Jewett & Root v. Cook

Citations

• 81 Ill. 260

Syllabus

<p>1. Fraudulent conveyance—title of one derived through. If a sale of goods is made to defraud creditors, and is only colorable, and the purchaser makes a pretended sale, which is not bona fide, and the latter purchaser sells the same goods to an attaching creditor of the original owner, in payment of his debt, taking his note for the balance of the price, and the attachment is .dismissed, the goods will be liable to attachment by any other creditor of the original owner, if the first attaching creditor knew of the fraudulent character of the first sales under which he derived his title. His purchase will be tainted with the fraud, although he may have paid a valuable consideration to secure his own debt.</p> <p>2. Same—must be proved. A sale of goods by a debtor, in the absence of proof to the contrary, will be presumed to be bona fide and honest, and it will also be presumed that the price paid was the full value of the property.</p> <p>3. Same—evidence of. The fact that a party purchases goods for $1000, and soon after sells them to another for $800, though a circumstance against the good faith of the transaction, is not sufficient evidence to defeat the sale or establish fraud.</p> <p>4. Same—affidavit for attachment as evidence against creditor purchasing from vendee. Where a creditor made an affidavit for an attachment, in which he alleged that his debtor had fraudulently sold his goods, and attached the same, but afterwards purchased the same goods from a second purchaser, to secure his debt, and gave his note for the excess of the price above his debt, and they were again attached by another creditor: Held, that the purchaser’s affidavit, though evidence against him, was not sufficient to establish the fraudulent character of the sale, as against him; but if the fraud were shown otherwise, it would show he had notice of the fact.</p> <p>5. Evidence—declarations of vendor to impeach sale. The admissions and declarations of the vendor of goods, and those of h