs. J. B. Palmer, et als.
    
    1. Fraudulent: Sam. Purchaser acquires no title. A, knowing that B has large claims against C, advises B that C is in failing circumstances, and that he could purchase the entire property of C at a reduced price; and learning that B is about to attaeh C’s property, and then Buys it for an inadequate consideration: Held, that this was an attempt on the part of A to aid C in perpetrating a fraud on his creditors, and he acquired nothing by his purchase.
    PROM SULLITAN.
    These causes were consolidated, and beard together before Chancellor Seth J. W. Luckey, at the May Term, 1861, when there was a decree in favor of complainants. Respondents appealed.
    J. M. & L. T. Logan, for complainants.
    James W. Deaderick, for respondents.
   Shackelford, J.,

delivered the opinion of the Court.

The complainants filed their attachment bills in the Chancery Court at Blountville, against Palmer and Bet-terton, charging that Betterton had colluded with Palmer in the fraudulent disposition of his goods. Palmer was in failing condition, and was largely indebted to com plainants and others, Betterton knew of the indebtedness of Palmer, advised the agents of complainants that Palmer would make a fraudulent disposition of his goods; that he could, for $1,000, purchase the stock within twenty-four hours thereafter. When he had. been informed the complainants were about suing out their attachment against Palmer, he purchased the stock of goods, amounting to about $2,800, for which he paid in part, a tract of land priced at $2,500, and- executed his note for the balance. The proof shows the title to the land was defective, a part of the original purchase money unpaid, and a part in litigation.

It is manifest to the Court this was an attempt on the part of Betterton to aid and assist Palmer in the perpetration of a fraud on his creditors-

There is no error in the record. The decree of the Chancellor will be affirmed.