John Catron

“ No case is before us fairly to raise such a question, or to justify speculations affecting injuriously a title valid at law, and prima facie good in equity; when those most interested in it are not before the Court.
There is another reason why the appellants cannot challenge the validity of the title made by Smith to James L. White; it is this: they made the composition with a full and perfect knowledge of the facts attending the conveyance, and subsequent improvements of the property; then they continued silent, and took the full benefit of their contract, and cannot now be heard to speak. ”

“ To press further the principle, that a complainant must come into a court of equity, when he asks its aid, with a clear conscience; would be assuming an unlimited and undefined discretion to dismiss the bill, not for want of equity in the allegations and corresponding proof, but because of the bad conduct in life and character of the complainant.
The true rule is: 'If the person against whom fraud is alleged, should be proved to have been guilty of it in any number of instances ”

“ It is assumed: 'But whatever the terms, or the nature of the composition, and however fit it may be, in its own nature, for specific performance in equity, the whole of the complainant's equity is repelled by a countervailing equity in defendants; from his promise as one of their concomitant inducements to the composition to pay the full amount of the debt, when able to do so; and from the fact, both averred and proved, that he was able to pay the whole debt. Did the complainant, White, promise to pay the full amount of the debt when he was able to do so ”

“ The rule cutting of underhand agreements in cases of joint and general compositions, as a fraud upon the other compounding creditors, and because such agreements are subversive of sound morals and public policy, has no application to a case like the persent; where each creditor acts not only for himself, but in opposition to every other creditor, all equally relying upon their vigilance to gain a priority; which, if obtained, each being entitled to have satisfaction, the payment cannot be questioned. ”

“ On these desperate debts no business man could place any reliance; and they are, therefore, disregarded by the Court when estimating the available property of the appellee: and the same might, with something of safety, be assumed of the item consisting of household goods; the idea that the wealthy wholesale dealer will strip the family of his unfortunate retail customer, of their beds, furniture, and utensils, has no place in the mercantile transactions of this country. Retaining this item, however, and the complainant had twenty-five per cent. ”

“ Be this however, as it may, they having received their full proportion of the appellee's property, have no right to resist the prayer for relief, even had the composition been made in subservience to an unfair but extraneous influence, growing out of the transactions with the other creditors, who were separately seeking payment. In equity, as at law, fraud and injury must concur to furnish ground for judicial action; a mere fraudulent intent, unaccompanied by any injurious act, is not the subject of judicial cognizance. ”

“ If upon failure or insolvency, one creditor goes into a contract of general composition common to the others, at the same time having an underhand agreement with the debtor to receive a larger per cent, such agreement is fraudulent and void ”

“ If those who receive partial payments are willing to give releases, it is their own matter; and, should a third person interfere, debtor and creditor could well say to him, you are a stranger, and must stand aside. ”

“ It is insisted that these large purchases were made with a prospective view to a failure, and compositions at thirty and fifty per cent. discount; the complainant at the same time being perfectly solvent in fact. That purchasing largely was an elaborated scheme, with a view to future and feigned insolvency, designed, on the part of White, to overreach his creditors, it is difficult to believe. ”

“ But more than seventy per cent. was received by Clarke & Briscoe, because their notes were not then due. They pressed the debtor to the highest rate of composition he was able to pay, consistently with his duty to the other creditors; and, considering the nature of his means, and that he discharged this demand with the most available means, it was probable that equal justice could not be done to others. ”

“ In reference to this conveyance it may be remarked, that by the common law, it was valid without registration; and where register acts require deeds to be recorded, they are valid until the time prescribed by the statute has expired; and if recorded within the time, are as effectual from the date of execution, as if no register act existed. ”

“ On the 14th of January, 1832, John A. Smith, at the request of William G. W. White, conveyed the premises to James L. White, in trust for the three infant children of William G. W. White, in fee. Between the date of the purchase in 1829, and that of the conveyance in January, 1832, William G. W. White made improvements on the premises, to the value of about three thousand dollars; and added to them others, costing twelve or fifteen hundred dollars, after the date of the deed, and before his failure in December, 1833. The property, at this date, was worth about six thousand dollars. ”

“ Much stress has been laid upon this transaction, as somewhat of an independent ground of defence in the pleadings, and also in the arguments presented for the appellants; we therefore deem it a duty to bestow upon this particular question, a corresponding degree of attention. ”