Robertson v. Hyde

In Robertson v. Hyde (1943) 58 Cal. App. 2d 667, buyers sought to cancel a promissory note secured by a deed of trust to certain property, recover payments made on the note, and keep the property. The seller, a senior citizen, had illegally transferred the note and the deed of trust to her son in order to qualify for means-tested pension benefits from the state. ( Id. at p. 668.) The court enforced the illegal transfer, refusing to grant the requested relief because doing so would "defeat the very purpose of the statute" by leaving the state with no property in which it might retain an interest "for the reimbursement of amounts of which it has been defrauded." ( Id. at p. 671.)