Chatterton v. Mason

Citations

• 86 Md. 236
• 37 A. 960
• 1897 Md. LEXIS 110

Syllabus

<p>Fraudulent Conveyances—Rights of Creditors of Grantor—Rights and Liabilities of Grantee who has Paid a Consideration—Subrogation of Grantee to Claims of Creditors Paid by Him— Testimony in Equity Cases—Proof of Claims—Prayer for General Relief.</p> <p>A deed and bill of sale made and accepted by the grantee with intent to delay or defraud the existing creditors of the grantor will be vacated, although the grantee therein paid full value for the property. As against creditors, a transfer of property must be bona fide as well as for value.</p> <p>A man indebted to different creditors to a large amount sold and conveyed his visible and tangible property to his father who had knowledge of the facts and aided his son in putting the property out of the reach of creditors. Some of the money so obtained was used in paying certain creditors who had issued attachments against the son or threatened to have him adjudged an insolvent, and part of the money was concealed. Some of the property was afterwards turned over to a corporation of which the son was general manager. Held. that the conveyances were fraudulent and void as to the creditors of the son who were such at the time of the transfer.</p> <p>A debtor in failing circumstance_s conveyed all his visible property to his father for the purpose, participated in by both, of delaying and hindering the creditors of the former. The purchase money was paid. Part of the property had been previously attached by a creditor and a certain sum was paid by the grantee to release the attachment. The grantee also paid certain other creditors of the grantor. Upon a bill to vacate the conveyances, Held,</p> <p>1st. That although the conveyances were void as to creditors yet the grantee should not be ordered to pay into Court the entire value of the property conveyed to him, without any deduction for the payments made by him to creditors.</p> <p>2nd. That if the attachment was valid and the payment of the attaching creditor necessary, th