Wood v. Kaplan

KAUFMAN, P. J.

This is an action by a judgment creditor of defendant, Max Kaplan, to set aside an alleged fraudulent transfer made by him to his son and daughter-in-law, Sidney and Rose Kaplan, the appellants. The trial court found that the property had been fraudulently transferred and decreed that the appellants held in trust for the respondent $4,992.02 of the proceeds of the subsequent sale of the property. The only argument on appeal is that the evidence is insufficient to support the judgment as there was evidence that the appellants had given fair consideration for the property and in the alternative, that there was ample evidence of a completed parol gift by appellants’ transferors.

The respondent, Henry Wood, was an employee of Max and Beclde Kaplan, the parents of Sidney Kaplan. Sidney and his wife, Rose, lived with his parents for many years on the property in Salinas which is the subject of this dispute. There was a close and confidential relationship between all the members of the Kaplan family throughout the period of time which is relevant here.

On August 24, 1954, the plaintiff, Henry Wood, suffered major burns in the course and scope of his work as an em

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ployee of Max and Beckie Kaplan. His employers carried no workmen’s compensation insurance. Max testified that he knew his insurance had expired before the accident. There was also evidence that because of this fact, on the day after the accident, Max tried to influence the respondent’s attorney to drop the suit by offering to pay his fee. On the date of the accident, Max Kaplan was worth about $100,000 in property, his chief asset being the Salinas property. On August 25, 1954, Max and Beckie Kaplan quitclaimed all of their property to their son and daughter-in-law. The deed was prepared, executed and recorded on August 25, 1954. As a result of this transaction, Max and Beckie became insolvent.

On November 3, 1954, Beckie Kaplan died. On June 1, 1955, the Industrial Accident Commission rendered an award to the respondent Wood against Max Kaplan. On June 27, 1955, Sidney and Rose Kaplan sold the unimproved portion of the Salinas property and applied the proceeds of the sale to reduce the mortgage. On August 25, 1955, the plaintiff converted his award into a superior court judgment. Execution was issued on September 13, 1955, and returned unsatisfied because on September 9, 1955, Sidney and Rose deeded the balance of the property to the Bertlesmans. The proceeds of this transaction were used to pay the balance of the mortgage, and the remainder was applied by Sidney Kaplan for his own benefit.