Are you suing a trustee in West Palm Beach for breach of fiduciary duty? What happens if the trustee has transferred all of their assets? Do you know how to prevent a fraudulent transfer of assets? Check out what happened in a recent case out of the Fourth District Court of Appeals.
Fraudulent Transfer of Assets
- Any experienced Palm Beach probate litigator can tell you that once and a while you get a dishonest defendant who engages in a fraudulent transfer of assets.
- What does that mean?
- When you initiate a lawsuit against an individual for the most part that individual’s life does not change that much, they are just being sued.
- They can walk to the bank and withdraw all their money and give it to their nephew in Pompano Beach.
- Maybe they will deed their West Palm Beach house to a relative as well.
- Now you go and get a hefty judgment in a West Palm Beach probate case but how can you satisfy that judgment?!
- The person has no assets!
- Florida provides a way to undo some of these transfers.
- Have you read Fla. Stat. 726?
- Does your judgment qualify you as a creditor under the statute?
Yaralli v. ARC LLC
- The Fourth District Court of Appeals decided the case of Yaralli v. ARC LLC on May 27, 2015.
- The case was an appeal from a several count complaint that centered on a former business’ assets.
- A plaintiff also claimed that whatever assets existed by the time the suit had been filed had been fraudulently transferred.
- It may surprise you to hear that a court is willing to take a house or other large assets away from a future purchaser who bought something in good faith to satisfy the statute.
- Sometimes though, this will be the court’s only option to satisfy justice.
- Do you know how to avoid all of these issues?
- Can you have a defendant post a bond?
Want to learn more?
Check out the entire case by clicking here.