US SUPREME COURT DECISIONS

The statute of Frauds in the State of Alabama declares void conveyances made for the purpose of hindering or defrauding creditors of their just debts. chanrobles.com-red

Page 54 U. S. 93

Where a person made a settlement upon his wife and children, owing at that time a large sum of money, for which he was soon afterwards sued, and became insolvent, these circumstances, with other similar ones, are sufficient to set aside the deed as being fraudulent within the statute.

This was a bill filed by the appellants, as creditors, to set aside a deed of settlement made by George Goffe upon his wife and daughter under circumstances which are detailed in the opinion of the court.

The district court sustained the deed upon the following ground.

"The true practical rule, which I think is fully authorized by the case of Hinds' Lessee v. Longworth, is laid down by the supreme court of New York in the case of Jackson v. Town. That rule is that"

"Neither a creditor nor a purchaser can impeach a conveyance bona fide made, founded on natural love and affection, free from the imputation of fraud, and when the grantor had, independent of the property granted, an ample fund to satisfy his creditors."

"Testing the case under consideration by this rule, we must look to the evidence to ascertain the amount and value of the property owned by George Goffe, as well as by the firm of G. & J. M. Goffe, at the period of the sale to Williams, and the conveyance of his notes for the benefit of Mrs. Goffe and her daughters, independent of the Blount Springs tract, and also to determine whether these deeds are made bona fide and free from the imputation of fraud."

The district court considered that the facts of the case brought it within the operation of this rule, and therefore upheld the deed.

The complainants appealed to this Court. chanrobles.com-red

Page 54 U. S. 97