Klosterman v. Mason County Central Railroad

Citations

• 8 Wash. 281
• 36 P. 136
• 1894 Wash. LEXIS 53

Syllabus

<p>SETTING ASIDE FRAUDULENT CONVEYANCE — PROCEEDINGS SUPPLEMENTAL— PLEADING — INSOLVENT CORPORATION — TRANSFER TO MORTGAGEE IN PAYMENT OF DEBT.</p> <p>The provisions of Code Proc., tit. 8, ch. 6, governing proceedings supplementary to execution, do not afford an adequate remedy for the purpose of cancelling and setting aside a fraudulent conveyance of real estate, and resort may consequently be had to a.court of equity for relief.</p> <p>In an action to set aside a fraudulent conveyance, an allegation in the complaint that plaintiff had obtained a specific lien upon the property sought to be subjected to his judgment is unnecessary.</p> <p>The transfer by an insolvent corporation of all its property to the mortgagee thereof is not such a preference over unsecured creditors as to constitute a fraudulent conveyance; nor is such transfer inhibited under the provisions of'art. 12, §8 of the constitution, declaring that no corporation shall alienate any franchise so as to relieve the franchise, or property held thereunder, from the liabilities incurred in the operation, use or énjoyment of such franchise.</p>