8 49. Transactions between relatives.-The mere fact of relationship between the parties to a transaction which is prejudicial to the interests of creditors does not establish fraud. A debtor may deal with his relatives the same as with strangers, and business dealings between them are to be treated as are the transactions of other people, where the circumstances are not so unequivocal as to compel an inference of fraud, but could exist consistently with an innocent intent and honest purpose.81 In some cases it is held that no stronger degree of proof of the validity of a transaction between relatives is required than if it was between strangers,82 but other cases hold to the contrary. It is held by the weight of authority, however, that the fact of relationship may cast suspicion on the transaction and lend credence to the claim that it was the result 83 665, 25 S. W. 568; Woodard v. Martin, 106 Mo. 324, 17 S. W. 308; Snell v. Harrison, 104 Mo. 158, 16 S. W. 152. 79. Attachments held fraudulent as against debtor's other creditors.-H. T. Simon-Gregory Dry Goods Co. v. Newman, 50 La. Ann. 338, 23 So. 329; Craig v. California Vineyard Co., 30 Or. 43, 46 Pac. 421; Zadik v. Schafer, 77 Tex. 501, 14 S. W. 153. Attachments held not fraudulent.-Adair v. Feder, 133 Ala. 620, 32 So. 165; Cartwright v. Bamberger, 99 Ala. 622, 14 So. 477. 80. Judgment held to be fraudulent as against other creditors.— Walton v. First Nat. Bank, 13 Colo. 265, 22 Pac. 440, 16 Am. St. Rep. 200, 5 L. R. A. 763; Lesser v. Driesen, 2 Lack. Leg. N. 343; Douglass v. Ward, 11 Grant Ch. (U. C.) 39. Judgment held not to be fraudulent.-Sackett v. Stone, 115 Ga. 466, 41 S. E. 564; Citizens' F., etc., Ins. Co. v. Wallis, 23 Md. 173; Green v. Huggins (Tenn. Ch. App. 1898), 52 S. W. 675; Snowball v. Neilson, 16 Can. Sup. Ct. 719; Powell v. Boulton, 2 U. C. Q. B. 487. 81. N. Y.-Jackson v. Badger, 109 N. Y. 632, 16 N. E. 208; Nichols v. Nichols, 40 Misc. Rep. 9, 81 N. Y. Supp. 156. U. S.-Gottlieb v. Thatcher, 151 U. Ill.-Nott v. Shutts, 87 Ill. App. 341. 690. Ky.-Warden v. Fulkerson, 22 Ky. L. Rep. 184, 56 S. W. 717; First Nat. Bank v. Lancaster, 12 Ky. L. Rep. 541, 14 S. W. 536. Mo.-Ettlinger v. Kahn, 134 Mo. 492, 36 S. W. 37; Shotwell v. McElhinney, 101 Mo. 677, 14 S. W. 754. N. C.-Southern Flour Co. v. McIver, 109 N. C. 120, 13 S. E. 905. Va.-Terry v. Fontaine, 83 Va. 451, 2 S. E. 743. 82. Clewis v. Malon, 119 Ala. 312, 24 So. 767; Teague v. Lindsey, 106 Ala. 266, 17 So. 538. 83. Fisher v. Moog, 39 Fed. 665; Burt v. Timmons, 29 W. Va. 441. of a conspiracy by or collusion between the parties thereto to defraud creditors, since relatives may be presumed to be on terms of intimacy, and to have a natural and strong motive to protect each other at the expense of creditors, and more likely than other persons to lend aid to each other in case of pecuniary difficulty; and where a transaction between relatives is shown to have been attended by suspicious circumstances such as are pointed out in the preceding section as tending to show fraud, the evidence is sufficient to establish the invalidity of the transfer or conveyance as fraudulent as to creditors. The same rule is generally applied to transactions between husband and wife,85 and transactions be 84. N. Y.