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Battle, trustee, et al. v. Williford, trustee

Supreme Court of Georgia1925-04-24No. No. 4476
160 Ga. 289

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Opinion

majority opinion

Hill, J.

1. The court did not err in overruling the general demurrer to the petition, for the reason assigned, that the petition did not allege that the property of the bankrupt was not sufficient to pay his creditors in full. The petition did allege that at the time of making the transfer the bankrupt was insolvent, and that allegation was sufficient to withstand a general demurrer.

2. The defendants demurred specially to the petition as amended, on the ground that it did not allege or set out therein the names of any creditor or creditors of James H. Battle at the time of the execution of the deed of assignment made by James H. Battle to Mrs. Louise Battle Whiteley. Seld, that the petition • should have set out the names of the creditors of James H. Battle, and that the court erred in not sustaining that ground of the special demurrer.

3. As the court erred in overruling the special demurrer, all subsequent proceedings were nugatory.

Judgment reversed.

All the Justices concur.

By an amendment the plaintiff alleged, that the conveyance made by Battle of his life-estate in the stock was voluntary, without consideration, and made while James EL Battle was insolvent, and with the intention to hinder, delay, and defraud, and defeat the creditors of Battle in the collection of their debts from Battle; that the conveyance purports to have been made in 1914, but that the same was not made in 1914, and if made at that time it was for the purpose of defeating, hindering, and defrauding his creditors;that at the time of the conveyance Battle owed debts which are now in existence against him and which are filed as legal claims against his bankrupt estate, and this plaintiff as trustee represents creditors whose claims were in existence at the time of the making of the fraudulent transfer, which debts Battle sought to defeat; that Louise Battle Whiteley did not know of the contents of the paper until after the filing of the petition in bankruptcy by Battle; that the making of the paper and the production of the same by Battle was done as a scheme for the purpose of pretending to have made a conveyance to his daughter for the purposes alleged; that no consideration whatever was paid by Louise Battle Whiteley to J ames H. Battle for the stock, and if. any was paid that it was done with a thorough knowledge on her part of the general scheme on his part to defeat and defraud his creditors; that at the time of making payment to James H. Battle, if any was made, Louise Battle Whiteley had notice of the fact that James H. Battle was charged and accused by his creditors with having fraudulently conveyed all of his estate for the purpose of defeating and defrauding them in the collection of their debts; -that the assignment of the stock is too indefinite to operate to pass title to the income from any particular stock, or to be enforced against the trustees or the Georgia Bailroad & Banking Co. Plaintiff prayed, that James H. Battle and Minnie Battle Allen, as trustees under the will of Lawrence Battle, be enjoined from paying the dividends on the stock to Louise Battle Whiteley or to any other pprson except the plaintiff as trustee; that the conveyance made by James ED. Battle to Louise Battle Whiteley be declared void and set aside, and the court require Louise Battle Whiteley to deliver said paper to be canceled; that the court decree that plaintiff be entitled, as trustee in bankruptcy of the estate of James H. Battle, to the life-estate of James EL Battle in said stock, and that his title thereto be set up and established; and that plaintiff be given judgment against Louise Battle Whiteley in the sum of $243 as the dividends from said stock that have been paid over to her since the bankruptcy of James H. Battle; there was also a prayer for general relief and for process.

The court overruled demurrers, both general and special, to the petition; and to this judgment the defendants excepted.

L. D. McGregor, for plaintiffs in error.

J. P. Wilhoit and M. L. Felts, contra.