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Smart Summary

Factual and Procedural Background

The plaintiff, Edwin R. Brink, claimed title to a kiln of brick conveyed to him by mortgage from Stacy Van Amringe in November 1873. The defendant, Archibald R. Black, acting as sheriff of New Hanover County, alleged that the mortgage was fraudulent and void as against creditors and sold the brick to satisfy executions against Van Amringe. Brink brought this action seeking damages for the sale. The case was removed from New Hanover County and tried at the Spring Term of 1877 in Brunswick County before Judge Seymour. The jury returned a verdict for the plaintiff, and the defendant appealed.

Legal Issues Presented

  1. Whether evidence of a prior fraudulent mortgage deed executed between the same parties in 1872 is admissible to prove the fraudulence of the 1873 mortgage deed.
  2. Whether the trial court erred in refusing a requested jury instruction that the defendant claimed was essential to establishing fraudulent intent.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gilmer v. Hanks, 84 N.C. 319 General principles concerning fraudulent conveyances and creditor protection. Cited as part of the legal framework regarding fraudulent intent in conveyances.
Kinney v. Laughanour, 89 N.C. 368 Standards for evaluating fraud in mortgage transactions. Referenced to support the court's analysis of fraudulent intent.
Patterson v. McIver, 90 N.C. 497 Evidence admissibility in fraud cases. Used to justify admitting evidence of prior fraudulent dealings.
S. v. Hargrave, 103 N.C. 335 Legal standards for fraud and conveyance validity. Supported the court's reasoning on fraudulent intent.
Edwards v. Phifer, 121 N.C. 391 Interpretation of creditor rights and fraudulent conveyances. Reinforced principles applied to the mortgage's validity.
Norton v. R. R., 122 N.C. 934 Application of fraud doctrine in property conveyances. Provided precedent for evaluating intent behind conveyances.
Coble v. Huffines, 133 N.C. 426 Evidence of fraudulent intent in mortgage cases. Supported the admissibility of prior dealings as evidence.
Baker v. R. R., 144 N.C. 41 Judicial instructions and the necessity of accurate jury guidance. Guided the court's determination of error in jury instruction refusal.
Robertson v. Halton, 156 N.C. 219 Standards for determining fraud in conveyances. Referenced in assessing the sufficiency of evidence.
Eddleman v. Lentz, 158 N.C. 74 Principles of creditor protection and fraudulent transfers. Supported the court's interpretation of fraudulent intent.
Ins. Co. v. Knight, 160 N.C. 594 Legal standards for fraud and conveyance validity. Reinforced analysis of the mortgage's fraudulent nature.
Marcom v. R. R., 165 N.C. 260 Jury instructions and their proper formulation. Informed the court's ruling on the erroneous refusal of instruction.
Smith v. Tel. Co., 167 N.C. 256 Evidence standards in fraud cases. Supported admission of prior fraudulent dealings as evidence.
Lloyd v. Bowen, 170 N.C. 220 Application of fraudulent conveyance doctrine. Used to uphold the principles applied in this case.

Court's Reasoning and Analysis

The court focused on the defendant's requested fifth jury instruction, which asserted that Van Amringe's continued possession and treatment of the 1872 mortgaged property as his own was strong evidence of fraudulent intent regarding the 1873 mortgage. The trial judge refused this instruction and instead gave a different charge that limited the use of the 1872 mortgage evidence to showing prior dealings rather than as evidence of fraud. The Supreme Court held that while a judge may rephrase a requested instruction, it is error to alter its meaning or weaken its force. The court found the substitute instruction given was not an adequate replacement and that the defendant was entitled to the instruction as prayed for. The court explained that a conveyance intended to enable a debtor to keep creditors at bay by allowing the debtor to enjoy and dispose of property as if debt-free is fraudulent. The evidence showed Van Amringe was indebted to many creditors and treated the 1872 mortgage property as his own, disposing of it without proper accounting, thus strongly supporting fraudulent intent for the 1873 mortgage. Consequently, the court concluded the refusal of the requested instruction was error and warranted a new trial.

Holding and Implications

The Supreme Court of North Carolina reversed the judgment and ordered a venire de novo (new trial).

The decision directly affects the parties by requiring a new trial due to the erroneous refusal of a critical jury instruction concerning evidence of fraudulent intent. The court did not establish new precedent but reaffirmed established principles regarding the admissibility of evidence of prior fraudulent dealings and the proper formulation of jury instructions in fraud cases.

EDWIN R. BRINK v. ARCHIBALD R. BLACK.

