Court Opinion

ID: 9810508
Source: CourtListenerOpinion
Date Created: 2023-08-31 21:52:08.032226+00
Date Added: 2024-06-11T13:39:58.841454
License: Public Domain

BeowN, J.,
dissenting: The following is the first issue:
1. Did the defendant E. P. Cook, at the time of the execution of the deed in controversy to his wife, the feme defendant, M. V. Cook, retain property fully sufficient and available for the satisfaction of his then creditors ?
The plaintiff in apt time requested the court to instruct the jury that “There is not sufficient evidence in this cause to show that E. P. Cook, at the time of the execution of the deed to his wife, M. Y. Cook, retained property fully sufficient and available for the satisfaction of his then creditors, and you will answer the first issue No.’ ”
The court refused to give the instruction, and the plaintiff excepted.
I am of opinion, upon all the evidence, the prayer should have been given. Actual insolvency is not necessary in order to render a voluntary conveyance void; for if a person, largely indebted, makes a voluntary conveyance, and shortly afterwards becomes insolvent, that is enough to set aside the conveyance as fraudulent.
Wherever the amount of the property so closely approximates the amount of the liabilities that the conveyance would have a direct tendency to impair the rights of creditors, if they should attempt to force collection by judicial process, the debtor is adjudged insolvent. Rose v. Dunklee, 12 Col. App., 403.
The act of 1840, now section 962 of the Revisal of 1905, provides that no voluntary conveyance or gift by one indebted shall be deemed to be void “if property, at the time of making such gift or settlement, fully sufficient and available for the satisfaction of his then creditors, be retained by such donor or settler.”
The property must be available to the creditors owning the debts existing at the time of the gift or settlement. The property must be available when such debts become due and payable, and if payment is refused, the property, must be available at the time when the creditor, by the exercise of all due diligence, should reduce debt to a judgment. House v. Hughes, 1 Fla., 133; Edmunds v. Mister, 58 Miss., 765; Cock v. Oakley, 50 Miss., 628; S. v. Koontz, 83 Mo., 323; Pomeroy v. Bailey, 43 N. H. 118; Williams v. Hughes, 136 N. C., 58; Black v. Saunders, 46 N. C., 67.
In the last named case it is held as a matter of law that twenty negroes and two tracts of land valued at $7,250 is not property fully sufficient and available to pay debts amounting to $6,848. ■ In the opinion Chief Justice Pea/rson says: “No man would lend money upon such security; he would require property of this description to exceed the debt at least one-third, -if not one-half.”
*57Accepting defendant’s own valuation upon Ms property, wMcb should be taken cum grano salis, at time be conveyed the property in controversy to bis wife, bis remaining assets exceeded bis liabilities (after deducting homestead and personal exemption) only $610. The bulk of property retained is of a very fleeting and unsubstantial character. Among the assets are mules, cattle, stock of goods, store accounts, binder, buggy, drill and wagon; total value, $2,260. The store accounts alone amount to $400, and there is no evidence that they can be collected.
To my mind, it is perfectly evident that the defendant was practically insolvent when he executed the deed to his wife, and that he did not retain property fully sufficient and available within the meaning of the statute.
Mb. Justice WaleeR concurs in this opinion.