Extended Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt
Search in comments
Filter by Custom Post Type
Extended Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt
Search in comments
Filter by Custom Post Type

Laco X-Ray Systems, Inc. v. Fingerhut – Case Brief Summary (New York)

In Laco X-Ray Systems, Inc. v. Fingerhut (88 AD2d 425, 453 N.Y.S.2d 757 [2d Dept 1982]), the challenged transfer was between two entities controlled by the same principal, with the transferee assuming the transferor's debt, the court found that the transfer was a fraudulent conveyance:

"In essence, the transfer of debits, credits and assets between the two nominal business entities controlled by the same principal constituted at the most mere paper transactions and bookkeeping entries in an intra-organizational structure. In no way did they result from arm's length negotiations between parties having diverse interests and goals. Succinctly stated, the assets of the transferor were conveyed in such a manner that its principals . . . became preferred creditors to the detriment of the creditors such as plaintiff" (Id. at 432-433).