Citizens' Mutual Insurance v. Foster

Citations

• 64 Miss. 288

Syllabus

<p>1. Chancery Practice. Certain allegations inconsistent with, purpose of hill. Fraud, when immaterial. Case in judgment.</p> <p>F. & Co., a commercial firm, made an assignment to one S. for the benefit of creditors. S. appointed F. his agent to collect the assets. F. did collect such assets and bought real estate therewith, taking the deeds in his own name. S. then filed a bill to have the property sold and the proceeds devoted to the purposes of the assignment. This suit was compromised by C., the wife of F., paying six thousand dollars to S. and the costs of the suit, and assuming the individual'debts of F., and S., as assignee, releasing to her his claim to the property in question. There was a consent decree to this effect. F. afterward caused the legal title to the property to be conveyed to his wife. Thereupon certain creditors of F. filed a bill against F. and C. to subject this property to the payment of their claims, alleging that the compromise was fraudulently induced by F. to hinder, delay, and defraud his creditors, and that F. furnished the entire consideration for the conveyance of the property to his wife. Held, that since the bill does not seek to vacate the consent decree, and the validity of the compromise is essential to the relief asked, the question of fraud in the procurement of that decree is immaterial, the sole question being whether F. or his wife furnished the consideration for the compromise.</p> <p>2. Same. Charge of fraud. Based on conveyance of legal title by trustee.</p> <p>In the case above stated, F. when he held the legal title to the property in question was trustee for S-, assignee, and, as creditors of the firm of F. & Co. could not subject such title to the payment of their claims, they cannot predicate a charge of fraud on the fact that F, has conveyed it to his wife.</p> <p>3. Same. Consideration. Evidence of. Case in judgment.</p> <p>In the above stated case, it was shown that the brother of F. lent the wife a part of the