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) ยง 276,… Read more »
Blogs
Posts Categorized: Fraudulent Conveyance
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 »
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… Read more »
Insider Payment Not In Good Faith Under Debtor and Creditor Law Sections 273 and 275
On January 12, 2016, the First Department issued a decision in American Media, Inc. v. Bainbridge & Knight Laboratories, LLC, 2016 NY Slip Op. 00096, holding that an insider payment is not a payment made in good faith for purposes of Debtor and Creditor Law Sections 273 and 275. In American Media, the motion court… Read more »
Receipt of Salary from Transferee Insufficient to Render Defendant a Transferee
On October 1, 2015, the First Department issued a decision in Cantor Fitzgerald & Co. v. 8an Capital Partners Master Fund, L.P., 2015 NY Slip Op. 07046, holding that a corporate officer could not be deemed a recipient or beneficiary of a fraudulent transfer merely because he received a salary from the corporate transferee. In… Read more »
Debtor’s Transfer of Good Will To Newly-Formed Entity is Fraudulent Conveyance
On August 4, 2015, Justice Emerson of the Suffolk County Commercial Division issued a decision in All County Paving Corp. v. Darren Constr., Inc., 2015 NY Slip Op. 51144(U), granting summary judgment to the plaintiff on a fraudulent conveyance claim based on a judgment debtor’s transfer of the good will of its business to a… Read more »
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… Read more »