Commercial Division Blog
Court Grants Fraudulent Conveyance Claim, Attorneys' Fees, on Summary Judgment
On April 13, 2016, Justice Kornreich of the New York County Commercial Division issued a decision in Eastern Consolidated Properties, Inc. v. Lynbrook Sunrise Realty LLC, 2016 NY Slip Op. 30711(U), granting a fraudulent conveyance claim and attorneys' fees on summary judgment, explaining:
[The plaintiff] made the requisite prima facie showing. ECP submitted proof that the subject transfers violate DCL § 273 (constructive fraudulent conveyance) because they were made without any consideration to [the judgment debtor] and rendered it insolvent. Moreover, [the non-party who controlled the judgment debtor] was on both sides of the transactions, which were accompanied by myriad badges of fraud, rendering the transfers intentionally fraudulent under DCL § 276. Defendants' failure to oppose ECP's summary judgment motion constitutes an admission of all material facts and a failure to meet its burden shifting obligations. Finally, since [the plaintiff] prevails on its claim under DCL § 276, [it] also is entitled to its reasonable attorneys' fees under DCL § 276-a.
(Internal quotations and citations omitted).