Blogs

Posts Categorized: Fraudulent Conveyance

Posted: June 5, 2021

Brokers Not Transferees for Purposes of Fraudulent Conveyance Claim

On June 1, 2021, the First Department issued a decision in McCormack Family Charitable Found. v. Fidelity Brokerage Servs., LLC, 2021 NY Slip Op. 03414, holding that brokers were not transferees for purposes of a fraudulent conveyance claim, explaining: The brokers were not transferees as contemplated by Debtor and Creditor Law § 276. A defendant... Read more »

Posted: April 5, 2021

To be Liable For a Fraudulent Transfer, the Defendant Must Have Been a Transferee or Otherwise Benefited From the Transfer

On March 25, 2021, the First Department issued a decision in Ninth Space LLC v. Goldman, 2021 NY Slip Op. 01853, holding that to be liable for a fraudulent transfer, a defendant must have been a transferee or otherwise benefitted from the transfer, explaining: The amended complaint is defective because it merely alleges that the... Read more »

Posted: March 14, 2021

Court’s Analysis of Debtor and Creditor Law Claims Illustrates Differences Between Various DCL Claims

On February 25, 2021, Justice Sherwood of the New York County Commercial Division issued a decision in Singind Life Sciences (HK) Ltd. v. Versailles Indus. LLC, 2021 NY Slip Op. 30584(U), analyzing various Debtor and Creditor Law claims: First, plaintiffs’ constructive fraud claim under NYDCL § 273 cannot be dismissed. To allege a constructive fraud... Read more »

Posted: March 4, 2020

Claim for Contrauctive Fraudulent Conveyance Does not Require Allegations of Scienter

On February 18, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Acacia Invs., B.S.C.(C) v. West End Equity I, Ltd., 2020 NY Slip Op. 50222(U), holding that a claim for constructive fraudulent conveyance does not require allegations of scienter, explaining: Acacia also maintains that the Complaint fails to state... Read more »

Posted: November 1, 2019

Fraudulent Conveyance Claims Dismissed for Insufficient Allegations of Fraud

On October 21, 2019, Justice Borrok of the New York County Commercial Division issued a decision in Lynx Capital Partners of NJ, LLC v. Bardown Capital LLC, 2019 NY Slip Op. 33134(U), dismissing fraudulent conveyance claims for insufficient allegations of fraud, explaining: Under Debtor & Creditor Law § 273, a plaintiff should plead that (1)... Read more »

Posted: October 29, 2019

Court Rejects Claim for Aiding and Abetting Fraudulent Conveyance

On October 17, 2019, Justice Schecter of the New York County Commercial Division issued a decision in Stillwater Liquidating LLC v. CL Recovery Trading Fund III, L.P., 2019 NY Slip Op. 33108(U), rejecting a claim for aiding and abetting a fraudulent conveyance, explaining: DCL claims are only properly asserted against the transferor and transferee. Based... Read more »

Posted: October 20, 2018

Allegation that Defendant Rendered New York Business Insolvent Through Fraudulent Transfer Sufficient to Establish Personal Jurisdiction

On October 2, 2018, Justice Scarpulla of the New York County Commercial Division issued a decision in Ezra v. Wilton Group Inc., 2018 NY Slip Op. 32491(U), holding that the allegation that a defendant rendered a New York business insolvent through a fraudulent transfer was sufficient to establish personal jurisdiction over the defendant, explaining: On a... Read more »

Posted: June 25, 2018

Insolvent Party’s Transfer of Property to Insider Not Improper Where Insider is Secured Creditor

On June 19, 2018, Justice Schecter of the New York County Commercial Division issued a decision in Englander Capital Corp. v. Zises, 2018 NY Slip Op. 28185, holding that an insolvent party’s transfer of property to an insider was not a fraudulent conveyance because the insider was a secured party, explaining, New York’s Debtor and... Read more »

Posted: April 18, 2018

Fraudulent Conveyance Claim Dismissed For Failure to Plead with Particularity

On April 10, 2018, the First Department issued a decision in Carlyle, LLC v. Quik Park 1633 Garage LLC, 2018 NY Slip Op. 02436, dismissing a fraudulent conveyance claim for failure to plead the claim with particularity, explaining: The actual fraudulent conveyance claims, under the common law and Debtor and Creditor Law (DCL) § 276,... Read more »