FRAUDULENT CONVEYANCES Nassau Academy of Law CLE Live ...

770 N.Y.S.2d 421 Page 12 A.D.3d 780, 770 N.Y.S.2d 421, 2003 N.Y. Slip Op. 19961(Cite as: 2 A.D.3d 780, 770 N.Y.S.2d 421)Westlaw Delivery Summary Report for DANIELS,JEFFREYDate/Time of Request:Wednesday, October 21, 2009 17:33 EasternClient Identifier:NALDatabase:NY-CSCitation Text: 770 N.Y.S.2d 421Lines: 170Documents: 1Images: 0The material accompanying this summary is subject to copyright. Usage is governed by contract with ThomsonReuters, West and their affiliates.Supreme Court, Appellate Division, Second Department,New York.GRACE PLAZA OF GREAT NECK, INC., respondent,v.Maxine HEITZLER, appellant.Dec. 29, 2003.Background: Nursing home brought action againstfamily member of resident, seeking to recover balanceallegedly due to it for resident's care based onclaim that resident's transfer of personal injury litigationproceeds to family members were fraudulentconveyances to avoid payment of debt under Debtorand Creditor Law. The Supreme Court, QueensCounty, Dye, J., denied family member's motion forsummary judgment dismissing the complaint, and sheappealed.Holdings: The Supreme Court, Appellate Division,held that:(1) resident was not insolvent within meaning ofDebtor and Creditor law, so as to support that herconveyances of portion of personal injury settlementproceeds to family members were fraudulent conveyancesmade with intent to defraud nursing home;(2) resident's transfers could not be deemed fraudulentas to creditors by having been made without consideration,so as to support nursing home's claim thatresident intended to incur debts beyond her ability topay as they matured; and(3) there was no basis to set aside resident's transfers,in absence of evidence that they were made with actualintent to hinder, delay, or defraud nursing homeas present or future creditor.Order reversed; motion granted.West Headnotes[1] Fraudulent Conveyances 57(1)186k57(1) Most Cited CasesNursing home resident was not insolvent withinmeaning of Debtor and Creditor law, so as to supportthat her conveyances of portion of personal injurysettlement proceeds to family members were fraudulentconveyances made with intent to defraud nursinghome; resident retained cash assets of over $342,700after intra-family transfers of settlement proceeds andcontinued to receive pension and social securitybenefits, and there was no evidence that resident hadoutstanding debts owed to nursing home or any othercreditor when transfers to family members weremade. McKinney's Debtor and Creditor Law §§271, subd. 1, 273.[2] Fraudulent Conveyances 58186k58 Most Cited CasesTransfers of personal injury settlement proceeds thatnursing home resident made to family members couldnot be deemed fraudulent as to creditors by havingbeen made without consideration, so as to supportnursing home's claim that resident intended to incurdebts beyond her ability to pay as they matured; therewas no evidence that resident had good indicationthat funds she retained from settlement proceedswould be insufficient to pay for nursing home careduring three-year period she would be required to© 2009 Thomson Reuters. No Claim to Orig. US Gov. Works.