Gaylords v. Kelshaw - 68 U.S. 81 (1863)
U.S. Supreme Court
Gaylords v. Kelshaw, 68 U.S. 1 Wall. 81 81 (1863)
Gaylords v. Kelshaw
68 U.S. (1 Wall.) 81
1. In a bill to set aside a conveyance as made without consideration and in fraud of creditors, the alleged fraudulent grantor is a necessary defendant in the bill, and if being made defendant, his citizenship is not set forth on the record, the bill must be remanded or dismissed.
2. In such cases of remandment or dismissal, costs are allowed to a co-defendant, being the person charged with having received the fraudulent conveyance.
The Gaylords, appellants here, had filed their bill in chancery in the Circuit Court for the District of Indiana, against the defendants Kelshaw and Butterworth, charging that they had an unsatisfied judgment at law in one of the Indiana courts against Kelshaw, and that some short time before the judgment was recovered, Kelshaw conveyed to Butterworth a valuable piece of real estate without any consideration, and with an intent fraudulently to hinder and delay them, the said Gaylords, in the collection of their debt. The bill prayed that the conveyance might be aside, and the property sold in satisfaction of their debt.
The complainants alleged themselves to be citizens of Ohio, and Butterworth to be a citizen of Indiana, but no allegation was made in any part of the record as to the citizenship of Kelshaw. The record showed, however, that he was found within the district, and had appeared and answered. The court below dismissed the bill on merits.