William Young & Co. v. Ward

Citations

• 115 Ill. 264

Syllabus

<p>1. Fraudulent conveyance—facts in the particular case, as showing a fraudulent purpose. In this case the court state and discuss facts and circumstances in evidence, from which it holds that certain conveyances, and an assignment of a debtor’s interest in lands, and a sale of goods, were fraudulent as to creditors, reversing the decree of the trial court.</p> <p>2. Same—removal of prior incumbrance by fraudulent grantee—right of subrogation. A debtor in failing circumstances fraudulently conveyed his interest in lands, upon which were bona ficle incumbrances and liens, to his sons-in-law, who were cognizant of the intent to defraud creditors, some of whom, after such conveyances, having satisfied and discharged some of the incumbrances, in whole or in part: Held, that the court, in setting the conveyances aside, as having been made in fraud of creditors, should refer the cause to the master to state an account of the rents and profits, and ascertain what, if any, part of the incumbrances had been discharged since the making of the fraudulent transfer, and also the date and amount of all payments for such purpose, and the name or names of the persons making such payments, and report the same, and in the final decree subrogate the parties so paying to the rights of the parties holding such incumbrances paid.</p> <p>3. Same—rights of creditors of fraudulent assignor—declaration of forfeiture by vendor. A party holding a contract for the sale and conveyance of land, providing for certain payments in the future, fraudulently assigned the same to a son-in-law, to defraud creditors, the assignee paying nothing for the assignment. Shortly after such transfer, creditors of the assignor attached the land, when the vendor declared a forfeiture of the contract for non-payment of an installment of the purchase money, in violation of his agreement with the assignee to give further time: Held, that after the rights of the creditors had attached, the vendor could not declare a f