A court of appeals in Dallas, Texas recently upheld the summary judgment of the trial court in a case involving allegations of fraudulent transfer into a trust. The case offers an interesting example at the intersection of courts and the fiduciary field.
Fraudulent Transfer of Business Interests?
In the case of Austin v. Mitchell, a wife filed a suit against her ex-husband. The allegation? That he fraudulently transferred some of his limited partnership interest from a family limited partnership to a trust established for the benefit of his children. Law Professor provides this summary of the judgment and appeal:
The trial court granted summary judgment in favor of the husband and the wife appealed. The court of appeals first addressed the husband’s statute of repose defense. The wife claimed the husband’s transfer was fraudulent because it was made: without fair consideration, and the husband was left insolvent as a result; with actual intent to hinder, delay, or defraud the wife; or without receiving reasonably equivalent value at a time when the husband believed or should have believed his debt to the wife was beyond his ability to pay as payments became due.
The court affirmed the summary judgment after it found that the evidence showed the wife should have known of the transfer more than four years before the suit due to the husband’s testimony in a deposition, in which the Wife’s attorney was present.
Although the wife argued she had standing, the court disagreed, stating that the wife did not have sufficient connection to the trust.
Frequently Needed: Appeal Bonds
It’s worth knowing that when there are grounds for appeal, courts frequently require the procurement of an appeal bond, which in some states is called a supersedeas bond. An appeal bond is a type of surety bond—it acts as a guarantee that the initial judgment will be honored if the appeal ultimately fails. Bonds can also help keep frivolous cases from clogging our systems.
When a court requires an appeal bond, it must be secured promptly and filed quickly to comply with the timeline set by the court. As a leading, national provider of court and fiduciary bonds, Colonial Surety Company can help.
Uniquely, Colonial offers direct and digital service. At Colonial, the steps to securing an appeal or supersedeas bond are: get a quote online; fill out the information; satisfy underwriting requirements; and enter a payment method. Once approved, you can print or e-file the bond right from court, your office—or anywhere. It’s that simple.
Obtain an Appeal or Supersedeas Bond Here.
Litigator? Efficiency is Appealing, Right?
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