Chambers v. Hot Lake Sanatorium

This is a suit to foreclose a mortgage given by the Hot Lake Sanatorium, a private corporation, to plaintiff on April 20, 1927, to secure a loan of $60,000. The suit was instituted on October 3, 1933. On December 14, 1933, the company was adjudged a bankrupt and Harry McKinlay, who was appointed as trustee of the bankrupt’s estate, was joined as a defendant in the suit. He answered, setting up that the mortgage was void as a fraudulent conveyance. At the end of the trial, a decree was entered which, although awarding a judgment to plaintiff for the amount claimed to be due under the mortgage,…