McGowan v. Hitt

Citations

• 16 S.C. 602
• 1882 S.C. LEXIS 36

Syllabus

<p>1. A man on the eve of his marriage, and on the alleged consideration of the marriage, but with intent to defeat the claims of his creditors, conveyed his entire visible estate to his intended wife, she being ignorant of his fraudulent purpose. Held, that the deed was fraudulent, and its terms were sufficient to charge the wife with notice and to affect her with the fraud.</p> <p>2. And the deed being recorded, creditors of the husband were chargeable with notice of the fraud which the terms of the deed disclosed.</p> <p>3. Distributees of an estate having given to an administratrix, in 1861, their bonds, with sureties, for purchases at the estate sale of personalty, it would seem that the administratrix, by reason of the sureties’ rights, have proceeded in equity to subject the distributive shares of the principals to the extinguishment of their indebtedness.</p> <p>4. A creditor cannot be said to have so exhausted his legal remedies against a surety as to entitle him to ask the aid of the Court of Equity to reach property fraudulently conveyed away, until he has exhausted his legal remedies against the principal and other .surety also.</p> <p>•5. A debtor fraudulently conveyed away his estate, pending action against him. From failure of the courts to sit, and other causes, judgment was not obtained until seven years afterwards, and thereupon plaintiff promptly proceeded in equity to reach the property so transferred. Without imputing any laches to plaintiff in obtaining his judgment — Held, that the Statute of Limitations commenced to run from the discovery of the fraud, and was not suspended until judgment obtained at law; and that the suit in equity was barred. McIveb, A. J., dissenting.</p>