In Kauffman-Harmon v. Kauffman, when Mr. Kauffman sued his children to have all stock given to them transferred back to him, claiming their possession was only a temporary trust, the court found that
A. a temporary trust had indeed been created and Mr. Kauffman was the equitable owner of the stock.
B. Mr. Kauffman was the equitable owner of the stock because the children had participated in a fraud when accepting ownership of the stock.
C. the children owned the stock because Mr. Kauffman's request for the return of the stock and the subsequent lawsuit came after the statute of limitations had run, so he was barred from recovery.
D. the children owned the stock and Mr. Kauffman's claims were barred by the clean hands doctrine.
Answer:D
In Kauffman-Harmon v. Kauffman, when Mr. Kauffman sued his children to have all stock given to them transferred back to him, claiming their possession was only a temporary trust, the court found that
A. a temporary trust had indeed been created and Mr. Kauffman was the equitable owner of the stock. B. Mr. Kauffman was the equitable owner of the stock because the children had participated in a fraud when accepting ownership of the stock. C. the children owned the stock because Mr. Kauffman's request for the return of the stock and the subsequent lawsuit came after the statute of limitations had run, so he was barred from recovery. D. the children owned the stock and Mr. Kauffman's claims were barred by the clean hands doctrine.
Explanation: A) Kauffman tried to shield assets from creditors and did not exhibit "clean hands."