Majority
Headnote
1. Fraudulent Conveyances—Evidence.The mortgage in question is dated 24, 1885, purports to secure $1,800 and interest, and was executed by the defendant' Edward E. Ham to his attorney, Joshua B. Ban-, dall, who, on the same day, assigned the same to Sarah E. Ham, the wife of the mortgagor, and she, on the 14th day of January, 1892, assigned the same to the plaintiff, who is the daughter of said Edward E. and Sarah E. Ham, with whom she then' resided. Ho consideration passed from the mortgagee, Bandall, to the mortgagor, and none on said assignments at the times of these transactions. The plaintiff claims that the mortgage was given, in pursuance of a prior arrangement with his wife, as security for an indebtedness then owing by him to her, the title passing through Bandall as a matter of accommodation. The defendant Gilmore claims that the mortgage was given without consideration from any one, and for the fraudulent purpose, to the knowledge of all parties, of preventing the collection of certain claims upon which the mortgagor was liable to him, one of which, on the 2d day of January, 1891, ripened into a judgment in favor of said Gilmore against said mortgagor for $1,069.47.
To determine these questions of fraud and of lack of consideration it is necessary to go considerably into the business history of the mortgagor and his wife and her sister, Helen Gilmore, and
Gilmore, in the year 1869, suddenly left the state, and remained away for many years. He left the entire partnership property in the hands of his partner, Edward E. Ham. The value of that property is placed by Mr. Ham at about $1,000 or $1,200, but Gilmore testifies that a short time prior to his leaving they took an inventory thereof, and that at the time he left the state it was worth the inventoried value, viz. $7,000. He also testified that Mr. Ham himself, also, on a former trial testified that it was worth at that
At the time of giving this mortgage by Ham to his wife (through his attorney), we find, therefore, this condition of things existing: Mr. Ham liable contingently to Gilmore on the note matter for about $1,000; liable to an accounting to Gilmore for his share of the partnership assets, worth $7,000, less his share of the indebtedness paid by Ham, and interest; Hable jointly with his wife to an accounting to Gilmore for the value of the property of their sister, which they were fraudulently covering, in the sum of $2,-276.1.0; and Mr. Ham insolvent. A voluntary conveyance by an insolvent to a member of his family is presumptively fraudulent. Smith v. Reid, 134 N. Y. 568 , 31 N. E. 1082 . Mr. and Mrs. Ham testify that fraud was not intended by them, but fraud may be established by circumstances as against the denial of such intent by aE the witnesses interested in supporting the validity of the transaction. Parker v. Conner, 93 N. Y. 118 ; Van Mater v. Burns (Sup.) 27 N. Y. Supp. 624 .
Cases cited
- Smith v. Reid 134 N. Y. 568 p. 128, p. 129
- Parker v. Conner 93 N. Y. 118 p. 128
- Bleecker v. Johnston 69 N. Y. 309 p. 129
- Brady v. Manhattan Railway Co. 127 N. Y. 46 p. 129
- Coleman v. Burr 93 N. Y. 17 p. 129