Raynor v. Mintzer

7 P. 431, 67 Cal. 159, 1885 Cal. LEXIS 587
CourtCalifornia Supreme Court
DecidedJune 23, 1885
DocketNo. 9755
StatusPublished
Cited by9 cases

This text of 7 P. 431 (Raynor v. Mintzer) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Raynor v. Mintzer, 7 P. 431, 67 Cal. 159, 1885 Cal. LEXIS 587 (Cal. 1885).

Opinion

McKee, J.

This is a suit in equity to set aside a money judgment, declare void an execution sale made under it, and annul and cancel the certificate of sale and sheriff’s deed made to the defendants; or to have the defendants, the grantees named in the deed, adjudged trustees for the plaintiff, in respect of all property belonging to him and transferred to them by the sheriff’s deed, and to compel them to reconvey the same to the plaintiff upon such terms as may be just, etc.

Plaintiff claims to be entitled to the relief demanded upon the ground that the action in which the judgment was recovered [160]*160"was commenced against him, and prosecuted to judgment and execution sale by the plaintiff in the action, not of his own motion, nor in his own behalf, but- at the instigation of the defendants and for their benefit, upon an arrangement or conspiracy between them to use, under cover of the plaintiff’s name, the proceedings and legal process in the case for the purpose of fraudulently acquiring to themselves Raynor’s interest in the lands and premises described. in the complaint. The object of the suit is therefore to obtain restitution from the defendants, of real property of the plaintiff claimed to have been acquired, and do be held by them by fraud.

The frauds by which it is claimed the defendants acquired the property arose out of the following transactions: Raynor was ’insolvent and wholly unable to pay anything to his creditors; -but he claimed to be a tenant in common with the defendants, Mintzer, Fox, Peacock, Hunt, Cameron, and Davis, to the extent of an undivided four-sevenths interest in the real property described in the complaint; and that his co-tenants had .fraudulently acquired from him his interest, and after acquiring .the same, had organized themselves into a corporation by the name of the Colton Land and Water Company, of which they .became the only members or,stockholders, and to which they transferred the entire common property, which constituted th.e only capital stock of the corporation, and the same was apportioned among them according to their respective interests in. the property. Having thus acquired title to the property, the corporation commenced an action to quiet title against Raynor and to enjoin him from asserting- any claim to the property. He appeared in the action and filed an answer containing a eross'complaint, in which he asked as affirmative relief that he be ’adjudged the owner of an undivided four-sevenths interest in :the property conveyed by his co-tenants to the corporation; and that they and the corporation be adjudged to hold the same in trust for him and be compelled to reconvey it to him. On the .final hearing of the case the court decided in his favor, adjudged ¡that he was the owner of an undivided four sevenths of the property conveyed to the corporation, and entitled to a recon-.veyance of the same from the corporation and the other defendants; and it commanded them to execute and deliver to him a [161]*161conveyance of the same. With that adjudication the defendants were dissatisfied and appealed to this court. On the hearing of the appeal, this court, at the January term, 1881, modified and affirmed the judgment of the Superior Court (see Colton Land and Water Co. v. Raynor, 57 Cal. 588), and Raynor’s ownership and interest in the property was, by that adjudication, fully ■and legally established.

But pending that appeal the appellants in the action set to work to evade the judgment appealed from, if the appeal should be decided against them. For that purpose they stirred up the creditors of Raynor to sue him upon their claims, and have whatever interest in the property might be finally adjudged to .him, levied on and sold. This they did by intimations that the .corporation would buy from them whatever interests they might .thus acquire. C. P. Clyde was one of Raynor’s principal credit•ors, and an arrangement was made with him whereby he agreed to commence an action upon his claim of $1,800, against Raynor, and prosecute it to judgment, execution levy and sale for the benefit of the appellants, who were to pay him the amount of his claim, after he had obtained a sale of the property under the judgment and transferred to them the certificate of sale. Clyde •carried out this arrangement by commencing an action against •.Raynor in which he obtained judgment by default, upon which •an execution was issued, which was levied upon Raynor’s interest in the property. At the execution sale Clyde bought the ■property in his own name; but the sheriff refused him a certificate of sale because the appellants failed in their promise to pay the fees; and in order to obtain the certificate Clyde agreed with them to take $1,000, for the interest in the property .acquired by the sale, and pay the sheriff’s fees.- That was done, the fees were paid, the sheriff issued to him a certificate of sale which he immediately assigned to the appellants. The entire .transaction was commenced and consummated pending the appeal.

; This transaction the court found was, in itself, an open attempt to evade the judgment appealed from, and to acquire in an indirect manner the property which had been adjudged to Raynor, and also a continuation of the scheme, stamped, in the action in .which the appeal was pending, as “a fraud on the rights of [162]*162Raynor attempted to be carried out by means of the cloaked machinery of a corporation.” It therefore ordered all the defendants in the action, except Clyde and the corporation, as trustees of Raynor’s title in the property acquired by the sheriff’s deed on the Clyde judgment and execution, to reconvey the same to Raynor upon payment of the $1,000, and interest thereon, which they had given Clyde for the assignment to them of the certificate of sale.

This relief, it is insisted, “is contrary to law and equity,” and is based upon findings which do not cover the issues raised by the pleadings in the case, and are not sustained by the evidence.

We cannot agree with this contention; the evidence sustains the findings, the findings cover the issues, and the decision and judgment are in accordance with the plainest principles of equity. When title to real property has been acquired by fraud, the true owner is entitled to be relieved against the fraud, and to be re-invested with his ownership upon such terms as may be just.

The terms upon which the relief were granted were just. By its decree the court undid the wrong which had. been done, and left all the parties to the transaction in possession of their legal rights as they were before the assignment of the certificate of purchase. Raynor was restored to his original- position as a tenant in common with his cotenants in the property, upon paying to them the moneys which they had paid to Clyde for his interest in the property. Upon receiving that money they had no longer any right in his property which they could in conscience retain. For it is conceded that, originally, Raynor was a tenant in common, with them in the property, and when they assumed the exclusive possession of it under the transactions with him and the instruments in writing executed by him, adjudicated in the case of the Colton Land and Water Company v. Raynor, they held the apparent legal, title to his interest in the common property in trust for him. ■ This title, whether held by him or by them in trust for him, vested him with the right to his share in the property, and in the proceeds derived from it under .the arrangement between the tenants in common as to the management and disposition of -the property as adjudged in that case.

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Bluebook (online)
7 P. 431, 67 Cal. 159, 1885 Cal. LEXIS 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raynor-v-mintzer-cal-1885.