James H. Rice Co. v. McJohn
Illinois Supreme Court
244 Ill. 264 (1910)
McJohn (defendant) owed Rice (plaintiff) money, and shortly before Rice obtained a roughly $1,801.60 judgment against him, McJohn transferred his only real property — a building — to Edward McJohn for a nominal recited price of $1, with no actual consideration paid. Edward in fact held the property in trust for McJohn so that McJohn could avoid Rice's judgment. When McJohn failed to satisfy the judgment despite the sheriff's demand, Rice sued McJohn and Edward to have the conveyance set aside as fraudulent.
Whether a property conveyance made without real consideration, held in trust for the transferor, for the purpose of shielding the property from a creditor's judgment, is a fraudulent conveyance that may be set aside.