State Codes and Statutes
Statutes > Connecticut > Title52 > Chap923a > Sec52-552Sec. 52-552. Fraudulent conveyances, judgments, contracts, when void. Section 52-552 is repealed.
(1949 Rev., S. 8295; P.A. 91-297, S. 13.)
Annotations to repealed section:
In general. Statute substantially copied from 43 Eliz. c. 5, and to be similarly construed. 8 C. 189; 50 C. 32. If facts are admitted, question is one of law; 15 C. 19; otherwise question is one of fact. 83 C. 511; 84 C. 628. Necessary allegations of pleadings to avoid. 68 C. 580; 81 C. 626; 84 C. 628; 100 C. 718. Property may still be attached; 68 C. 390; and this proper remedy rather than bill for reconveyance; 84 C. 682; but where grantor is dead, see 85 C. 698. Burden of proof. 76 C. 197; 77 C. 142; 83 C. 109; 108 C. 94. Matters of evidence. 75 C. 17; Id., 491; 81 C. 626; 83 C. 511. Plaintiff may ask for damages and that conveyance be set aside. 100 C. 718. Need not allege there is no adequate remedy at law if it so appears in complaint. Id., 718. Finding de existence of "debt or duty" reviewable as conclusion drawn from subordinate facts; 103 C. 624; conveyance to son by buyer just having made contract of purchase. Id., 640. All parties to deed must be defendants in suit to set it aside. 105 C. 557. Introduction in evidence of deed from defendant in negligence action to his wife for purpose of showing consciousness of liability. 107 C. 157. Cited. 131 C. 563. See note to section 52-562. The terms of the statute are broad, and it is not the nature or form of the transaction but the presence of fraud which brings a case within the prohibition of the statute. 180 C. 430. Cited. 191 C. 194. Cited. 193 C. 304. Cited. 208 C. 606. Cited. 209 C. 437. Cited. 214 C. 8. Cited. 221 C. 698.
What conveyances are fraudulent. General rule. 76 C. 198; 101 C. 697. A voluntary conveyance by one much indebted is fraudulent. 5 D. 341; 3 C. 450; 10 C. 137; 39 C. 566; 43 C. 23; 62 C. 451. So is one by an insolvent to a near relative. 39 C. 241. And even a creditor who advises such conveyance may take advantage of it. 5 D. 136. It may be void even against subsequent creditors. 5 D. 341; 35 C. 328; 39 C. 566; 101 C. 699. A voluntary conveyance to defeat a claim for tort is fraudulent; 1 C. 295; but not under this statute. 98 C. 582; 110 C. 318; 134 C. 207. Conveyance to prevent an attachment in a divorce action. 68 C. 580; 78 C. 414. Conveyance to one which deprives unfaithful wife of dower. 72 C. 271. But there is no presumption of fraud where one having no debts conveys away property; 1 C. 525; 8 C. 186; 84 C. 682; and subsequent creditors cannot ordinarily object. 31 C. 372; 43 C. 23. Voluntary consideration means one without substantial consideration. 62 C. 451. Even a bona fide grantee will not be protected, if he gives no consideration. 75 C. 665. And a voluntary reconveyance, where the original grantor is much indebted, will not be upheld; 10 C. 69; unless applied to the payment of debts. 4 C. 1. Gift in consideration of affection will prevail unless creditors or purchasers are injured. 81 C. 372. What constitutes consideration; use of wife's property by husband. 78 C. 472. Transactions between husband and wife to be closely scrutinized; 51 C. 567; but husband may have merely taken legal title for her; 83 C. 110; consideration should be wife's money; 65 C. 442; and she must be without knowledge of fraud; 65 C. 73; and if he conveys most of his property to her, court will presume it fraudulent; 71 C. 81; so where insolvent assigns insurance money to wife and children; 61 C. 248; effect of relationship is for trial court; 65 C. 73; 68 C. 2; 76 C. 198; but a conveyance by a husband not preventing payment of debts may be valid; 77 C. 142; 87 C. 113; conveyance by a husband to a cotenant who then conveys to wife whole property and is paid only for his interest is fraudulent; 81 C. 116; so where a husband fraudulently conveys property to wife without her knowledge. 24 C. 290; Id., 406; 39 C. 238. A conveyance to a friend to conceal property is fraudulent. 13 C. 146. An executory agreement to aid person to delay his creditors is unenforceable. 5 D. 223. Relationship of debtor and creditor as consideration. 78 C. 468. At common law a creditor could be preferred; 47 C. 54; unless insolvency proceedings followed. 58 C. 82. Conveyance of land in consideration of support held valid. 52 C. 516. Conveyance of property to avoid an attachment as fraudulent; 84 C. 628; to avoid obligation of husband to support wife; Id., 678; so assignment by insured to her attorney to defeat defenses of insurance company. 83 C. 700; 89 C. 45. A grantee who gives consideration must know of and participate in fraud to enable creditors to take property; 26 C. 480; 34 C. 316; 37 C. 148; 38 C. 490; 41 C. 613; 98 C. 355; mere knowledge that vendor is in failing circumstances not enough; 30 C. 15; there must be an actual belief in vendor's intention to defraud, but this may be inferred; 57 C. 221; and purchase from insolvent for price much under value raises a presumption against him; 38 C. 416; vendee must act in perfect good faith; 38 C. 490; but conveyance to debtor on agreement for sale and payment to vendor of surplus over debt not necessarily fraudulent; 33 C. 306; a bona fide purchaser for a good consideration will be protected; 62 C. 451; 65 C. 73; 72 C. 711; 75 C. 635; 76 C. 517; 78 C. 468; Id., 679; 87 C. 110; but not if he participates in fraud; 78 C. 414; 83 C. 511; 98 C. 355; conveyance of legal title to holder of equity; 87 C. 110; rights of purchasers from grantee. 