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Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 3, Page 138   View pdf image (33K)
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138 HIGH COURT OF CHANCERY.
JOHN A. THOMPSON, TRUSTEE IN INSOL-
VENCY OF GEORGE S. DAVIS,
vs.
DANIEL B. BANKS.
DECEMBER TERM, 1849.
[ABSOLUTE DEED DECLARED A MORTGAGE—FRAUD.]
UPON proper averments and sufficient evidence, a Court of Equity will treat
an absolute deed as a mortgage, and decree a redemption by the mortgagor,
or a sale for the purpose of paying the sum due.
Where a bill alleges that a deed, absolute on its face, was intended to be a
mortgage, and was procured with the fraudulent design of setting it up as
an absolute deed, contrary to the express agreement and understanding
of the parties at the time of its execution, and the answer denies the
fraud, the complainant must prove it by evidence, direct or circumstantial.
It is well established that fraud maybe inferred from facts and circum-
stances; from the character of the contract, or from the condition and
circumstances of the parties.

George S. Davis executed a deed, dated the 25th of Sept.,
18AO, by which he conveyed, for the consideration of $500, cer-
tain leasehold estate to Daniel B. Banks absolutely. Said
Davis afterwards, on the 6th of October, 1846, applied for the
benefit of the insolvent laws, and John A. Thompson was ap-
pointed his permanent trustee, who, on the 3d of November,
1849, filed the bill in this case, attacking said deed upon the
grounds stated in the following opinion of the Chancellor.]
THE CHANCELLOR:
This case was argued before me during the sittings of., the
term by the solicitor of the complainant, and is now submitted
under the rule.
The bill which is filed by the complainant as the insolvent
trustee of George S. Davis, alleges that a deed executed by
said Davis, on the 25th of Sept., 1840, and by which the
grantor conveyed to the defendant, Banks, certain leasehold
estate in the city of Baltimore, absolutely for the sum of five
hundred dollars, wag intended as a mortgage merely, to secure

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Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 3, Page 138   View pdf image (33K)
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