-Evans v. Sims, 82 Hun, 396, 31 N. Y. Supp. 259; Fox. v. Bronson, 35 Misc. Rep. 431, 71 N. Y. Supp. 980; Nichthauser v. Lehman, 17 Misc. Rep. 336, 39 N. Y. Supp. 1091. U. S.-McRea v. Branch Bank, 60 U. S. 376, 15 L. Ed. 688; Venable v. Bank of U. S., 27 U. S. 107, 7 L. Ed. 364. Ark.-Smith v. Goodrich (1905), 87 S. W. 125; Bryan-Brown Shoe Co. v. Block, 52 Ark. 458, 12 S. W. 1073. Colo.-Walton v. First Nat. Bank, 13 Colo. 265, 22 Pac. 440, 16 Am. St. Rep. 200, 5 L. R. A. 765; La Fitte v. Rups, 13 Colo. 207, 22 Pac. 309. Iowa.-Smith v. Bigelow (1904), 99 N. W. 590; Corn Exch. Bank v. Applegate, 91 Iowa, 411, 59 N. W. 268; Maish v. Crangle, 80 Iowa, 650, 14 N. W. 578; King v. Arnold, 52 Iowa, 712, 2 N. W. 955. Mich.-Desbecker v. Mendelson, 117 Iowa, 293, 75 N. W. 621; People v. Rice, 79 Mich. 354, 44 N. W. 790; Webber v. Jackson, 79 Mich. 175, 44 N. W. 591, 19 Am. St. Rep. 165. Minn. Kells v. McClure, 69 Minn. 60, 71 N. W. 827. Mo.-Baum v. Sauer, 117 Mo. 460, 23 S. W. 147; Lohmann v. Stocke, 94 Mo. 672, 8 S. W. 9. Wash.-Adams V. Dempsey, 35 Wash. 80, 76 Pac. 538; Keith v. Kreidel, 4 Wash. 544, 30 Pac. 638, 31 Pac. 333. W. Va.-Ballard v. Chewning, 49 W. Va. 508, 39 S. E. 170; Parker v. Valentine, 27 W. Va. 677. Wyo. Stirling v. Wagner, 4 Wyo. 5, 31 Pac. 1032, 32 Pac. 1128. 85. Evidence sufficient to show fraud.-N. Y.-Multz v. Price, 91 App. Div. 116, 86 N. Y. Supp. 480; Nichthauser v. Lehman, 17 Misc. Rep. 336, 39 N. Y. Supp. 1091. Ala.-Noble v. Gilliam, 136 Ala. 618, 33 So. 861; Wimberly v. Montgomery Fertilizer Co., 132 Ala. 107, 31 So. 524. 86 tween parent and child, whereby property is conveyed or transferred, and to conveyances by husband to wife through third Ark.-Smith v. Goodrich (1905), 87 S. W. 125; Slayden-Kirksey Woolen Mills v. Anderson, 66 Ark. 419, 50 S. W. 994. Colo.-Kelly v. Atkins, 14 Colo. App. 208, 59 Pac. 841. Ga.-Gregory v. Gray, 88 Ga. 172, 14 S. E. 187. Ill.-Torrey v. Dickinson, 213 Ill. 36, 72 N. E. 703, rev'g 111 Ill. App. 524; Hauk v. Van Ingen, 97 Ill. App. 642, aff'd 196 Ill. 20, 63 N. E. 705. Iowa.-Gaar v. Stolte, 115 Iowa, 139, 88 N. W. 334; Thomas v. McDonald, 102 Iowa, 564, 71 N. W. 572; Wasson v. Millsap, 77 Iowa, 762, 42 N. W. 528. Kan.-Dresher v. Corson, 23 Kan. Mich. 465, 85 N. W. 1085. Mo. Ettlinger v. Kahn, 134 Mo. 492, 36 S. W. 37. Neb. Kearney County Bank V. Dullenty (1901), 96 N. W. 169. N. C.-Stephenson v. Felton, 106 N. C. 114, 11 S. E. 255. Okla.-Jenks v. McGowan, 9 Okla. 306, 60 Pac. 239. Or.-Walker v. Harold, 44 Or. 205, 74 Pac. 705. S. C.-Mitchell v. Mitchell, 42 S. C. 475, 20 S. E. 405. S. D.-Smith v. Tosini, 1 S. D. 632, 48 N. W. 299. Tenn.-Shapira v. Paletz (Ch. App. 1900), 59 S. W. 774. Tex.-Rives v. Stephens (Civ. App. 1894), 28 S. W. 707. Va.-Crowder v. Garber, 97 Va. 565, 34 S. E. 470. Wash.