Holt Manufacturing Co. v. Bennington

Citations

• 73 Wash. 467
• 132 P. 30
• 1913 Wash. LEXIS 1622

Syllabus

<p>Fraudulent Conveyances — Preferences—Evidence of Bona Fides —Sufficiency. Findings that a transfer by an insolvent to a creditor, of property of a value largely in excess of his claim, was not fraudulent as to other creditors, are sustained, where it appears from the uncontradicted evidence of five witnesses that the transfer was made in trust under a contemporaneous oral agreement for the purpose of preferring, in a specified order, the grantee and certain other hona fide creditors, who were consulted and consented thereto, and that the trustee sold the property at its fair value and applied the proceeds in accordance with the trust agreement; even though the preferred creditors knew that their claims would exhaust the property; since a failing debtor may prefer favored creditors to the exclusion of others.</p>