Plaintiffs filed an appeal dismissing their claim under the NJ Uniform Fraudulent Transfer Act
Facts of the Case
The evidence of an alleged fraudulent transfer as presented to the jury by the plaintiffs was sparse. In summary, plaintiffs rented an apartment in a house owned by defendant. Because this apartment was infested with bedbugs, they moved out. Before they moved out, plaintiffs threatened to sue the defendant for damages caused by the bedbugs. About six months after plaintiffs moved out, defendant transferred the title of the property to his brother for $100.00.
However, plaintiffs did not file their lawsuit until over one year later.
Evidence at Trial Was Weak
Plaintiffs did not present expert testimony from a real estate appraiser or any other legally competent evidence of the value of the house, in order to show that it was transferred to a family member for less than its fair value. N.J.S.A. 25:2-25(b). There was no evidence of the condition of the house or the amount, if any, of the equity in the property prior to the transfer. Nor did plaintiffs present any evidence that the house was defendants only asset, that he absconded, or that he rendered himself judgment-proof by transferring the house. The transfer occurred six months after plaintiffs moved out of the house and more than a year before plaintiffs filed their lawsuit.
A claim of a fraudulent transfer must be proven by clear and convincing evidence. Even viewed in the most favorable light, the evidence plaintiffs presented did not come close to satisfying that high standard the Appellate Court ruled.
To discuss your NJ Fraudulent Transfer matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com. Please ask us about our video conferencing consultations if you are unable to come to our office.
By Fredrick P. Niemann, Esq. of Hanlon, Niemann & Wright, a Freehold Township, Monmouth County, NJ Fraudulent Transfer Law Attorney