Redfield v. Hewes

Citations

• 67 Miss. 479

Syllabus

<p>Fraudulent Conveyance. Constructive fraud. Reimbursement of purchaser.</p> <p>An insolvent sold his stock of goods to certain creditors for $1107. After-wards other creditors filed a bill attacking the sale as fraudulent,'and the debtor testified that the transfer was a mere pledge, with the privilege to re-purchase; that the purpose was to coerce other creditors to compromise, and that $400 of the consideration was to be used in effecting such compromise at fifty cents on the dollar. Defendants denied all fraud, and alleged that the sale was absolute and in good faith. After keeping the stock for nine months and improving it, they sold it for $2201, part credit. Complainant’s testimony tended to show that the stock was worth $2500 or more, but defendants claimed that its value did not exceed $1000. The court below set aside the sale, and gave a decree against the purchasers for the amount of complainant’s debts, $1453. Held, error. The case is assignable to the middle class between actual and constructive fraud. The sale should be set aside, but upon terms to do justice. Cause remanded, with directions to take an account of the value of the goods and the amounts paid out by defendants.</p>