Adams v. Dempsey

Citations

• 35 Wash. 80
• 76 P. 538
• 1904 Wash. LEXIS 416

Syllabus

<p>Fraudulent Conveyances — Chattel Mortgage in Fraud of Creditors — Good Faith — Evidence—Sufficiency. Upon an issue as to whether a chattel mortgage given by a debtor was fraudulent and void as to attaching creditors, there is sufficient evidence to require the good faith of the transaction to be submitted to the jury, where it appears that the mortgage was given by the debtor to his brother when insolvent and on the brink of financial ruin, that the mortgage covered all his property, valued at from $3,000 to $4,000, while the debt secured was only $1,650, and that the debtor had repeatedly said that he owed his brother nothing.</p> <p>Same — Fraud in Law — Instruction as to Facts Constituting Fraud. Upon an issue as to whether a conveyance was fraudulent as to creditors, it is proper to instruct that a debtor in failing circumstances, who transfers all his property to one creditor with a secret understanding to receive part of the proceeds or secure a benefit at the expense of other creditors, is guilty of a fraud upon his creditors; since such facts constitute fraud in law, and are more than mere evidence of fraud.</p>