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95 Mass. 182

Lynde v. McGregor

Massachusetts Supreme Judicial Court

Decided October 15, 1866

Massachusetts Supreme Judicial Court · decided 1866-10-15

<p>If the wife of an insolvent debtor, not knowing his pecuniary condition, mortgages land, which she holds as her separate property, as security for money advanced to him, and he thereafter, within six months before the commencement of proceedings in insolvency, knowing himself to be insolvent, with intent to defraud his creditors, and with the fraudulent participation of the mortgagee, expends money in improving and building upon the land, the assignee in insolvency may maintain a bill in equity against her, her husband and the mortgagee, to compel the payment to him of the amount of the increased value of the land, by reason of the husband’s expenditures thereon, over and above the sum for which it was mortgaged.</p> <p>Written answers made in the course of an examination of a witness under oath in the court of insolvency are admissible in evidence against him afterwards, though not signed by him, and though made with an understanding that he should have an opportunity of submitting them to his counsel for revision before signing and filing them.</p>

Cited by 3 later decisions — most recently January 1909

3 state decisions

Good law ✅— No negative treatment on recordhow we know

Decided 1866-10-15

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Gray, J.

¶1By the statutes of this commonwealth, the real estate of Mrs. Boardman remained, notwithstanding her marriage, her separate property, not subject to the interference and control of her husband, or liable for his debts; and might be conveyed away by her, either with his assent in writing, or without such assent with the approval of a judge of this court or of the superior court or the probate court. Gen. Sts. c. 108, §§ 1, 3. Hills v. Bearse, 9 Allen, 403. Staples v. Brown, ante, 64. These statutes are inconsistent with the hypothesis that the husband has any estate in his wife’s land, which he can convey separately during her lifetime, or which will pass to his assignees in insolvency. The provision of the tenth section of the same chapter, that nothing contained in the preceding sections shall destroy or impair the husband’s rights as tenant by the curtesy, or enable the wife to do so by will or conveyance without his written assent, secures to him only the enjoyment of the estate himself, and gives him no greater right during their joint lives to alienate his interest by a separate conveyance than a wife under the earlier law had over her right of dower in her husband’s lands. The mortgage executed by Boardman and his wife to McGregor cannot therefore be avoided by the plaintiffs as in fraud of his creditors.

¶2As to the amount of money afterwards expended by the husband upon the wife’s land, the evidence introduced by the parties at the hearing is not specific enough to enable the court to determine whether the plaintiffs are entitled to any relief by reason of such expenditure; but affords the means of laying down general rules to guide further inquiry. McGregor is found to have actually advanced to the husband the sum of two thousand dollars upon the mortgage of the wife’s land ; and is entitled, as against the wife, to hold his mortgage as security for the repayment of that sum. The wife had no knowledge of her husband’s pecuniary condition, and is not shown to have participated in any fraudulent act or intent.

¶3*185Under these circumstances, if no greater sum of money was expended by the husband after the execution of the mortgage upon the land than two thousand dollars, the sum which had been raised and charged upon the land; or if more than two thousand dollars was so expended by the husband, but the excess above that sum did not increase the value of the land above what it would have been without it; his creditors or assignees in insolvency have no equity against the wife, who has participated in no fraud against such creditors, and whose estate has received no benefit from the transactions of the husband. But if more than two thousand dollars has been expended upon the land since the making of the mortgage, and the excess over two thousand dollars has increased the value of the estate, then the amount of such increase in value, for which no consideration has been paid by the wife, and which has been added to her estate by the husband in fraud of his creditors, in equity belongs to them, and may be made a charge upon the land for their benefit.

¶4The answers made in writing under oath by McGregor were clearly admissible in evidence against him. The fact that they had not been revised by his counsel did not make them incompetent, whatever effect it may have upon their weight.

¶5The case must therefore be referred to a master to inquire and report what amount of money was fraudulently expended by the husband on the land after the making of the mortgage, and, if that amount exceeded two thousand dollars, how much the excess increased tne value of the land. All further directions are reserved until the coming in of the master’s report.

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