Tuesday, December 31, 2013

Sawada v. Endo case brief

Sawada v. Endo case brief summary
561 P.2d 1291 (Haw. 1977)

CASE SYNOPSIS
Plaintiff appealed from an order of the First Circuit Court (Hawaii), which had entered a judgment in favor of (Ds) in plaintiff judgment holder's action that sought to set aside a conveyance of real property as fraudulent.

CASE FACTS
Plaintiff judgment holders filed a complaint to set aside a real property conveyance from (D) judgment debtor on the ground that the conveyance was fraudulent.
The trial court refused to set aside this conveyance.

HOLDING
A tenancy by the entirety can not be used as a device to defraud existing creditors.

DISCUSSION

  • The debt had arisen subsequent to the creation of the estate, and (Ps') notice of the characteristics of the estate had limited their right to reach the property. 
  • Neither (D), husband or wife, had a separate divisible interest in the property held by the entirety that could be conveyed or that could be reached by execution.
CONCLUSION
The judgment that refused to set aside a conveyance of real property as fraudulent was upheld, because neither the defendant, husband or wife, had a separate divisible interest in the property held by the entirety that was able to be conveyed or reached by execution.

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