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Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts
Posted: May 31, 2015

Court Awards Attorneys’ Fees on Fraudulent Conveyance Claim

On May 21, 2015, Justice Demarest of the Kings County Commercial Division issued a decision in Ohana v. Levy, 2015 NY Slip Op. 30877(U), awarding attorneys fees on a claim for fraudulent conveyance.

In Ohana, the plaintiffs brought a fraudulent conveyance action against both the defendant in an earlier action against whom the plaintiffs had obtained a judgment and the recipients of property transferred to them by that defendant. Not only did the court grant the plaintiffs summary judgment, it awarded them attorney’s fees, explaining that, given that there was no material question of fact that “clear and convincing evidence” of the defendants’ “actual intent to defraud” in transferring the property to avoid creditors existed, the “plaintiffs are entitled to an award of their reasonable attorney’s fees pursuant to Debtor and Creditor Law S 276-a.”

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