-Bates v. Drake, 28 Wash. 447, 68 Pac. 961. W. Va.-Brooks v. Applegatt, 37 W. Va. 373, 16 S. E. 585; Martin v. Warner, 34 W. Va. 182, 12 S. E. 477. Evidence not sufficient to show fraud.-N. Y.-Kalish v. Higgins, 175 N. Y. 495, 67 N. E. 1084, aff'g 70 App. Div. 192, 75 N. Y. Supp. 397; Wilbur v. Fradenburgh, 52 Barb. 474; Glaser v. Carroll, 20 N. Y. Supp. 766. Ala.-Elyton Land Co. v. Yance, 119 Ala. 315, 24 So. 719. Colo.-Vote v. Karrick, 13 Colo. App. 388, 58 Pac. 333. Ga.-Sackett v. Stone, 115 Ga. 466, 41 S. E. 564. Ill.-Tyberandt v. Raucke, 96 Ill. 71; Cooke v. Peter, 93 Ill. App. 1. Iowa.-Pieter v. Bales, 126 Iowa, 170, 101 N. W. 865; Belden V. Younger, 76 Iowa, 567, 41 N. W. 317. Ky.-Berry v. Ewen, 27 Ky. L. Rep. 467, 85 S. W. 227. Mich.-First Nat. Bank v. Condon, 122 Mich. 457, 81 N. W. 341. Minn.-Bodkin v. Kerr, 97 Minn. 301, 107 N. W. 137. Miss.-Virden v. Dwyer, 78 Miss. 763, 30 So. 45. Mo.-Citizens' Bank v. Burrus, 178 Mo. 716, 77 S. W. 748. Neb.-Kimbro v. Clark, 17 Neb. 403, 22 N. W. 788. Or.-Wright v. Craig, 40 Or. 191, 66 Pac. 807. 87 persons. A preponderance of evidence is all that is necessary to Pa.-Moore v. Moore, 165 Pa. St. 464, 30 Atl. 932. 8. C.-De Loach v. Sarratt, 55 S. C. 254, 33 S. E. 2, 35 S. E. 441. Tex.-O'Neal v. Clymer (Civ. App. 1900), 61 S. W. 545. Va.-Kinnier v. Woodson, 94 Va. 711, 27 S. E. 457. Wash.-Budlong v. Budlong, 32 Wash. 672, 73 Pac. 783. W. Va.-Enslow v. Sliger, 51 W. Va. 405, 41 S. E. 173. Can.-Snowball v. Neilson, 16 Can. Sup. Ct. 719. Conducting business in wife's name held to be in fraud of creditors. Farmers' Bank v. Marshall, 18 Ky. L. Rep. 249, 35 S. W. 912; Wedgewood v. Withers, 35 Neb. 583, 53 N. W. 576. But see Kluender v. Lynch, 2 Abb. Dec. (N. Y.) 538, 4 Keyes, 361. 86. Evidence sufficient to show fraud.-N. Y.-Merchants' Nat. Bank v. Chapin, 61 Hun, 620, 15 N. Y. Supp. 427; Nichols v. Morrow, 58 Hun, 606, 11 N. Y. Supp. 878; McDonald v. McDonald, 57 Hun, 594, 11 N. Y. Supp. 248. U. S.-Walker v. Houghteling, 120 Fed. 928, 57 C. C. A. 218. Ala.-Martin v. Berry, 116 Ala. 233, 22 So. 493. Iowa.-Hunt V. Johnston, 105 Iowa, 311, 75 N. W. 103. Ky.-Zimmerman v. McMasters, 25 Ky. L. Rep. 456, 76 S. W. 5. La.-Pruyn v. Young, 51 La. Ann. 320, 25 So. 125. Me.-Rollins v. Mooers, 25 Me. 192. Mass.-Smith v. Whitman, 88 Mass. 562. Mich.-Kastl v. Arthur, 135 Mich. 278, 97 N. W. 711. Mo.-Spratt v. Early, 169 Mo. 357, 69 S. W. 13; Van Raalte v. Harrington, 101 Mo. 602, 20 Am. St. Rep. 626, 14 S. W. 710, 11 L. R. A. 424. Neb.-Steinkraus v. Korth, 44 Neb. 777, 62 N. W. 1110. N. J.-Perrine V. Perrine (Ch. 1901), 50 Atl. 694; Gardner V. Klienke, 46 N. J. Eq. 90, 18 Atl. 457. N. D.-Soly v. Aasen, 10 N. D. 108, 86 N. W. 108. Or.-Mendenhall v. Elwert, 36 Or. 375, 52 Pac. 22, 59 Pac. 805. Pa. Fidelity Ins., etc., Co. v. Madden, 14 Montg. Co. Rep. 210. S. C.-Fulmore v. Burrows, 2 Rich. Eq. 95. Va.-Hazlewood v. Forrer, 94 Va. 703, 27 S. E. 507. Wash.-Keith v. Kreidel, 4 Wash. 544, 30 Pac. 638, 31 Pac. 333. W. Va.-Knight v. Nease, 53 W. Va. 50, 44 S. E. 414. Can.