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 »
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Posts Categorized: Fraudulent Conveyance
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 »
Lack of Particularity Dooms Fraudulent Conveyance Claim
On October 8, 2019, Justice Borrok of the New York County Commercial Division issued a decision in Getintent USA, Inc. v. Sileo, LLC, 2019 NY Slip Op. 33014(U), dismissing a fraudulent conveyance claim for failure to plead the facts relating to the claim with particularity, explaining: Finally, to state a cause of action for fraudulent... Read more »
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 »
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 »
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 »
Allegations of Badges of Fraud Sufficient to Support Actual Fraudulent Conveyance Claim
On December 14, 2017, Justice Scarpulla of the New York County Commercial Division issued a decision in Capital One Equipment Finance Corp. v. Corrigan, 2017 NY Slip Op. 32632(U), holding that allegations of badges of fraud are sufficient to support a claim for actual fraudulent conveyance, explaining: Capital One also sufficiently states a claim against... Read more »
Conveyances Fraudulent Under Debtor Creditor Law
On December 22, 2016, Justice Kornreich of the New York County Commercial Division issued a decision in Wimbledon Financing Master Fund, Ltd. v. Wimbledon Fund, SPC, 2016 NY Slip Op. 32556(U), granting summary judgment on fraudulent conveyance claims, explaining: In applying this summary judgment burden shifting standard to proceedings under the DCL, New York courts... Read more »
Fraudulent Conveyance Claim Against Arm’s Length Transaction OK Where Badges of Fraud Alleged
On September 8, 2016, the First Department issued a decision in 172 Van Duzer Realty Corp. v. 878 Education, LLC, 2016 NY Slip Op. 05957, holding that a plaintiff stated a claim for fraudulent conveyance despite that the complained of transaction was at arm’s length, explaining: The cause of action for actual fraudulent conveyance under... Read more »
Tax Estoppel Prevents Claim That Payment Was Earnings After Reporting it as a Gift
On July 7, 2016, Justice Singh of the New York County Commercial Division issued an opinion in Gliklad v. Kessler, 2016 NY Slip Op. 31301(U), holding that the doctrine of tax estoppel barred an argument that a payment was not a gift, explaining: The Court of Appeals explained the concept of tax estoppel, which is... Read more »