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James H. Rice Co. v. McJohn

Illinois Supreme Court

244 Ill. 264 (1910)

Facts

Joseph McJohn (defendant) owed money to James H. Rice Co. (Rice) (plaintiff). Rice sued and obtained a judgment in the amount of $1801.60 against McJohn on September 17, 1902. Before the judgment was issued, on August 7, 1902, McJohn transferred his only property, a piece of real estate with a three-story brick building on it, to Edward McJohn (Edward). The conveyance purported that the sale was for $1, but no consideration was paid. Rather Edward held the property in trust for McJohn, so that McJohn could avoid Rice’s judgment. McJohn failed to satisfy the judgment, despite the sheriff’s requests, and Rice sued McJohn and Edward and requested that the conveyance be set aside as fraudulent.

Rule of Law

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Issue

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Holding and Reasoning

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