Russell v. Thatcher

Decided February 15, 1864

Court of Chancery of Delaware · decided 1864-02-15

Creditor’s bill to set aside a voluntary conveyance. —The defendant, Thomas Thatcher, by a deed dated December 26th, 1857, conveyed a house and lot, situated in Wilmington, to Edward Mclnall, upon… Held: to be invested for her use; and that the house and lot was purchased with this fund. The answer also alleged that at the time of the conveyance Thatcher was not insolvent.

Cited by 4 later decisions — most recently November 1978

3 state decisions

Key passage — most relied on by later courts

““It is true, that part of the money invested in the property conveyed by the deed in trust, (or its equivalent) was received by Thatcher from his wife’s property; but it was received and originally invested by him as his own, and in his own name; and he could not subject it to a voluntary trust after he had incurred debts, and that possibly on the credit of this property.””

quoted by 1 later decision, including Hull v. Hudson

Good law ✅— No negative treatment on recordhow we know

Decided 1864-02-15

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Harrington, Chancellor.

¶1Upon consideration of this case, I am prepared to make a decree, charging the trust fund with so much of the debts of the complainants as were contracted prior to the date of the trust deed. It is.true, that part of the money invested in the property conveyed by the deed in trust, (or its equivalent) was received by ■ Thatcher from his wife’s property; but it was received and originally invested by him as his own, and in his own name; and he could not subject it to a voluntary trust after he had incurred debts, and that possibly on the credit of this property.

¶2A decree was entered charging the property with so much of the debt due the complainant, Russell, as was incurred prior to the date of the trust deed; also, with the debt due the complainants, Craige and Tatnalls and ordering a sale of the property to raise these sums, if not paid within thirty days.