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(In Court of Session, 3 Macp. 758.)
Held (aff. C. of S. ) that a post-nuptial provision by a husband in favour of his wife and children, to take effect during the subsistence of the marriage, was ineffectual in a question with creditors under his sequestration.
This was an appeal from the Second Division of the Court of Session. An action of declarator and reduction had been raised by the respondent, aa trusteee on the sequestrated estate of George Moore Dunlop, against the bankrupt and his wife, the present appellant, and the trustees under her marriage-contract. The condescendence set forth that the appellant, at the age of nineteen, was married to gorge Moore Dunlop in 1860. NO ante-nuptial marriage-contract was executed. In 1861, her husband commenced business in Glasgow as an oil merchant and drysalter, in partnership with James Anderson Mackintosh, under the firm of Mackintosh, Dunlop, & Co. In 1862, the firm was dissolved by mutual consent, being then indebted to the amount of about £4000. In November 1862, Dunlop commenced business on his own account, and so continued till his estate was sequestrated on 6th August 1863, and Mr Johnston was elected trustee. On 29th March 1861, Dunlop and his wife executed a post-nuptial contract, whereby the husband bound himself to pay, for behoof of his wife, £5000 to certain marriage trustees, directing the trustees to pay the income to the wife during her life for her aliment and that of her family, such income being declared alimentary, and not affectable by her deeds or debts, or by creditors of the husband. In the event of her death, the trustees were to hold half of the capital —namely,…2500 for the benefit of the children, and to pay the other half to the husband. When the husband executed this deed, he was a minor. On 25th December 1862, Dunlop and his wife executed a supplementary contract, conveying to trustees certain securities in implement of the obligation in the marriage-contract, and varying the destination of the £5000. The trustees obtained payment from Dunlop of the sum of £5000, and became vested in the securities. It was alleged that the post-nuptial contract was a donatio inter virum et uxorem, and was revocable and revoked by the sequestration of the husband, and that the said provisions were not a reasonable and moderate provision for the wife, considering the circumstances of the husband.
The defenders, in their answers, set forth that at the time of the marriage Mr Dunlop's fortune amounted to £10,000, the wife having no fortune; that the post-nuptial contract was executed to secure the wife against the risks of the husband's business, and was fair and reasonable; that the wife, in consequence, renounced her legal rights; that the trustees were duly vested in the fund by registration and intimation; that the provisions were not now revocable, and that they were granted for onerous cause.
The Lord Ordinary (Barcaple) found that the provision of the post-nuptial contract, in so far as it directed payment of the income to the wife during the marriage, was a donation inter virum et uxorem, and was revocable, and was revoked by the sequestration. On reclaiming-note, the Lords of the Second Division adhered.
Mrs Dunlop appealed.
Lord Advocate (Gordon), Robert Horn and Rupert Potter, for her, argued—The marriage-contract provision could not be revoked by the bankrupt, or by the trustee for his creditors, because the bankrupt, at the date of his sequestration, was absolutely divested of the property in
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question. He had divested himself in implement of his natural and legal obligation to provide for his wife and children during the marriage, as well as after its dissolution, or his death. The provision was farther onerous, in respect that it was granted by the bankrupt, and accepted by the appellant, in lieu of her common-law rights. The bankrupt having deserted his wife and infant child, this was the sole fund on which they could come to save them from destitution. They relied on the decision of the House of Lords in Turn- bull's case, followed by that of Smitton, and the judgment of the First Division of the Court below in wright v. Harley. The provision for the children of the marriage could not be controverted. Anderson,. Q.C., Charles Scott, and Colt, for the respondent, were not called on.
At advising,
Appeal dismissed, but not with costs, as the appellant was a pauper.
Agents for Appellant — J. & A. Peddie, W.S., and John Greig, Westminster.
Agents for Respondents — John Walls, S.S.C., and Bannister and Robinson, London.