FRAUDULENT CONVEYANCES Nassau Academy of Law CLE Live ...

Page 1991 F.2d 31(Cite as: 991 F.2d 31)Westlaw Delivery Summary Report for DANIELS,JEFFREYDate/Time of Request:Wednesday, October 21, 2009 18:32 EasternClient Identifier:NALDatabase:FEDFINDCitation Text: 991 F.2d 31Lines: 398Documents: 1Images: 0The material accompanying this summary is subject to copyright. Usage is governed by contract with ThomsonReuters, West and their affiliates.United States Court of Appeals,Second Circuit.Ashley S. ORR, Receiver of American Partners, Inc.,Plaintiff-Appellee-Cross-Appellant,v.KINDERHILL CORPORATION; Thomas A. Martin;Kinderhill Investment Company; Virginia S.Martin and Vincent Teahan, as Trustee of a ThomasA. Martin Trust, Defendants,Key Bank of Eastern New York, Defendant-Appellant-Cross-Appellee.Nos. 864, 1015, Dockets 92-9108, 92-9164.Argued Jan. 28, 1993.Decided March 16, 1993.Corporation's judgment creditor brought action to setaside fraudulent conveyance against corporation, itssubsidiary, and related parties, and bank which heldmortgage on property conveyed to subsidiary by corporation.The United States District Court for theNorthern District of New York, Con. G. Cholakis, J.,entered partial summary judgments for bank andcreditor, and both appealed. The Court of Appeals,McLaughlin, Circuit Judge, held that, under NewYork law: (1) three-year statute of limitations foractions on liabilities created by statute did not applyto action to set aside fraudulent conveyance; (2) sixyearcatch-all statute of limitations applied; and (3)transfer of property to subsidiary as part of restructuringplan was not supported by fair consideration.Affirmed.West Headnotes[1] Fraudulent Conveyances 186 248186 Fraudulent Conveyances186III Remedies of Creditors and Purchasers186III(F) Time to Sue186k248 k. Time to Sue and Limitations.Most Cited CasesUnder New York law, three-year limitations periodgoverning actions on liability created by statute doesnot apply to action by judgment creditor to set asidefraudulent conveyance, even though statute governssuch actions; statute governing fraudulent conveyancedid not create new liability not available undercommon law, but, rather, simply fleshed out meaningof fraudulent conveyance by stigmatizing certainconveyances made during litigation. N.Y.McKinney'sCPLR 214, subd. 2; N.Y.McKinney's Debtor andCreditor Law § 273-a.[2] Limitation of Actions 241 34(1)241 Limitation of Actions241I Statutes of Limitation241I(B) Limitations Applicable to ParticularActions241k34 Liabilities Created by Statute241k34(1) k. In General. Most CitedCasesUnder New York law, three-year statute of limitationsfor actions on liability created by statute appliesonly when statute creates new liability that did notexist at common law and would not exist but for stat-© 2009 Thomson Reuters. No Claim to Orig. US Gov. Works.