Thursday, December 26, 2013

Adams v. Merced Stone Co. case brief

Adams v. Merced Stone Co. case brief summary
178 P. 498 (1917)

Appellant executor of a creditor's estate sought review of the judgment from the Superior Court of Alameda County (California), which entered judgment in favor of respondent debtor, a corporation, upon its finding that the debt in question had been given by the creditor to his brother before death.

A debtor, a corporation, owed money to a creditor. The creditor told his brother that he wanted the brother to have the debt but did nothing else to effectuate the gift except to say that the brother had the means to so effectuate. The brother had such means by virtue of being the president and general manager of the debtor and sitting on its board of directors. The superior court entered judgment for defendant after finding that the creditor made a gift of the debt to his brother.


  • The court reversed the superior court's judgment and remanded the case with instructions to enter judgment in the plaintiff's favor. 
  • The court held that the purported oral gift did not comport with the requirement of Cal. Civ. Code § 1147 in that it was not sufficient that the brother had the means to effectuate the gift to himself. The means had to have been given by the creditor.
The court reversed the judgment of the superior court and remanded the case with directions to enter judgment in favor of the executor of the creditor's estate.

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