Whitman v. O'Brien

Citations

• 29 Pa. Super. 208
• 1905 Pa. Super. LEXIS 298

Syllabus

<p>Execution — Sheriff’s sale — Trust and trustees — Resulting trust.</p> <p>Where an attorney for execution creditors purchases land at a sheriff’s sale for a less sum than the amount of the claims of his clients upon which it is being sold, a resulting trust arises in favor of his clients. They have a right to claim the benefit of the purchase, and to demand a conveyance if they think fit to reimburse the sum actually paid, or an account for the profits in case of a resale. The purchase, however, is not absolutely void but voidable merely at the election of those beneficially interested, the execution creditors. If the execution creditors do not choose to assert their rights, junior judgment creditors have no standing to attack the judgment.</p> <p>If a creditor takes a judgment, or conveyance, or payment in any form, to secure an actual debt, the transaction will be valid against other creditors, although he knew (1) that the effect would be to postpone the others; (2) that tjie debtor intended it to have that effect; and (3) although he took it to aid that intent as well as to protect himself. The criterion is not the effect but the fraudulent intent. Without that the transaction cannot be impeached.</p> <p>To impeach the payment or securing of an actual debt there should be evidence tending to show either, first, some other advantage or benefit to the debtor beyond the discharge of his obligation; or secondly, some other benefit to the creditor, beyond the mere payment of his debt; or lastly, some injury to the other creditors beyond mere postponement to the debt preferred.</p> <p>The fact that a purchaser at a sheriff’s sale permits his debtor to remaiii in possession of the real estate after the sheriff’s sale is not ground for the inference of a fraudulent purpose to hinder, delay, and defraud other creditors of his debtor.</p>