Commercial Division Blog
Plaintiff Entitled to Summary Judgment on Fraudulent Conveyance Claim
On April 15, 2015, the Second Department issued a decision in Akodes v. Pyatetsky, 2015 NY Slip Op. 03112, holding that a trial court should have granted a plaintiff summary judgment on a claim for fraudulent conveyance, explaining:
Pursuant to Debtor and Creditor Law § 274, a conveyance is fraudulent when it is made without fair consideration when the person making it is engaged or is about to engage in a business or transaction for which the property remaining in his or her hands after the conveyance is an unreasonably small capital. Here, the plaintiffs established, prima facie, that the subject conveyance was fraudulent as defined by Debtor and Creditor Law § 274. In opposition, the defendants . . . failed to raise a triable issue of fact.
(Internal quotations and citations omitted).