Economy Refining & Service Co. v. Royal National Bank of New York

Royal National Bank of New York appeals from a judgment which denies it as cross-complainant relief under its action against respondents on alleged fraudulent conveyances, and which quiets title in respondent Economy Refining & Service Co., Inc. (hereinafter, Economy) to the property allegedly fraudulently conveyed. The conveyances, to Michael D. Marcus, which purportedly became effective on July 30, 1965, were a quitclaim deed, a bill of sale, and certain assignments, all of which were made by Universal Petrochem Corporation (hereinafter, UPC). The conveyances completely stripped the corporation of its assets and made impossible the collection of a judgment which appellant bank had originally obtained in the State of New York, and later obtained by an action on the judgment in California against UPC, and which was about to be recorded at the time of the effectuating of the conveyances.

The events leading to the transfers of July 30, 1965, may be narrated briefly. Marcus, an investment counselor, had obtained shares of stock of UPC in. exchange for the release of judgments which he held against Irving Rill, majority stockholder of the company. The company was pressed for…