ELLIOTT W. HUDGINS AND JOHN L. HUDGINS, APPELLANTS,
v.
WYNDHAM KEMP, ASSIGNEE IN BANKRUPTCY OF JOHN L. HUDGINS
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The bankruptcy assignee of John L. Hudgins sought to set aside two deeds of conveyance to Elliott W. Hudgins as fraudulent transfers made to hinder creditors. The Circuit Court found one deed from 1842 fraudulent and void but upheld the 1839 deed as valid, ordering the assignee to take possession of the fraudulently conveyed property and collect rents and profits. The Supreme Court affirmed the lower court's decree, finding no reversible error in the determination that one deed constituted a fraudulent conveyance while the other remained valid.
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Mr. Justice NELSON delivered the opinion of the court.
This is an appeal from a decree of the Circuit Court of the United States for the eastern district of Virginia.
The bill was filed by the assignee of the bankrupt, J. L. Hudgins, as in the preceding case, against E. W. Hudgins, a son, to set aside two deeds of conveyance of lands, as executed and delivered by the bankrupt to hinder and delay creditors— one dated 6th September, 1839, conveying three hundred acres lying in the county of York; the other dated 1st March, 1842, conveying, by estimation, seven hundred acres, in the same county — the latter for the consideration of $3,000. This deed was made a few days after the one set aside in the case of the assignee against Robert Hudgins. The case depends upon substantially the same evidence. Portions of it, tending to connect this defendant with the conduct of the grantor, in conveying away his property .in fraud of his creditors, as respects the deed of, the 1st March, 1842, are, .if possible, somewhat stronger than that in the preceding case..
The court, on the 18th May, 1843, decreed that the deed was fraudulent and void, and that, the assignee in bankruptcy take possession of the property aé*a receiver; and, further, that the deed of the 6th September, 1839, was not made in fraud of creditors, but was valid as ^against the complainant. The court also directed an account of the rents and profits, from the time'of the petition in bankruptcy.to the time of the receiver taking-possession. The master subsequently reported rents and profits to the amount of $659.72; and on the 27th June, 1855, a final decree was entered.
The court decreed that the defendant, Elliott W. Hudgins, pay to the complainant $659.72, with interest from 2d June, 1848; and that, if the proceeds of the property directed to be sold in. the case of the plaintiff against Robert Hudgins and others, should not be sufficient to satisfy the debts proved against the bankrupt, then the plaintiff is authorized to sell the lands in question, as particularly specified and directed in the said decrece. The onlyquestion arising on the master’s report in this casé, and the decree, in pursuance thereof, is, that the rents and profits should not have been charged prior to the decree in bankruptcy. The answer to this objection is, that no such exception was taken to the report, and cannot, therefore, be noticed here. The ease, in all its essential parts, falls within the views presented in the preceding one of this plaintiff against Robert Hudgins and others, and must abide the like result.
The decree of the court below is affirmed.