Lewis

Defendants appeal, and plaintiffs cross-appeal, from judgment entered in an action to set aside fraudulent conveyances.

Factual and Procedural Background

The Prior Action

In 1979 Helen J. Lewis, Williamarie Pettus and Irving and Dorothy Hunt sued William E. Hankins, Jr., for fraudulent and unlawful business practices in violation of Business and Professions Code section 17200 et seq. The amended complaint alleged that plaintiffs were victims of such practices whereby defendant induced homeowners threatened with foreclosure to deed their homes to defendant as security for loans made or arranged by defendant to enable homeowers to avoid foreclosure. Homeowners were made to sign papers whereby they granted title to their homes to defendant, were obligated to repay sums in excess of the amount of the underlying encumbrances on the homes, were charged usurious rates of interest, and were required to pay to defendant, as “rent” for the privilege of continuing to occupy their homes, sums substantially in excess of the monthly payments they previously owed on the underlying encumbrances.

In October 1980, pursuant to stipulation of the parties, a “Decree and Final Judgment of…