Sparkman And Mclean Co. V. Derber

This action was commenced by the plaintiff, Sparkman and McLean Company, to foreclose its mortgage on real property in Jefferson County, Washington, which will be referred to as the Port Townsend Plaza. The record title to that property was in the defendant, Harold Derber, as trustee for Universal Mercury Limited. Several additional defendants, including appellant, A. M. Schwitalla, and Ernest Jonson, receiver for Balanced Investments Corporation (BIC), claimed mortgage interests in the property. The receiver for BIC cross claimed against the defendant, Harold Derber, alleging that a conveyance on June 12, 1967 from BIC to Derber of the Port Townsend Plaza was a fraudulent conveyance. On June 12, the BIC officers disposed of the Port Townsend Plaza to a non-existent corporation called Universal Mercury Limited, which for all intents and purposes was Harold Derber.