Majority
Headnote
A receiver of the real and personal estate of the husband, appointed in a divorce suit under the provisions of the Revised Statutes (1 R. S. p. 148, § 60, which declare that the court “may sequestrate the personal estate of the defendant, and the rents and profits of his real estate, and may appoint a receiver thereof” ), does not acquire any title to the fee of real estate, but only the right to the possession thereof, and cannot maintain an action to set-aside absolutely a conveyance made by the husband in fraud of his rights, though he may have it declared void as far as his right to the possession is concerned.Carey had been required,, by an order of the court, to pay alimony for the support of his wife and the maintenance of his children. Upon proof that he-was secretly disposing of his property, both he and his attorney were enjoined from making any sale or transfer of his real estate, and subsequently, upon Carey neglecting to pay alimony as ordered, an attachment was issued against him for contempt, and the plaintiff was appointed receiver to take possession of Carey’s real and personal property, and hold it until he should give security for the payment of the alimony.
This appointment was made in pursuance of the Revised Statutes, vol. 1, p. 148, § 60, which authorizes the court, in such a case, to sequester the husband’s personal estate, and the rents and profits of his real estate, to appoint a receiver and to cause such personal estate and the rents and profits of such real estate to be applied towards the allowance for the wife, and towards the maintenance of the children, from time to time, as shall seem just and reasonable.
This statutory provision is in effect the same power which courts of equity previously exercised in the sequestration of personal and real estate, to enforce the performance of their orders and decrees, and in the disposition of the questions raised in this case, it will be necessary, first, to understand what was
After the appointment of the receiver and the sequestration ■of Carey’s real and personal property for the enforcement of the order for alimony and maintenance, Carey, though forbidden by injunction to do so, and though in contempt for not obeying the order, made a conveyance of a lot of land which he had in this city, to one John Whyte, for $4,000, subject to a mortgage to one Azel Graham for $1,500, and Whyte, at the same time, executed a mortgage upon the lot to Carey, for the sum of
The judge, at the special term, has found that both the conveyance by Carey to Whyte, and the assignment of the mortgage by Carey to Townshend, were fraudulent. He finds that at the time of the conveyance by Carey to Whyte, that Whyte knew of the existence of the divorce suit, of the injunction forbidding Carey to make any conveyance of his property, and of the appointment of the receiver, and that the conveyance was made by Carey and accepted by Whyte, in order to defeat the right of the wife .to enforce the payment of her alimony out of the estate of her husband, and that the mortgage was made and assigned to Townshend, to hinder and defraud the wife in the enforcement of her equitable rights in the divorce suit, and was part of a plan or confederacy between Carey, Whyte and Townshend, for the purpose of secreting and disposing of the property of Carey, in fraud of the wife and of her rights.
The judge was fully warranted in finding upon the evidence, that the conveyance of the lot by Carey to Whyte, and the mortgage by Carey to Townshend were made with this intent. Whyte knew of the injunction and of the appointment of the receiver. He discussed both matters in the presence of the witness Henry W. Carey. lie was an intimate friend of Carey, and co-operated with him in getting Carey’s stock of goods removed from the latter’s store in this city to his, Whyte’s store, in Jersey City. Townshend was Carey’s lawyer in the divorce suit, and prepared both the deed and the mortgage. He admitted when examined, that he knew that Carey was enjoined by the court from transferring any of his property. He was asked why he allowed his client, under such circumstances, to make a conveyance of his property, and he answered that he
The judge has found that the plaintiff, upon being appointed receiver, became vested with the real and personal estate of Carey in trust for securing the payment of the alimony, so far as the court had power to sequestrate his property for the satisfaction of the alimony, and that the plaintiff had the power to collect the rents, issues and profits of the premises, as far as might be necessary for the enforcement of the equitable rights of the wife.
