Preston v. Horwitz

Citations

• 85 Md. 164
• 36 A. 710
• 1897 Md. LEXIS 29

Syllabus

<p>Laches — Fraudulent Conveyances — Insolvency.</p> <p>A bill by a trustee in insolvency to set aside certain conveyances of property by the insolvent because fraudulent as against his creditors, filed twenty years after the execution of the conveyances, sixteen years after the adjudication of insolvency and twelve years after the death of the grantee, is barred by laches.</p> <p>Between 1872 and 1875 certain conveyances of real estate absolute on their face were made by A. to H. In 1879 A. applied for the benefit of the insolvent law and H. was appointed his trustee, the assets reported being of little or no value. In the same year A. was discharged under the law. A. as administrator of his wife, who was a large creditor, claimed that the property covered by said conveyances had been conveyed to H. upon' a secret trust to shield the same from the creditors of A., and as security for money loaned by H. to A., and demanded the same from H. These demands were repudiated by H. and no steps were then taken to enforce them. In 1887 H. died. In 1892 a new trustee in insolvency for A. was appointed, and he filed a bill against the representatives of H. to vacate the conveyances on the ground of fraud. The creditors of A. who had asked for the appointment of the trustee, repudiated all allegations of fraud against H. and the bill was dismissed by counsel. Afterwards A. caused plaintiff to be appointed his trustee in insolvency, and in 1894 he filed the bill in this case containing the same allegations as the bill of 1892. Held,</p> <p>Tst. That the creditors, having delayed for many years and until after the death of H. to assert their claims, the bill must be dismissed for laches.</p> <p>2nd. That the fact that H., who was alleged to have been a participant in the fraud, was also the first trustee in insolvency of A., was no excuse for the delay, because the creditors could have themselves filed the bill to set aside the conveyance after or before the appointment of H.</p