Kinder v. Macy

Citations

• 7 Cal. 206

Syllabus

<p>To maintain a creditor’s bill in chancery, in order to reach equitable assets, which are alleged to have been fraudulently conveyed, it is not sufficient simply to aver that the conveyance was fraudulent; but facts and circumstances must be set forth, which will reasonably sustain the theory of the bill.</p> <p>If the purchasers from parties alleged to have been insolvent, bought in good faith, it is immaterial how many valid prior liens may have attached on the property; they are entitled to what remains after the liens are satisfied; or they would have a right to pay the liens and keep the property; and a Court of Equity would not interfere in such a case.</p> <p>The prior liens, to the extent of their amount, diminish the value of the property, and meet so far the objection of inadequacy of price.</p> <p>The fact that the purchaser of tho property of a person actually insolvent, having been formerly an agent or clerk of the latter, does not necessarily raise the inference that his purchase was fraudulent: aliter, if he had taken an unfair advantage of the knowledge given by that position, or if it appeared that he had no apparent means to make the purchase.</p>