Evidence — Fradulent Conveyance — Judge's Charge.

1. Upon an issue as to the fraudulency of a mortgage deed executed in 1873, it is admissible to show that in the previous year a fraudulent instrument of like character was executed between the same parties. Such proof is not only some evidence, but very strong evidence, that the mortgage deed of 1873 is likewise fraudulent.

2. Where a party prays for an instruction to which he is entitled, it is error to refuse it. The court, however, is not required to adopt the words of the instruction prayed for; but it is error to change its sense or to so qualify it as to weaken its force.

The plaintiff claimed title to a certain kiln of brick conveyed to him by mortgage from one Stacy Van Amringe in November, 1873. The defendant, as sheriff of New Hanover County, alleging that said mortgage was fradulent and void as against creditors, sold said brick to satisfy executions in his hands against Van Amringe. Thereupon the plaintiff brought this action to recover damages.

There was much evidence tending to show that Van Amringe (60) was indebted to the plaintiff and many other persons; that plaintiff had taken a mortgage on a kiln of brick in July, 1872; that Van Amringe had acted as his agent in the sale of the brick, and had remained in posession [possession] of the mortgaged property after the execution of the mortgage deed; that only a part of the proceeds of said sale was applied to the mortgage debt, and no account of the sales had been rendered to plaintiff.

The point decided in this Court is involved in the following:

Instructions prayed for: "5th. That the fact that Van Amringe was permitted to remain in posession [possession] of the property conveyed by the mortgage of July, 1872, being of the same character, and dealing with it and treating it as his own, was some evidence of the fradulent intent on the part of Van Amringe in the mortgage of November, 1873."

His Honor refused to charge as requested, but told the jury:

Instructions given: "That the mortgage of 1872 was admitted for the purpose of showing there had been previous dealings, and the nature of those dealings, between the parties, but not otherwise as evidence of fraud in the mortgage of November, 1873; that it was much more likely that a fraud would be committed by parties who had considerable dealings than where there was only one transaction. " Defendant excepted.

There was a verdict for plaintiff. Judgment. Appeal by defendant.

(61) PEARSON, C. J.

When a party pays for an instruction to which he is entitled, it is error to refuse it. The judge is not required to adopt the words of the instruction; he may, as a matter of taste, change the phraseology, but it is error to change its sense, or so to qualify it as to weaken its force. C. C. P., secs. 238, 239, 301.

We put our decision on the fifth instruction prayed for, and the response thereto, as that entitles the defendant to a new trial. Evidently the instruction given is not a legitimate substitute for the instruction prayed for.

So the only question before us is, Was the defendant entitled to the instruction?

If a conveyance is made with an intent to enable the debtor to hold his other creditors "at arm's length," and to enjoy and dispose of his property just as if he did not owe one cent, the conveyance is fraudulent, although the gratee had a true debt, for the reason that there is an intent to "hinder and delay creditors."

Van Amringe was indebted to many persons $6,000 or $7,000. The mortgage of 1872 had the effect of keeping all of them off, for fear of a lawsuit, and he disposed of the kiln of brick and other articles to the value of, say, $3,500, for his own use, without intereference [interference] on the part of the plaintiff; and in 1873 he owed the plaintiff, by reason of "accommodation acceptances," a larger amount than he owed in 1872. These facts and circumstances, in connection with the kiln of brick in 1872, constituted not only "some evidence," but very strong evidence, of an intention that the kiln of 1873 was to go in the same way as the kiln of 1872; that is, for the enjoyment of Van Amringe in spite of his creditors, the plaintiff standing by with his arms folded and being confident that he was secured in regard to all of his accommodation acceptances.

PER CURIAM. Venire de novo.

Cited: Gilmer v. Hanks, 84 N.C. 319; Kinney v. Laughanour, 89 N.C. 368; Patterson v. McIver, 90 N.C. 497; S. v. Hargrave, 103 N.C. 335; Edwards v. Phifer, 121 N.C. 391; Norton v. R. R., 122 N.C. 934; Coble v. Huffines, 133 N.C. 426; Baker v. R. R., 144 N.C. 41; Robertson v. Halton, 156 N.C. 219; Eddleman v. Lentz, 158 N.C. 74; Ins. Co. v. Knight, 160 N.C. 594; Marcom v. R. R., 165 N.C. 260; Smith v. Tel. Co., 167 N.C. 256; Lloyd v. Bowen, 170 N.C. 220.

(62)

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BRINK v. BLACK
(Jun 1, 1877)