Second National Bank v. Yeatman

Robinson, J., delivered the opinion of the Court. The complainant, a judgment creditor of William H. Yeatman, alleges that the said Yeatman purchased a ⁴⁴⁴ tract of land in Baltimore County, and caused the same to be conveyed to Vincent M. Webb, his brother-in-law, with intent to hinder, delay and defraud his creditors; that the property is now held by Webb in secret trust for Yeatman, and prays that Webb may be declared trustee of Yeatman, in respect to the said tract of land, and for other and further relief. The undisputed facts show, that in 1876 William H. Yeatman purchased of Edward Otis Hinldey, trustee, a lot of ground on Strieker street, upon which were built twelve small houses, the title to which was conveyed to Robert H. Yeatman, his brother. That this lot, with the improvements, was exchanged with the Baltimore City Loan and Trust Company, for property on the corner of Monroe and McHenry streets, the title to which was conveyed to Vincent M. Webb ; and that this latter property was exchanged with Edgar W. Rowe for a farm in Baltimore County, which is now in the possession of William H. Yeatman’s son, and which is the subject-matter in controversy in this suit.

The theory upon which the complainant’s claim to relief is based, is that William H. Yeatman was the owner of the Strieker and McHenry street properties, and is now the real owner of the farm in Baltimore County, and that the several conveyances were made to Robert H. Yeatman and Webb, for the purpose of concealing the real ownership of these properties, and thereby deceiving and defrauding his creditors. And the question is, whether this theory is satisfactorily established by the proof? Henry C. Norris, of the firm of Norris & Son, conveyancers, testifies, that in the early part of the summer of 1876, William H. Yeatman requested him to draw alease of the Strieker street property, and to make out the papers in the name of his brother, Robert H. Yeatman, saying at the time he was embarrassed, and could not hold property in his own name. ⁴⁴⁵ Jonathan Norris, the other member of the firm, testifies, that William H. Teatman bought the lot on Strieker street from Edward Otis Hinkley, trustee; and that it was conveyed by his request to Robert H. Yeatman, his brother, for the reason assigned by him, that being embarrassed, he could not hold property in his own name. That in May, 1876, William H. Yeatman brought to witness a note drawn by one Redinger, and said they expected to get money in a few days from the sale of ground rents on the Strieker street property.

Witness got the note discounted, and not being paid at maturity, he called on Robert H. Teatman about the note, and after some consideration, he said “ when William sells his houses, or when we sell,” witness does not recollect distinctly which, “ the note should be paid.” That subsequently, William H. Teatman spoke of the Strieker street property as belonging to him, and said it stood in his brother’s name, to prevent its being sold for his debts. S. S. Pleasants testifies, that in the early part of 1878, William H. Yeatman requested him to procure a loan on the Strieker street property, stating the amount he wanted, the per cent, he was willing to pay, and the incumbrances upon the property; that about two months afterwards, witness was requested by the secretary of the Baltimore City Loan and Trust Company to examine the title of the Strieker street lot, and to make out the papers for d transfer of the same for the McHenry street property,.belonging to the Company, and that he was surprised upon examination to find that “ it stood in the name of Robért H. Teatman.” William subsequently assured witness that he was acting as agent for his brother. Robert, and relying upon these assurances, the exchange was made. The title to the property, however, was conveyed to Vincent M. Webb, and not to Robert H. Yeatman.

It further appears, that ⁴⁴⁶ all the negotiations in regard to the exchange of these properties were conducted hy William H. Yeatman, and he never intimated that the Strieker street lot stood in the name of his brother, until it was discovered in the examination of the title. Having made this exchange, he next offers the