1. Would the court’s ruling be the same if the children had also participated in the transaction and were accused of wrongdoing? Why or why not?
2. Given the court’s reasoning, would the result of this case be the same if the transfer of stock was for a legitimate purpose and the only wrongdoing Kauffman had committed involved a third party in an unrelated matter? Why or why not?

Kauffman transferred all of his stock in his corporation to his spouse, who subsequently transferred the stock to their children, to avoid paying a judgment against him. Several years later, a dispute developed between the children concerning the stock and Kauffman intervened by claiming that he was the rightful owner of the stock and thus it should be transferred back to him. Kauffman alleged that the transfer of the stock was a temporary trust while the children contend the clean hands doctrine bars him from relief.

  • CreatedNovember 06, 2014
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