Keeley v. Anderson

California Court of Appeal Jun 5, 1936 No. Civ. 5461Published

Before: Steel

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Holding. The court held that the trial court's finding of good faith and solvency regarding the debtor's transfer of property to his wife was not supported by the evidence, and that the creditor's judgment lien was superior to the wife's title.

Issues

Whether the trial court's finding that the deed was not made to defraud creditors was supported by the evidence.
Whether the debtor's transfer of property to his wife rendered him insolvent and hindered his creditors.
Whether a judgment creditor must have an execution returned unsatisfied before challenging a fraudulent conveyance.

Disposition. reversed

Quotations verified verbatim against the opinion

“The inevitable result of this act on the part of the defendant was to hinder and delay his creditors in the enforcement of their just claims.”

“An examination of the entire record fails to furnish sufficient material evidence to create a substantial conflict in support of the finding of good faith and solvency.”

“It must necessarily follow from the authorities applicable to the facts herein that the lien of appellant’s judgment in and to the property in question is superior to the title of respondent”

STEEL, J.,

pro tem.

Defendant appeals from a judgment quieting plaintiff’s title to certain real property in Stanislaus County.

On October 19, 1929, J. C. Keeley, a son of H. C. Keeley and Lillie Ida Keeley, respondent herein, was indebted to appellant J. A. Anderson, in the sum of $1,000, or thereabouts, for repairs upon a certain truck or trucks belonging to said J. C. Keeley, and at that time the appellant Anderson was holding the equipment as security for the payment of such repair bill.

Upon the date above mentioned, and in consideration of the release of the equipment, H. C. Keeley and his said son J. C. Keeley, executed their promissory note in favor of Anderson for $1,000. Subsequently, and on the 14th day of February, 1930, H. C. Keeley, by deed of gift, conveyed to his wife Lillie Ida Keeley, all of his real property situate in Stanislaus County, and consisting of two lots in Adams colony and residential property in the city of Modesto. This deed, when executed, remained in the possession of the local title company who prepared it, until October 20, 1931, at which time it was recorded. On October 5, 1932, H. C. Keeley wrote a letter to J. C. Anderson as follows:

(Letterhead of Howard C. Keeley, Auditor of Stanislaus County.) \\

“Modesto, Oct. 5, 1932.

“J. A. Anderson,

Modesto, Calif.

“Dear Sir: Enclosed find $10.00 bill to apply on my account. In regard to that note of Jesses I am trying to get him to make some payments on this. I have paid in the past so many bills for him in the past, a few years ago I deeded all my property over to my wife so if any suits was brought to collect this on my part no doubt you would get judgment but when could you collect it.

“Yours truly,

“H. C. Keeley

“Please send receipt and statement of balance H.C.K.”

[469]

On the 28th day of October, 1932, Anderson commenced an action on said promissory note against H. C. Keeley and J. C. Keeley, the makers thereof, service was had, defendants defaulted, and judgment was entered on the 18th day of November, 1932, in favor of the plaintiff for $1330, together with $15 costs. An abstract of said judgment was filed on the same day in the office of the county recorder of Stanislaus County.

Keeley v. Anderson

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STEEL, J.,

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