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Wheaton v. Sextons Lessee

Supreme Court of the United States1819-02
4 Wheat. 50317 U.S. 5034 L. Ed. 626SCDB 1819-0311819 U.S. LEXIS 327

Summary

Holding. The judgment is reversed because the trial court's instruction to the jury was erroneous in stating that a deed was void if made without valuable consideration or with intent to defraud creditors; a deed supported by adequate valuable consideration and made in good faith cannot be voided on the ground of intent to defraud creditors alone.

In this ejectment case, the defendant purchased property at a marshal's sale based on a judgment against Wheaton. Wheaton had previously executed a deed conveying his interest to a trustee for the separate use of his wife. The defendant challenged the validity of this conveyance as fraudulent against creditors. The trial court instructed the jury that the deed was void if made without valuable consideration OR with intent to defraud creditors. The Supreme Court found this instruction legally defective because it could void a deed made for valuable consideration merely based on intent to defraud creditors, a position unsupported by law.

The Court explained that when a deed is supported by valuable and adequate consideration and represents a bona fide change of property, it cannot be voided simply because it was made with intent to defraud creditors. The substitution of property for the judgment debt satisfies creditors' interests. Additionally, the Court rejected the notion that making such a conveyance to benefit one's family inherently renders the deed fraudulent, particularly where a trustee rather than the husband is the benefactor.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Validity of marshal's sale executed after the return day of the writ
  • Whether a voluntary conveyance to a wife's separate use is fraudulent against creditors
  • Standard for determining when a deed with valuable consideration is void as fraudulent

Procedural posture

An ejectment action was tried in the lower court, which ruled against the plaintiff, and the defendant appealed to this Court.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Mr. Justice Johnson

delivered the-opinion of the Court.

, The suit below was ejectment, and the defendant in this Court recovered under a title derived from asaleby. the marshal of this District. The mar-, shal’s deed conveys the life estate of Wheaton in the lands in question. And the plaintiff below proved the title in the defendant’s wife, under conveyances executed after marriage.

The defence set up was a conveyance executed by Wheaton, to a trustee, for the sole and separate use of his wife, and her heirs, and the deed purports to have been executed in consideration, of, and to carry into effect, an original intention in the parties, that the conveyances tó his wife should enure to the same uses, although the conveyances in law operate otherwise. But .there is no other evidence of this fact than what is contained in the deed, and it was executed but two days before the judgment. At the -trial, .two bills of-exception were taken ; the first of which brings up the question, whether a sale by the marshal, after* the return day of the writ, was legal. The Court charged that it was, provided the levy was made before the return day. And on this point the Court can only express its surprise that any doubt could be entertained. The Court below were unquestionably right, in this instruction. The .purchaser depends on the judgment, the levy, and the deed.- °A11 other questions aré between the parties to the judgment and the marshal. Whether the marshal sells before or after the return, whether he makes a correct return, or any return at a]l, to the Writ, is immaterial to the purchaser, provided the writ was duly issued, and the levy made before the return.

The second bill of exception§Jbrings up the question, whether the deed, to Caldwell, in trust for Mrs. Wheaton,^was not fraudulent and void as against : creditors. In ordinary cases, a voluntary conveyance of a man to the use of.his wife, when circumstanced as Wheaton was, would unquestionably be void. But it is contended that, in this instance, a Court of Equity would have decreed Wheaton to make the conveyance he did execute, and, therefore, it Was not a voluntary, conveyance. That there are cases in which the Court would lend its aid to protect the acquisitions of a wife from the creditors of a husbaud, may well be admitted ; but on this, case it is enough to observe, that if the husband may, upon his own recital, make out such a case, there would no longer exist any difficulty in evading the rights of creditors. Yet this Court is not satisfied that the Court below has given an instruction that comports with the law of the case.

The instruction of the Court, given on motion of the plaintiff below, is, that the deed was void in law, “if it was made by the said Joseph Wheatoc without a valuable consideration therefor, or was made by him with intent to defeat, delay, or defraud his creditors.” Had the conjunction and been substituted in this, instruction for or, it would have been ehtirely unimpeachable.; but as it now reads, it must mean, that even had a valuable consideration been paid, if the. deed was made with intent to defeat creditors, it vyas void. We know of no law which avoids a deed where a valuable (by which, to a general intent, must also be understood adequate) consideration is paid, and the change of property be bona .fide, or such as it professes to be. Of such a contract it cannot be predicated that it is with intent to defeat or defraud creditors, sincej although the property itself no longer remains subject to the judgment, a substitute is furnished by. which that judgment may be satisfied. Nor is it any impeachment of such a deed that it is made to the use of the family. of the maker. The trustee, in that, case, becomes the benefactor, and not the husband. It is not a. provision made by him for his family, but by another.

Although, from, any thing that appears in this cause, this Court can see no ground on which the jury could have found otherwise than they did, yet if the instruction was erroneous, and to the prejudice of the defendant below, as this Court cannot estimate its influence on the minds of the jury, the judgment must be reversed.

Judgment reversed.