The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1907-09-17

The decision in the case of Troy
Laundry Machinery Co., Ltd, VS.. San
itary Steam Laundry Company and J.
Alfred Magoon is by. Justice Wilder.
1t was handed down by the Supreme
Court yesterday. In stating the case
Justice Wilder said:
This is bill in equity by judg-
ment creditor to declare fraudulent and
void and to set aside a transfer and
conveyance of property made by an
insolvent corporation to its vice-presi-
dent, general manager and director,
for discovery, and to sell the trans
ferred property and apply the proceeds
therefrom to the payment of plaintiff S
judgment and the claims of other cred
itors, subject to prior liens and equi-
ties. A demurrer to the bill having
been sustained and the bill dismissed,
plaintiff appealed to this court.
THE material allegations of the bill
are, briefly, that defendant Sanitary
Steam Laundry Co., Ltd, was on Sep
tember IL, 1908, indebted to plaintiff,
which indebtedness was reduced to
judgment on March 20, 1906, by action
instituted in April, 1905; that execu-
tons which issued on the judgment
were returned wholly unsatisfied; that
defendant corporation was the owner
of a large amount of property, includ-
ing a plant for the washing, cleaning
and ironing of clothes. lands, tene-
ments, buildings, leaseholds and live
stock; that on October 10, 1903, defend
ant corporation by its directors, and
while it was insolvent, transferred and
conveyed all of its property to de-
PENDANT Magoon, who was then it's
vice-president, general manager, prin-
cipal stockholder and one of its direc-
tors. for the purported consideration of
assuming a mortgage Indebtedness
against the company of $4,000; that
the corporation then owed defendant
Magoon something over $4,000 for rent
and advances; that this transfer and
was never recorded and
was not known to plaintiff until two
years after it was made and that it
was a secret preference in favor of
Magoon SO far as plaintiff was con-
cerned: that the property so transfer
red was of the value of 100000, al
though assessed for taxation for $780,
BOO by agreement; that after the trans
fer there was no apparent or osten-
sible change of possession of the prop
erty, and the business has been since
carried on under the name of Sanitary
Steam Laundry. The bill was de-
INJURED to on various grounds, which
in substance are % want Of equity,
(2) that Magoon paid full value for
the property, go no jurisdiction to re-
luire answers to the interrogatories |
attached to the bill, and that the inter
are impertinent, and (D |
aches"
In deciding the case Justice Wilder |
says:
1.-The interrogatories annexed to the |
pill are not impertinent and defendants |
may be required to answer same.
1T does not appear from the bill |
hat plaintiff is guilty of such laches /
Is to bar it from relief. The bill was |
lied in May. 1907. Plaintiff first knew |
If the conveyance in October, 1905, and |
1t that time it was prosecuting its |
claim at law, resulting in a judgment |
IN March 20, 1906. The return of the |
llias execution was not made until |
April 4, 1907 1t does not appear that
here has been any unreasonable delay
,r that defendants have been preju-
Iced in any way by the delay.
Accordingly the decree appealed
rom is reversed. the demurrer is over
uled and defendants may have ten
lays within which to answer"