Gilman v. Superior Court

260 P. 922, 86 Cal. App. 259, 1927 Cal. App. LEXIS 187
CourtCalifornia Court of Appeal
DecidedOctober 22, 1927
DocketDocket No. 3339.
StatusPublished
Cited by1 cases

This text of 260 P. 922 (Gilman v. Superior Court) 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
Gilman v. Superior Court, 260 P. 922, 86 Cal. App. 259, 1927 Cal. App. LEXIS 187 (Cal. Ct. App. 1927).

Opinion

FINCH, P. J.

This is an original proceeding to review the action of the respondent in adjudging the petitioners guilty of contempt of court.

December 5, 1925, the Alpha Hardware & Supply Company commenced an action in the Superior Court of Nevada County against the Ruby Mines Company and other defendants, including the petitioners herein. The complaint therein set up six alleged causes of action, in the first five of which judgment was entered in favor of the defendants. In the sixth cause of action it is alleged that the Ruby Mines Company “is indebted to the plaintiff in the sum of $4,838.19 on account of” five judgments in favor of plaintiff or its assignors against the defendant company; that all of the judgments have been docketed in Sierra County and constitute liens on all real property of the Ruby Mines Company in that county; that said company is the owner of *261 the lands in Sierra County described in the trust deed hereinafter referred to; that petitioners and other defendants were the directors of the Ruby Mines Company and as such directors, “for the purpose of hindering, delaying and defrauding plaintiff and plaintiff’s said assignors and creating an unlawful preference or gift to the defendant Dwight Hutchinson, . . . and without any valuable consideration therefor, . . . caused to be executed . . . the promissory note and deed of trust . . . described in Exhibit A’ attached hereto and made a part hereof”; that the Ruby Mines Company “has never at any time been indebted to any of the defendants herein”; that “defendant M. C. Mitchell claims some right, title or interest in and to said property under and by virtue of said trust deed, and that defendants H. L. Breed and W. M. Thornton, trustees named in said trust deed, and defendant M. C. Mitchell have taken, and are prosecuting, proceedings under the terms and conditions of said trust deed ... to sell said property . . . and to foreclose all the right, title, and interest of said defendant, the Ruby Mines Company, in and to said property”; that executions upon said judgments were issued and “returned wholly unsatisfied”; that the defendant Ruby Mines Company is insolvent; that it is controlled by said defendant directors and “is prevented by said defendants from taking any action to pay the indebtedness owing to plaintiff as aforesaid”; and that the petitioners herein and certain other defendants are stockholders of the Ruby Mines Company and were such when the alleged debts were incurred. The alleged trust deed was executed by the Ruby Mines Company to Breed and Thornton as trustees to secure the payment of its promissory note to Hutchinson for forty thousand dollars.

The defendants demurred to the complaint and apparently it is conceded that the demurrer was sustained, although the petition does not so allege. Thereafter the plaintiff filed a pleading, designated as “First Amended Complaint,” and, in so far as material here, reading as follows:

“Now comes the above-named plaintiff and amends the complaint on file herein as follows, to-wit: . . . That paragraphs I to VI both paragraphs inclusive, in the sixth cause of action, set forth in the original complaint, are hereby *262 referred to and made a part hereof as fully for all purposes as if set forth at length herein; that the deed of trust attached to said original complaint is hereby referred to and made a part hereof as fully for all purposes as if set forth at length herein.”

The sixth cause of action, as stated in the original complaint, contained but six paragraphs. The prayer of the amended complaint is for judgment:

“That each of said defendants may be required to set forth the nature of his claim in and to the stock, note, trust deed and property of said defendant, Ruby Mines Company, or either of them, and that all adverse claims of the said defendants, or either of them, be determined by this court; . . . that it be adjudged, decreed and determined that said deed of trust and promissory note are fraudulent and void; . . . that the title of said defendant, Ruby Mines Company, in and to the said property be quieted- against any and all claims of said defendants; . . . that said defendants, other than said defendant, Ruby Mines Company, . . . be forever debarred from asserting any claim whatever in or to said land, property and premises, adverse to the said defendant, Ruby Mines Company, or to the said liens of this plaintiff; . . . and for such other and further relief as is meet and agreeable to equity.”

The defendants other than the Ruby Mines Company demurred to the amended complaint and, their demurrer being overruled, they answered the allegations of the original complaint referred to in the amended complaint. Upon the issues so framed the court found, among other facts, as follows:

That the Ruby Mines Company is the owner of the real property described in the trust deed; that the alleged judgments in favor of plaintiff constitute valid liens thereon; that the trust deed is a fraudulent conveyance, “executed for the purpose ... of hindering, delaying and defrauding the creditors of said defendant Ruby Mines Company and . . . plaintiff and plaintiff’s assignors, in the collection of the several debts then owing them from said defendant, Ruby Mines Company, . . . that plaintiff’s claims and liens in and upon the title to said real property are superior to the right, title and interest of said defendants, and each of them, in and to said real property.”

*263 Judgment was entered on the findings, canceling the said promissory note and trust deed; adjudging that the Ruby Mines Company is the owner of the real property in controversy, subject to plaintiff’s judgment liens, but “not subject to any valid right, title, estate, lien or interest of any or all the other defendants, . . . and that the aforesaid judgment liens of plaintiff are superior to the claims of all such . . . defendants; that said defendants and each and every of them, . . . be, and they are hereby, forever debarred and restrained from asserting any claim whatever in or to said real property and premises, or any part thereof, adverse to the said defendant, Ruby Mines Company, or adverse to the said judgment liens of plaintiff.”

The petitioners herein and certain other defendants appealed from the judgment and thereafter commenced an action in the Superior Court of Sierra County against the Ruby Mines Company, the Alpha Hardware & Supply Company, and others to have it adjudged:

“That the claims and liens of the defendant Alpha Hardware & Supply Company and its assignors, against the hereinabove described properties (the real properties described in the aforesaid trust deed) by virtue of judgments obtained against the Ruby Mines Company, or otherwise, be declared null and void; that the plaintiff’s title be quieted in said properties; . . . that the defendant Ruby Mines Company holds the record title to and possession of the said properties only as trustee for the benefit of the plaintiffs herein”; and that the Alpha Hardware & Supply Company “be forever enjoined and restrained from . . . asserting or enforcing any claims of liens or otherwise, or exercising any acts of ownership or control over the said properties or any part thereof by virtue of any judgments or rights against the defendant Ruby Mines Company, or otherwise.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alpha Hardware & Supply Co. v. Ruby Mines Co.
275 P. 984 (California Court of Appeal, 1929)

Cite This Page — Counsel Stack

Bluebook (online)
260 P. 922, 86 Cal. App. 259, 1927 Cal. App. LEXIS 187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilman-v-superior-court-calctapp-1927.