137 Misc. 719 | N.Y. Sup. Ct. | 1930
The judgment debtor’s conveyance to her daughter and the judgment obtained by the debtor’s son-in-law (husband of the daughter referred to) against her upon her confession are attacked. The court finds there was no consideration for the note upon which the judgment is based and that the judgment is fraudulent and was confessed to defeat the claim of the plaintiff. The conveyance had a consideration, an antecedent indebtedness, but it was made for the purpose of defeating plaintiff’s claim. This finding is required by the evidence. The legal question then is whether the conveyance is valid or is good only as security for the amount of the antecedent debt, or should be set aside as fraudulent. The general subject of fraudulent conveyances is now dealt with mainly in the Debtor and Creditor Law, though there still are provisions relating to it in the Real Property Law (See §§ 265, 266 et seq.) By the terms of the Debtor and Creditor Law every conveyance by a person who is insolvent or which renders him insolvent is fraudulent as to creditors without regard to his actual intent if made “ without a fair consideration ” (Debtor and Creditor Law, § 273, as added by Laws of 1925, chap. 254). “ Fair consideration ” is deemed to be given when in exchange for the property “as a fair equivalent therefor and in good faith, property
Judgment for the plaintiff, with costs. Settle findings and judgment on notice.