The Portland daily press., 1897-01-06
SUPREME JUDICIAL COURT
KENN EBEC COUNTY.

ann UnsEe Tr N Dsnn asa a. T. G. stiphen
claimant of funds mo opinion.
Rescript by strout, 1.-The defendant
holds policy of insurance against IRE
In each Of the two Insurance com panles
summoned as trustees Ahe insurer
property was burned on June IA, 1894.
The claim under both policies was as
signed absolutely to A. Q. Stilphen, the
claimant, on July 20, 1894. These assign
ments were disclosed by the trustees, and
thereupon Mr.. Stilphen was cited In ana
appeared; and the plaintiff filed allega.
tions. as provided by the statute. one OF
which was that the assignments were
without valuable consideration, and
therefore fraudulent and void, and ought
not to defeat plaintiff s attachment. On
hearing BY the court without jury, but
with right Of exception, it appeared THAI
proofs Of the loss were filed by Mr.. Stll-
phen with the Queen Insurance company
on December {, 1894, and with the New
Hampshire company on December 10,
1894. Mr.. Stilphen testified that at the
date of the assignment to him, Burnham
was indebted to him for money loaned,
evidenced by two notes on one OF Whlcn
there was due $16.50, and some interest,
and on the other $257.50, and some ~
terest. He held several notes of other
parties as collateral security to the nrst
note, some of which were good and some
not Aud the last note was s1gned Dy
Burnham and his wife. He also had in
his hands for collection the claims OF
Dingley Bros. and Reed. against Burn
ham, amounting 70 1928. % and interest,".
The debt due Stilphen would have been
sufficient consideration to support the
assignments. as collateral security, but
at hearing in the court below, and at the
argument in this court, Stilphen refused
to treat the assignments as coliateral,
and claimed persistently that the enJlre
amount due from the insurance cons
panies belonged to him. The amount ad-
mitted to be due from the companies was
more than double the debt due Still i.hen;
and considerably larger than his DEBT,
and that of Dingley Bros. and Heed com
biped. Stilphen paid nothing, sur
rendered no debt, and assumed no llabll1-
ty to Dingley Bros. or Reed, as consid,
Grafton for the assignments. He delayed
making proofs of loss, under the policies,
till more than four months after the as
signments, evidently Tor the purpose OF
avoiding the provisions of the 1nsolvent
law as to preferences, III case burnnam
should become subject to that law. py
voluntary or involuntary proceedings.
The conclusion 10 irresistible, from the
acts and testimony of StilpheD, that one
object of the assignments on his part,
was to withdraw this property from the
general creditors OF Burnham, ana nolu
the exuese above the debts OF St1lphen,
Dineley Brothers and Reed, for the per-
sonal benefit of himself, or the ultimate
benefit of Burnham. Sach purpose was
illegal and fraudulent as.to the general
creditors of Burnham. They were In fact
bindered and delayed by the transaction.
Being tainted in legal contemplation
with fraud, the assignments are absolute
" void, as to creditors and cannot be sus.
tanned to the extent of Stilphen's actual
debt. In Wadsworth VS.. Williams, 100
Mass, 100, the court say that "a convey
ance made with an actual purpose and
intent to defraud creditors, present or
future, is not valid against them In favor
Of q grantee who participates in the
fraudulent intention, although made for
full confederation, and by grantor in
the possession of any amount OF
property" This principle is sustained by
many authorities. Howe VS.. Ward, 8
Me-, 2o7; Thompson vs.. Pennell, " Ne,
1897 Whitney vs.. Kelley, 81 Me-, 377;
BlodRett Va. Chaplin, 48 Me-, 1926; Wheel-
den vs.. Wilson, A Me-, IS.
The court below should have treated
the assignments to Stilphen as fraudu-
lent and void, against attaching creditors.
and not allowed him to retain any part
Of the fraud The trusteesi should be
charged for the full amount due from
them, less their costs.
Plaintiffs exceptions sustained.
stilphen's claim disallowed. Trustees to
be charged for full amount in their
hands, less their costs.