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13 Cal. 168

Goodwin v. Hammond

California Supreme Court

Decided July 1, 1859

California Supreme Court · decided 1859-07-01

The bill was based upon an attachment levied by plaintiffs, as creditors of defendants, Chittle & Wardner, on the stock in the California Coal Company, transferred by them to defendant, Hammond. Plaintiff had judgment, and defendant, Hammond, who alone answered, appeals.

Relies on Sands v. Codwise · Borland v. Walker

Good law ✅— No negative treatment on recordhow we know

Decided 1859-07-01

How this case has been cited

Cited by 7 later decisions (1 by the Supreme Court) — most recently October 1962

6 state decisions

30185918601870188018901900191019201930194019501960decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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Baldwin, J. delivered the opinion of the Court

¶1Terry, C. J. concurring.

¶2Bill to set aside as fraudulent two transfers of stock of the California Coal Company, from the defendants, Chittle and Wardner, to defendant Hammond. -

¶3The Court below, on express evidence of the existence of the fraud, found for the plaintiff.

¶4Several points are made by the Appellant.

¶51. That this proof was made by one witness only, and this in contradiction to the defendant’s answer, which was responsive to, and negatived the charge in the bill; and that, by the rule of equity pleading, this is not sufficient.

¶6The point is not well taken. We have held recently, in several cases, that the Practice Act governs all cases of pleading, legal and equitable, by the same rules, at least in this respect; and that the answer is not evidence for the defendant.

¶72. That the decree is against evidence. We have looked into the proof, and think it sustains the decree; at least, that the Judge below had legal evidence before him of the alleged fraud, *170and. we do not see any such error as would justify our interference with his conclusion.

¶83. That the decree is erroneous, in setting aside the transfer in toto, and not allowing the alleged fraudulent vendee to hold the stock as security, to reimburse him for the amounts expended by him in purchase money and assessments.

¶9In some cases of mere constructive frauds, this principle is held by Courts of Equity, and in some instances of actual fraud the like doctrine has been maintained. But these last are rare-exceptions to the general rule. Where the fraud is actual and characterizes the transaction ab initio, we think the better rule is, that the deed is void for any purpose of protection to the fraudulent actor. (See Borland v. Walker, 7 Ala. 280; Sands v. Codwise, 4 Johns. 536; where the authorities are collected.)

¶10The decree is affirmed.

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