This was not finding that the legal estate was in the plaintiff, as the appellants have argued; but simply that he became vested by his appointment, with the right to the immediate possession and as incident to it, the right to the rents and profits and the right to lease the property, with the permission of the court, that it might yield rents and profits to be applied to the payment of the alimony and the maintenance (Neale v. Bealing, 3 Swans. 304, note c; Haney v. Haney, 2 Ch. Rep. 49; Morris
The plaintiff being in possession of the real estate by the sequestration of it, his possession could not be disturbed without the leave of the court; for his possession is the possession of the court (Angel v. Smith, 9 Ves. 336; Lord Pelham v. The Duchess of Newcastle, 3 Swans. 290 a; Sea Ins. Co. v. Stebhins, 8 Paige, 565; Story’s Eq. Jurisp. 833 a; Daniell’s Chancery Practice, 1267, 2d Eng. ed.). A fraudulent alienation of the property can have no effect upon a sequestration, and this applies even to a voluntary conveyance executed before the sequestration, for the purpose of defeating it (Coulson v. Gardiner, 2 Ch. Cas. 42; 3 Swans. 279, note a; Cook v. Cook, Com. R. 712; Marquis of Caermarthen v. Howson, 3 Swans. 301, note a; Withan v. Bland, Id. 277, note a; Bird v. Littledale, Id. 299, note a; Hamblin v. Ley, Id. 301, note a); and it is said that where the purchase is made after the decree, it will not affect the sequestration, although the purchaser had no notice of the decree (Squib v. Snelling, 2 Ch. Cas. 47; Cook v. Cook, Com. R. 713). It will not affect valid rights previously acquired, and even a conveyance to an innocent purchaser for value made afterward will be protected, and when any right or title is claimed adverse to the sequestration, the practice is for the claimant to come into the court and be examined pro interesse suo, and if it appear to the satisfaction of the court, that the claimant has a superior right or title, the sequestration will be discharged as against him (Att'y Gen'l v. Coventry, 1 P. Wm. 309, note 1; Wharam v. Broughton, 1 Ves. 180; Daniell’s Chancery Practice, 1269, 1270, 1271); and though it was formerly questioned (Kaye v. Cunningham, 5 Mad. 406), it appears now to be settled, that the party for whose benefit the sequestration has been ordered may require the party claiming an adverse right or title to come in and show cause why he should not be examined pro interesse suo (Johnes v. Cloughton, Jac. 573; Brookes v. Greathed, 1 J. & W. 178; Hamlyn v. Lee, Seton on Decrees, 413; Daniell’s Chancery Practice, 1270, 1271). But though the court will interpose to prevent any disturbance of its receiver or sequestrator in his possession under
The judge further held that the plaintiff, as receiver, was entitled to ■ a decree adjudging the conveyance from • Carey h> Whyte, and the mortgage and the assignment of it to be void, and directed that they should be surrendered and canceled. This the court had no power to do. I am not aware that in any ease a court of equity has ever assumed to dispose of the real estate to enforce a compliance with its decree by a sequestration. The cases cited show that in England the court has never gone further than to take possession of the real estate, that the rents and profits might be applied under the decree; but whether any court of equity has or not, it is very clear that it cannot be done under our Revised Statutes in a case like, the present, the statute giving the right only to sequester the rents and profits. This in no way affects the legal title, or the transfer of it. It gives, by the sequestration, a right to the possession, and this being, as I understand, a vacant lot, the plaintiff, as receiver, has the constructive possession of it. The conveyance to Whyte in no way affected the plaintiff’s right to the possession. He could have applied to the court for liberty to lease the lot, that it might yield rents and profits, and if Whyte, or his grantees or heirs, assumed in any ■ way, by virtue of the conveyance, to interfere with or disturb the plaintiff’s right of possession, or any of the rights accompanying it, the court would interpose and enjoin him or them from doing so, and might proceed against them as for a contempt (Angel v. Smith, 9 Ves. 336). Though the conveyance was of no effect as against the sequestration, it was good and passed the legal title as between Carey and Whyte. Courts of equity order conveyances to be surrendered up and canceled as between the parties to
The act of 3858, ch. 314, empowers a receiver for the benefit of creditors or others interested in the estate or property
In my opinion the decree should have gone no farther than to declare the conveyance void and of no effect as against the sequestration, and the plaintiff’s rights as an officer of the court under it, and the enjoining of Townshend from foreclosing the mortgage whilst the property was sequestrated for the enforcement of the order for the payment of the alimony, and for the maintenance of the children, and upon the appeal the decree in my opinion should be so modified.
Loew and- Joseph F. Daly, JJ., concurred.
Judgment modified accordingly.