Allen v. Kane

Citations

• 79 Wash. 248
• 140 P. 534
• 1914 Wash. LEXIS 1207

Syllabus

<p>Fraudulent Conveyances — “Creditors”—Necessity oe Judgment. The vendee in a contract of sale of real property, who had paid $1,000 as earnest money, is a “creditor” of the vendor at the time the vendor repudiates the contract and, tendering repayment of the earnest money, sells and conveys the land to another, within the meaning of the statute of frauds, 13 Eliz. c. 5, providing that all conveyances made with intent to hinder, delay or defraud creditors shall be void; it not being necessary that the claim be reduced to judgment to make the claimant a “creditor.”</p> <p>Same- — What Constitutes — Breach oe Contract — Intent — Evidence — Sufficiency. The breach of a contract to convey property by the sale of the same to another is shown to be fraudulent as to the vendee as a creditor, where at the same time the vendor hastily conveyed away all her other property thus making herself execution proof, and by a secret agreement took back a contract giving her the exclusive agency to control and sell the property for one year, and withheld from the record conveyances of property received as part consideration.</p> <p>Same — Fraudulent Grantee — Bona Fides — Evidence—Sufficiency. In such a case, the fraudulent vendee is not a dona fide purchaser, as to payments made after notice of the fraudulent nature of the original transaction, where, after knowledge that ought to have convinced him of the fraudulent purpose of the grantor, he entered into a new contract, whereby, in lieu of property of which he was to have conveyed in part payment, he paid them $2,500 as a part of the consideration of his original purchase.</p> <p>Same — Insolvency-—Preferences—Validity. The right to secure a preference by purchasing all of the insolvent’s property does not exist when the creditor has knowledge that the purpose of the insolvent debtor was to place his property out of the reach of other creditors, appropriating any part of the purchase price to his own use, and the preference might h