Santa Ana Mortgage & Investment Co. v. Kinslow

California Court of Appeal Dec 21, 1938 No. Civ. 2187Published

Before: Marks

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Holding. The court held that an action to quiet title and cancel a fraudulent conveyance is equitable in nature, precluding a right to a jury trial, and that a voluntary conveyance made without consideration rendering the grantor insolvent is fraudulent as a matter of law.

Issues

Whether an action to quiet title and cancel a deed is an equitable action for which there is no right to a jury trial.
Whether a voluntary conveyance made without consideration that renders the grantor insolvent is fraudulent regardless of actual intent.
Whether a plaintiff must prove the grantor's title when both parties claim under a common source.

Disposition. affirmed

Quotations verified verbatim against the opinion

“An action to quiet title and an action to cancel an instrument are equitable actions in which a trial by jury is not a matter of right.”

“It was not necessary to allege an actual intent to defraud, where the conveyance which was under attack was made by her voluntarily, without consideration, and rendered Mrs. Kinslow insolvent.”

MARKS, J.

—This is an appeal from a judgment quieting plaintiff’s title to real estate in the city of Santa Ana in Orange County.

[109]

Prior to May 17,1933, John T. Kinslow and Leona E. Kins-low were husband and wife. John T. Kinslow died prior to that date. He left a deed conveying the property involved here to his widow. It was recorded on May 17, 1933. On June 1, 1933, Mrs. Kinslow signed and acknowledged a deed conveying the same property to her two sons, the defendants, Henry M. and Walter T. Kinslow. This deed was delivered in August, 1933, and recorded on December 18, 1933. She received no compensation for this deed and the transfer left her insolvent.

On December 22, 1931, Mrs. Kinslow signed a note in the principal sum of $5,500, payable to The First National Bank of Santa Ana. On May 23, 1933, she executed a second note in the principal sum of $900, and on October 11, 1933, a third note in the principal sum of $475. Principal payments were made on account of the first note but none were made on the others.

On February 17, 1934, The First National Bank of Santa Ana recovered a judgment against Mrs. Kinslow on these notes in the sum of $5,255.83, besides costs. Execution was issued on this judgment and on May 21, 1934, the property here involved was sold to the plaintiff in that action and a certificate of sale was issued. On November 1, 1935, The First National Bank of Santa Ana sold, assigned and granted the certificate of sale and the property to the plaintiff in this action.

This action was commenced on May 25, 1936. The complaint contains two causes of action. The first is in the usual form of an action to quiet title. The second pleads the facts we have outlined. The trial court found these facts to be true; that the deed from Mrs. Kinslow to defendants was voluntarily made without consideration and rendered Mrs. Kinslow insolvent and was fraudulent and void as against her creditor, The First National Bank of Santa Ana, and plaintiff, its successor in interest. Judgment was entered quieting plaintiff’s title to the property and cancelling the deed from Mrs. Kinslow to defendants.

Defendants demanded a jury trial. This demand was refused by the trial court. This is now assigned as error. An action to quiet title and an action to cancel an instrument are equitable actions in which a trial by jury is not a matter of right.

Santa Ana Mortgage & Investment Co. v. Kinslow

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MARKS, J.

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