Crescent Canal Co. v. Montgomery

In Crescent Canal Co. v. Montgomery (1899) 124 Cal. 134, the defendants conveyed the property involved in the action to a person named James and then stipulated to the entry of judgment in the plaintiff's favor. The court said: "It is too plain to be questioned that the nominal defendants at the time the stipulation was filed knew that the real party defendant was the appellant James, and that they had parted with what interest they might have had. As to them, therefore, it was clearly a fraud upon the appellant to sign the stipulation and have judgment entered thereon. 'When a judgment or decree of any court, whether inferior or superior, has been obtained by fraud, the fraud is regarded as perpetrated upon the court as well as upon the injured party. . . . The equitable jurisdiction to cancel and set aside or to restrain judgments and decrees of any court obtained by a fraud practiced upon the court and the losing party, is well settled and familiar.' " (Id. at p. 144.)