Careaga v. Moore

234 P. 121, 70 Cal. App. 614, 1925 Cal. App. LEXIS 10
CourtCalifornia Court of Appeal
DecidedJanuary 15, 1925
DocketDocket No. 4364.
StatusPublished
Cited by6 cases

This text of 234 P. 121 (Careaga v. Moore) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Careaga v. Moore, 234 P. 121, 70 Cal. App. 614, 1925 Cal. App. LEXIS 10 (Cal. Ct. App. 1925).

Opinion

HOUSER, J.

The purpose of the action herein involved is to obtain a decree of court setting aside as fraudulent and void, first, a deed to certain real property comprising 268 acres of land, made by one Thomas W. Moore to his wife, Mary Theresa Moore, who is one of the defendants; secondly, a deed covering the same property, made by said Mary Theresa Moore to defendants Fox; thirdly, a mortgage likewise conveying the same property, executed by defendants Fox to Santa Barbara Trust and Savings Bank' and assigned to the defendant Commercial Trust and Savings Bank; and, finally, to have said property declared a part of the assets of the estate of Thomas W. Moore, deceased, so that it may be used in payment of plaintiff’s allowed claim of $12,209.25 against said estate.

The property in question was formerly a part of a much larger tract of land belonging to Thomas' Hope, now deceased, and who was the father of defendant Mary Theresa Moore and her brother James C. Hope. On the death of Thomas Hope, defendant Mary Theresa Moore and James C. Hope each succeeded to an undivided one-twelfth interest in the estate of the father Thomas Hope. On May 19, 1890, James C. Hope, who had succeeded to the title to the land here in question, conveyed it to Thomas W. Moore (husband of defendant Mary Theresa Moore) for a consideration of approximately $20,000, which consideration was wholly paid by defendant Mary Theresa Moore.

On July 17, 1894, Thomas W. Moore conveyed the property to Mary Theresa Moore, and thereafter, to wit, on June 17, 1897, following Mr. Moore’s discharge in bankruptcy proceedings on the preceding day, Mrs. Moore reconveyed the property to Mr. Moore. Approximately nine months later, that is to say, on March 24, 1898, Mr. Moore again conveyed the property to Mrs. Moore. It is the last-named *617 instrument which plaintiff here seeks primarily to have set aside.

On March 22, 1911, Thomas W. Moore and Mary Theresa Moore gave a mortgage on the property to the Central Bank of Santa Barbara to secure a loan and future advances, which mortgage was later foreclosed. On October 13, 1917, which was within the time allowed by law for the redemption of the property foreclosure sale, the property was redeemed by Mary Theresa Moore with money obtained by her from the sale of the property to defendants Basil Fox and Thomas Fox, who procured the money necessary for the purpose by remortgaging the property to the Santa Barbara Savings and Loan Bank, which is the predecessor in interest of the Commercial Trust and Savings Bank, one of the defendants herein. The deed given by Mrs. Moore to defendants Fox and the mortgage given by defendants Fox to the Santa Barbara Savings and Loan Bank are also the subject of plaintiff’s attack.

Plaintiff’s cause of action is based upon a claim allowed him in the probate proceedings in the matter of the estate of Thomas W. Moore, deceased, which claim arose from an alleged indebtedness created by Thomas W. Moore in favor of plaintiff in 1914, or approximately sixteen years after the deed in question was given by said Moore to his wife Mary Theresa Moore, defendant herein. The deed was not recorded until shortly before the death of Mr. Moore and not until after his indebtedness to plaintiff was incurred. The evidence, however, shows that in extending credit to Mr. Moore, plaintiff placed no reliance in Moore’s apparent record ownership of the property. Plaintiff testified, among other things: “I didn’t make an investigation to see- who owned the ranch. I was not interested in it.”

On the trial of the action, among other facts, the court found that “it is not true that said Thomas W. Moore was in straitened circumstances or heavily or at all indebted at the time he executed said deed of grant to the defendant Mary Theresa Moore.” The court further found that said defendant Mary Theresa Moore was without knowledge of any fraudulent intention of the said Thomas W. Moore in executing said deed and did not participate in any fraud, but accepted said deed in good faith, and that said deed was not made with the intention to injure or delay or defraud Moore’s creditors. Furthermore, that the instrument of con *618 veyance of said real property from Mary Theresa Moore to defendants Fox was not made or accepted by said defendants or by either of them with knowledge of the facts alleged in the complaint. Also, that it was not true that at the time of the execution of said last-mentioned conveyance said defendants Fox had actual or any knowledge of a certain action involving issues similar to those presented in the instant case, brought by George W. Southwick against Mary Theresa Moore, or of the fact that said conveyance from Moore to his wife was fraudulent, and that neither of said defendants knew of the pendency of said action brought by Southwick. In addition thereto, the court found that it was not true that at the time of the making or the delivery of the promissory note and mortgage from the defendants Fox to the Santa Barbara Savings and Loan Bank any officer of said bank had actual or any knowledge of the said action brought by said Southwick, or of the alleged fraudulent nature of the conveyance from Moore to his wife, or had actual or any knowledge that the conveyance from Mary Theresa Moore to the defendants Fox was made or accepted by said defendants with knowledge of the alleged fraudulent nature of said conveyance from said Thomas W. Moore.

Judgment was rendered in favor of the defendants, and it is from such judgment that the appeal herein is taken.

Appellant urges that the evidence is insufficient to sustain the finding of the court to which reference has been had that “it is not true that said Thomas W. Moore was in straitened circumstances or heavily or at all indebted at the time he executed said deed of grant to the defendant Mary Theresa Moore.”

The bringing of the action was authorized by the provisions of section 1589 of the Code of Civil Procedure, which; is supplemented by the rule set forth in section 3439 of the. Civil Code, and which declares in effect, among other things, that any transfer of property with intent to delay or defraud any creditor of his demand is void.

The complaint contains an allegation that “while said Thomas W. Moore was in straitened circumstances and heavily indebted said Thomas W. Moore, . . . without valuable consideration therefor and with intention to injure, delay and defraud his creditors and particularly this plaintiff, voluntarily conveyed to the defendant Mary Theresa Moore” the property in question.

*619 For the purpose of sustaining such allegation of the complaint, certain evidence was introduced by plaintiff which tended to establish the fact that Thomas W. Moore was insolvent at the time he executed the deed of the property to defendant Mary Theresa Moore. The evidence to which attention has been directed is neither of the quantity nor quality which might be expected for the purpose of establishing so important a fact. One witness testified that subsequent to the transfer Mr. Moore had said that “he wanted to sell the ranch and hadn’t been able to sell it, and wanted some money because he owed some money, and he wanted to pay his creditors.” Other witnesses testified regarding certain alleged debts which were owing by Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
234 P. 121, 70 Cal. App. 614, 1925 Cal. App. LEXIS 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/careaga-v-moore-calctapp-1925.