FRAUDULENT CONVEYANCES Nassau Academy of Law CLE Live ...

780 N.Y.S.2d 409 Page 19 A.D.3d 553, 780 N.Y.S.2d 409, 2004 N.Y. Slip Op. 05710(Cite as: 9 A.D.3d 553, 780 N.Y.S.2d 409)Westlaw Delivery Summary Report for DANIELS,JEFFREYDate/Time of Request:Wednesday, October 21, 2009 18:28 EasternClient Identifier:NALDatabase:NY-CSCitation Text: 780 N.Y.S.2d 409Lines: 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, Third Department,New York.In the Matter of MEGA PERSONAL LINES, INC.,et al., Appellants,v.Dianne HALTON, Individually and as Executor ofthe Estate of Robert L. Halton,Deceased, et al., Respondents.July 1, 2004.Background: Transferee brought action seeking determinationthat funds it received from judgmentdebtor were not subject to restraint by judgmentcreditors. The Supreme Court, Saratoga County,Nolan Jr., J., entered summary judgment in favor ofjudgment creditors, and transferee appealed.Holding: The Supreme Court, Appellate Division,Rose, J., held that fact issues remained as to whethermajority shareholder of judgment debtor had controllinginterest in transferee.Reversed.West Headnotes[1] Judgment 183228k183 Most Cited CasesTrial court did not abuse its discretion in entertainingsecond summary judgment motion, where secondmotion was made after completion of discovery andturned upon issue not previously decided.[2] Fraudulent Conveyances 8186k8 Most Cited CasesIn order to establish fraudulent transfer by defendantin action for money damages, plaintiffs must provethat transferor was defendant in action for moneydamages at time of transfer, that transferor has notsatisfied resulting judgment, and transfer was madewithout fair consideration. McKinney's Debtor andCreditor Law § 273-a.[3] Fraudulent Conveyances 66186k66 Most Cited Cases[3] Fraudulent Conveyances 155186k155 Most Cited CasesGood faith of both transferor and transferee is indispensablecomponent of fair consideration in determiningwhether transfer during pendency of actionfor money damages is fraudulent conveyance.McKinney's Debtor and Creditor Law §§ 272, 273-a.[4] Corporations 548(9)101k548(9) Most Cited CasesAlthough transfer of corporate assets to insider establisheslack of good faith as matter of law, transfer ofassets must be either directly to insider or to entitycontrolled by insider. McKinney's Debtor and CreditorLaw § 272.[5] Judgment 181(31)228k181(31) Most Cited CasesGenuine issue of material fact as to whether majorityshareholder of judgment debtor had controlling interestin transferee corporation precluded summary© 2009 Thomson Reuters. No Claim to Orig. US Gov. Works.