1 C. 527, note; 3 C. 450; 17 C. 492; 37 C. 148; 38 C. 490; 39 C. 406. How far equity will sustain mortgage given on inadequate consideration against creditors; 19 C. 20; effect of including in mortgage agreement for future support; 15 C. 19; absolute deed to secure debt and subsequent advances upheld; 46 C. 430; so mortgage by solvent corporation for lawful object; 47 C. 382; but the provisions of a trust mortgage were held invalid against nonassenting creditors; 49 C. 320; a trust deed good in state where made as to its residents upheld here as to them; 52 C. 362; failure to record separate defeasance; 85 C. 46; so mortgage; Id., 698. See note to section 47-10. Permitting record title to remain in another. 87 C. 99. Conveying property to one who agrees to hold it for grantor. 81 C. 626. Assignment of accounts due, not perfected, whereby assignor is given false credit, is fraudulent. 93 C. 130. Incorporation of business by individual, with transfer of property to it and assumption of liabilities by it, not prima facie improper. 95 C. 713. Subsequent creditors may impeach where insolvency continuous. 101 C. 699. Conveyance to son; 103 C. 640; by brothers to sister; 100 C. 713; by administrator to dummy who reconveyed to him and five of six heirs without consideration; 105 C. 557. Statute is adoption of the common law of fraudulent conveyances and common law remedy still exists. Conveyance by defendant of interest in marital home to relative set aside as constructively fraudulent since defendant owed alimony and support to plaintiff, conveyance was for nominal consideration and conveyance rendered defendant insolvent. 184 C. 530.
Retention of possession of personal property. Possession by vendor as evidence of fraud. 3 C. 160; Id., 431; 4 C. 450; 5 C. 196; 6 C. 277; 14 C. 240; id., 529; 37 C. 508. The rule does not apply to real estate; 31 C. 428; nor to intangible property, as shares of stock; 87 C. 601; nor property exempt from execution. 4 C. 450; 46 C. 415. Mere colorable delivery not enough. 19 C. 460; 20 C. 23; 21 C. 361; Id., 604; 101 C. 565. Limitations of rule; 72 C. 509; not wholly applicable as against receiver; 71 C. 345; nor in case of assignment for benefit of creditors. 14 C. 529; 17 C. 319; but see 21 C. 206. Effect. 86 C. 372; 89 C. 439. Conclusive evidence of fraud unless explained. 9 C. 63; Id., 134; Id., 216; 16 C. 505. Right of creditors to attach. 74 C. 146. Law of conditional sales. 70 C. 505; 77 C. 38; 101 C. 565. Chattel mortgage. 72 C. 510; 77 C. 370; 101 C. 565. Mere words, or acts not constituting taking possession, held insufficient. 86 C. 372; 89 C. 439. Bill of sale and conditional bill of sale back, with possession in original seller, where transaction was solely to give security to conditional vendor is fraudulent as to creditors; right to attach. 101 C. 565.
Who may take advantage of fraudulent conveyance. It is good between the parties. 52 C. 371; 68 C. 588; 76 C. 199; 78 C. 416; see 79 C. 18; grantor is at mercy of grantee. 47 C. 235; 53 C. 324; 117 C. 289. Only party injured can object; 78 C. 416; that is, the creditors; 1 R. 489; 10 C. 69; or those who represent them; 67 C. 376; as assignee in insolvency; 49 C. 213; or trustee in insolvency; 75 C. 635; 78 C. 679; or administrator of insolvent estate; 67 C. 456. Rights of creditors where representative fails to act. 49 C. 214; 71 C. 80. Creditors can proceed only by legal process; 17 C. 492; and may be estopped by participation; 52 C. 364; and are only entitled to relief so far as necessary to protect them. 79 C. 284. Creditor must show himself entitled to relief. 67 C. 372; 68 C. 580; 81 C. 626. If conveyance is made with intent to defraud one creditor, it is voidable as to all; 50 C. 31; 52 C. 441; 131 C. 95; but is voidable, not void. 67 C. 372. Grantee can acquire no title by possession against creditors; 4 D. 284; but his title is good against an invalid attachment. 62 C. 24. Sale, if voidable, is so in toto; 39 C. 37; but judgment may be sustained in part. 15 C. 504. Ordinarily only existing creditor can object; 75 C. 41; 101 C. 697; but conveyance may be in fraud of future creditors; 81 C. 626; so, where there is an unbroken continuation of debtor's insolvency. 101 C. 699. Right of town to conveyance may be in fraud of future creditors. 81 C. 626. Right of town to attack conveyance by husband which throws wife on it for support. 84 C. 678. Equity will not set aside fraudulent contract at suit of one of the fraudulent parties. 117 C. 296. Tort claimant is not a creditor within the fraudulent conveyance statute until claim has been liquidated by a judgment. 142 C. 320.
Cited. 3 CA 522. Cited. 4 CA 33. Cited. 10 CA 271. Cited. 18 CA 265. Cited. 23 CA 287.
Conveyance of survivorship interest in home to second wife in order to avoid debt accruing to first wife under a separation agreement, held to be a fraudulent conveyance. 21 CS 291. Cited. 31 CS 154. Cited. 32 CS 7. Only parties who have reduced their claims to judgment are creditors under statute; no express statute of limitations applicable to fraudulent conveyances. 36 CS 277. Cited. 37 CS 648.
