Hepner v. Hepner

TUTTLE, J.

This is an action brought by a creditor to set aside a transfer of stock in trade, upon the ground of

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fraud. Findings upon all issues were made in favor of defendants by the trial court, and judgment was rendered for defendants.

Defendant, Rita Hepner, is executrix of the estate of William Hepner, deceased. Plaintiff filed two creditor’s claims against said estate, one for $6,380, and the other for $2,640. The first was based upon a promissory note executed by decedent, and the second upon alimony due. The claims were allowed and approved. This action was then brought to set aside a conveyance of a stock in trade which was owned by decedent.

William Hepner and his wife, Rita, were married in 1916. They lived and worked together until Hepner died in February, 1932. He was engaged in the manufacture and sale of wigs, cosmetics and beauty specialties, with stores in New York, Washington, D. C., and Los Angeles. This controversy arose over the transfer of stock in a store conducted on Sunset Boulevard, Los Angeles. For a number of years Hepner’s wife (defendant here), had worked with him in the store, and she continued to do so until his death. On October 28, 1929, Hepner executed and delivered to plaintiff the promissory note which is the basis of one of the claims filed against the estate. This note was for $6,380, and should be construed as payable on demand. Prior to May 1, 1930, Hepner was also indebted to plaintiff for accrued alimony in the sum of $2,640 (the basis of the second claim filed against the estate). On the last mentioned date Hepner sold and transferred to his wife the stock of goods and fixtures in said store. The trial court found that there was consideration for this transfer, and this finding has evidentiary support. After the transfer the wife continued to work in the business as she had done for some years prior thereto. There was absolutely no outward indication of any change in the management and póssession of the store, as the following testimony of defendant clearly indicates:

“Q. After this business was transferred to you in May, 1930, did you continue to work in the business? A. I did. Q. And was the set-up of the business changed in any way as to the running of the business? A. No.”