Oscar Krenz Copper & Brass Works, Inc. v. Shamgochian

NOURSE, J.

Plaintiff sued the defendants as husband and wife to set aside as fraudulent the deed of the husband to his wife of certain real property in Fresno County. Plaintiff had judgment from which the defendants have appealed on a typewritten transcript.

In the early part of 1918 the defendant husband erected a factory at Manteca in which he installed certain machinery which he had purchased from plaintiff under a written contract under which he agreed to keep the machinery insured against fire. As an inducement for this contract this defendant then represented that he was the sole owner of the real property in suit and that it was clear of all indebtedness. The Manteca plant was destroyed by fire in 1918 and soon thereafter this defendant was arrested and charged with arson. Pending trial of the charge, and on August 28, 1918, this defendant voluntarily conveyed to his wife the property in suit consisting of 58 acres of vineyard land of the estimated value of $60,000. In March, 1919, this defendant was tried and acquitted of the charge of arson and in August of the same year the insurance companies paid him $27,554.68 for the loss sustained in the fire, the adjustment having been made by a broker employed by this defendant immediately after the fire and given full authority by him to deal with his numerous creditors. This agent, with the sanction of this defendant, assured these creditors that their claims would be paid from the moneys received from the insurance, but, when this defendant received the moneys, he failed to make payment. In a suit upon the claim judgment was had by the plaintiff herein for the full amount of its claim and execution thereon was returned in the sum of $8,78 which was credited on the judgment.

At the time of the execution of the deed to the property in suit the liabilities of the husband far exceeded his assets other than this particular property. There was no consideration for the transfer other than an indebtedness claimed to be owing the wife which defendants claim to have been $9,250. The net annual income from the property was estimated to be $9,000. The two defendants continued to live

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upon the property after the transfer, the wife claiming that she paid her husband $700 a year for his services in caring for the property.