Committee of Unsecured Creditors of Interstate Cigar Co., Inc. v. Interstate Distribution, Inc

In Committee of Unsecured Creditors of Interstate Cigar Co., Inc. v. Interstate Distribution, Inc., 210 A.D.2d 283, 620 N.Y.S.2d 78 (2d Dept. 1994), the Second Department held as follows: When a conveyance is fraudulent as to a creditor, that creditor may have the conveyance set aside or disregard the conveyance and attach or levy execution upon the property conveyed (see, Debtor and Creditor Law 278, 279). These sections of the Debtor and Creditor Law did not, either explicitly or implicitly, create a creditor's remedy for money damages against parties who were neither transferees of the assets nor beneficiaries of the conveyance. (210 A.D.2d at 285.) Applying these principles, the Second Department, inter alia, affirmed the trial court's dismissal of the cause of action to set aside a transfer as fraudulent, as asserted against the individual appellants-respondents who were shareholders, officers and members of the board of directors of the transferor company. Id.