Lucas v. Clafflin & Co.

Citations

• 76 Va. 269
• 1882 Va. LEXIS 30

Syllabus

<p>1. Fraudulent Conveyances.—To avoid a deed for fraud there must be a real design on the part of the debtor to prevent the application of his property, in whole or in part, to the satisfaction of his debts. He may satisfy or secure one debt in preference to another; and a creditor may take payment or security for his own debt, though he knows that thereby other creditors may lose their debts.</p> <p>2. Idem—Preference.—To prevent one creditor from acquiring preference by attachment or execution, debtor may pay or secure others, without imputation of fraud. The fact that part, or all of the debts secured, were already secured, does not of itself show fraud, provided the debtor does not divert or withhold his property from payment of his debts.</p> <p>3. Tax on Deeds.—Code 1873, ch. 36, § 11, provides that “ no deed shall be admitted to record until the tax is paid thereon.” This is directory. . Clerk may refuse to admit the deed to record until the tax is paid. But if he chooses to admit it without prepayment, he assumes the tax and the admission to record is valid. Hill v. Rixey, 26 Gratt. p. 80, distinguished from this ease.</p> <p>4. Case here.—S, a merchant in A, conveyed in trust to secure thirteen debts, amounting to 84,100, and a fourteenth debt due to C & Co., a stock of goods worth $10,000. Afterwards C & Co. obtained judgment for $7,710.29, and caused fi.fa. to be levied on the goods, after executing indemnifying bond to the sergeant. One debt secured was for ground-rent of the store, another was for taxes, and others were also previously secured. Under theji. fa. the goods were sold for less than the amount of the execution. Suit on the indemnifying bond was brought, and judgment was for C & Co., defendants. At the trial it was proved that trustee knew that “ the deed was made to prevent C & Co. from coming in and getting all,” and an instruction was given', on the motion of defendants, to which plaintiff excepted ; which instruction, in substance, is as