Practice point: Pursuant to Debtor and Creditor Law § 276, a conveyance made and
every obligation incurred with actual intent, as distinguished from
intent presumed in law, to hinder, delay, or defraud either present or
future creditors, is fraudulent as to both present and future
creditors. As direct evidence of fraudulent intent is often
elusive, courts will consider badges of fraud, which are
circumstances that accompany fraudulent transfers so commonly that their
presence gives rise to an inference of intent.
Student note: A plaintiff that successfully
establishes actual intent to defraud is entitled to a reasonable
attorney's fee under Debtor and Creditor Law § 276-a.
Case: 5706 Fifth Ave., LLC v. Louzieh, NY Slip Op 05187 (2d Dept. 2013).
Here is the decision.
Monday's issue: Falling objects at the worksite.