-Douglass v. Ward, 11 Grant Ch. (U. C.) 39. Evidence not sufficient to show fraud.-N. Y.-Kain v. Larkin, 131 N. Y. 300, 30 N. E. 105, rev'g 17 N. Y. Supp. 223; Parks v. Murray, 2 St. Rep. 628. U. S.-Allen v. Smith, 129 U. S. 465, 9 Sup. Ct. 338, 32 L. Ed. 732; Blackmort v. Parks, 81 Fed. 899, 26 C. C. A. 670. Ala.-Morrow V. Campbell, 118 Ala. 330, 24 So. 852. Colo.-Otis v. Rose, 9 Colo. App. 449, 48 Pac. 967. Conn.-Hallock v. Alvord, 61 Conn. 194, 23 Atl. 131. Ga.-Griffis v. Griffis, 89 Ga. 142, 15 S. E. 23. Iowa.-Walker v. Kynett, 36 Iowa, 694. establish the validity, as against creditors, of a conveyance from husband to wife.88 In the notes below are cited cases in which the indebtedness of the husband to his wife has been held to have been established by the evidence, and others in which it has been held not established, and cases where the wife's ownership of property sought to be subjected to the husband's debts has been held to have 90 Ky.-McMillan v. Stephens, 20 Ky. L. Rep. 1528, 49 S. W. 778. Md.-Zahn v. Smith (1889), 18 Atl. 865. Mich.-Woodhull V. Whittle, 63 Mich. 575, 30 N. W. 368. Mo.-Glietz v. Schuster, 168 Mo. 298, 67 S. W. 561, 90 Am. St. Rep. 461. Mont.-Wilson v. Harris, 19 Mont. 69, 47 Pac. 1101, 21 Mont. 374, 54 Pac. 46. Neb.-Houck v. Heinzman, 37 Neb. 463, 55 N. W. 1062. N. C.-Southern Flour Co. v. McIver, 109 N. C. 120, 13 S. E. 905. Ohio.-First Nat. Bank v. Rice, 22 Ohio Cir. Ct. 183, 12 Ohio Cir. Dec. 121. Va.-Bresee v. Bradfield, 99 Va. 331, 38 S. E. 196. W. Va.-Piedmont Bank v. Bowman, 39 W. Va. 622, 20 S. E. 593. 87. Conveyance held fraudulent.-N. Y.-Cole v. Tyler, 65 N. Y. 73; Simmons v. Johnson, 48 Hun, 131; Emmerich v. Hefferan, 58 N. Y. Super. Ct. 217, 9 N. Y. Supp. 801. Ala.-Yeend v. Weeks, 104 Ala. 331, 16 So. 165, 53 Am. St. Rep. 50. Ill.-Frank v. King, 121 Ill. 250, 12 N. E. 720. Iowa.-Shaffer v. Mink, 60 Iowa, 754, 14 N. W. 126. Mo.-Hoffman v. Nolte, 127 Mo. 120, 29 S. W. 1006. W. Va.-Hutchinson v. Boltz, 35 W. Va. 754, 14 S. E. 267. Conveyance held valid.-N. Y. -Carter v. Meisch, 18 N. Y. Supp. 804. Mo.-National Brewery Co. V. Linsday, 72 Mo. App. 591. Neb.-Blair State Bank v. Bunn, 61 Neb. 464, 85 N. W. 527. S. C.-De Loach v. Sarratt (1899), 33 S. E. 365. 88. Stevens v. Carson, 30 Neb. 544, 46 N. W. 655; Lipscomb v. Lyon, 19 Neb. 511, 27 N. W. 731; Evans v. Rugee, 57 Wis. 623, 16 N. Y. 49. See, however, California Bank v. Cowan, 75 Fed. 145, 21 C. C. A. 279. 89. Ellis v. Myers, 4 Silv. Sup. (N. Y.) 323, 8 N. Y. Supp. 139; MeCormick Harvesting Mach. Co. V. Griffin, 116 Iowa, 397, 90 N. W. 84; Lehman v. Coulon, 105 La. 431, 29 So. 879. 90. U. S.-California Bank V. Cowan, 75 Fed. 145, 21 C. C. A. 279. Ala.-Shepherd v. Reeves, 114 Ala. 281, 21 So. 956. Ark.-Waters v. Merrit Pants Co. (1905), 88 S. W. 879. Iowa.-Woods v. Allen, 109 Iowa, 484, 80 N. W. 540. Tenn.-Byler v. Adams (Ch. App. 1901), 62 S. W. 21. Va.-Kline v. Kline, 103 Va. 263, 48 S. E. 882. 91. A. T. Albro & Co. v. Fountain, 162 N. Y. 498, 57 N. E. 72, rev'g 15 App. Div. 351, 44 N. Y. Supp. 150; |