First National Bank in Fairfield v. Frescoln Farms, Ltd.

LAVORATO, Justice.

The dispute in this case arose after Merrill R. Frescoln conveyed his unencumbered farmland to a family corporation in return for stock and then gave the stock to two of his three sons. At about the same time these transfers were taking place, Merrill failed to repay an unsecured debt to the First National Bank in Fairfield. The bank obtained a judgment against him, which he was also unable to pay. The issue we must decide is whether the corporate stock can be used to satisfy the judgment against Merrill. The district court said it could, and we agree.

I. Background Facts and…