Priest v. Brown

Citations

• 100 Cal. 626
• 35 P. 323
• 1893 Cal. LEXIS 844

Syllabus

<p>Insolvency—Preference of Creditors—Fraudulent Conveyance.—A transfer of property by an insolvent debtor, made and accepted for the purpose of preferring a portion of his creditors, is unassailable, subject only to the right of an assignee in insolvency to set aside the transfer if made within one month before the commencement of insolvency proceedings, and cannot be set aside at the suit of a judgment creditor of the insolvent as a conveyance in fraud of other creditors.</p> <p>Tu.—Conveyance Upon Long Credit.—The fact that a conveyance by an insolvent debtor for the purpose of preferring certain creditors is not ■ made directly to the creditors, and is not made for money in hand, but in consideration of the notes of the purchaser, does not invalidate the transfer.</p> <p>Id.—Application of Notes by Grantor—Cood Faith of Purchaser.— Where the purchaser to whom an insolvent debtor has conveyed his property for the purpose of preferring some of his creditors believes at the time of the sale that his notes given for the property are to be used in payment of the claims of the creditors to be preferred, the fact that some of them are not so applied by the grantor does not render the conveyance fraudulent or invalid as against the creditors of the grantor; and the conveyance cannot he set aside for any fraud of the grantor upon his creditors in which the grantee did not participate.</p> <p>Appeal—Review of Conflicting Evidence—Depositions.—Where the evidence upon a question of fact is conflicting, a finding of the trial court thereon will not he disturbed upon appeal, even though the evidence consists of depositions.</p>