Ostbern
Ostbern v. Dean
Opinion
Lead Opinion
Dietrich, J.
The trustee in bankruptcy of the estate of Nellie R. Ostbern brought this suit to have declared void for fraud a transaction of March 16,1923, by which the bankrupt transferred to her husband, the defendant F. E. Ostbern, her interest in certain personal property and valuable real estate. A default decree quieting title to the same property, entered in favor of F. E. Ostbern against the bankrupt and others on January 23, 1924, also was assailed as being collusive and fraudulent. There was a decree for the .trustee as prayed, and the Ostbems appeal.
The property is situate, and the transaction took place, in California. Section 3440 of the Civil Code of that state provides that “every transfer of property or charge thereon made, every obligation incurred, and every judicial proceeding taken, with intent to delay or defraud any creditor or other person of his demands, is void against all creditors of the debtor, and their successors in interest. • * * }>
. It is not questioned that the statute may be invoked and the suit maintained by the trustee, who, under the Bankruptcy Act as amended in 1910 (Comp. St. § 9585 et seq.), has all the attributes of a creditor “armed with process.”…