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 »
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Posts Categorized: Fraudulent Conveyance
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 »
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 »
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 »
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 »
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 »
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