Forrest Laidley and George P. Vye v. Barbara Bogart Heigho, Maxwell Stevens Heigho and Security-First National Bank

MERRILL, Circuit Judge:

By this diversity action, brought in the district court in Los Angeles, California, appellants allege that in 1950 their assignors became creditors of William Stevens Heigho, who died in 1956, and they seek to collect the debt out of assets of a trust created by the decedent in 1951. Appellants contend that the creation of the trust, because it rendered Heigho insolvent, constituted a transfer in fraud of creditors under California Civil Code, § 3439.04. 1 The action was dismissed by the district court and this appeal followed.

Appellants never did reduce their claim…