District Court Rejects Claims of Actual Fraudulent Conveyance Creates Dueling Tests in SDNY

January 11, 2017

In a recent decision in the Tribune fraudulent conveyance litigation in the Southern District of New York, the court dismissed claims of actual fraudulent conveyance, holding that an officer’s intent could not be imputed to the company where he did not control the challenged transaction.

The holding creates a split among Southern District authorities over the appropriate test for determining when an individual’s intent can be imputed to a company to prove an actual fraudulent conveyance.