- Case No. 14-1257 (3d Cir. April 2, 2015) (NOT PRECEDENTIAL)
- Grant of summary judgment in favor of defendant is affirmed. Under New Jersey's Uniform Fraudulent Transfer Act (UFTA), trustee must demonstrate that debtor did not receive "reasonably equivalent value" for its payments to the defendant. Defendant had shown, without challenge, that it provided reasonably equivalent value, thereby negating an essential element of the trustee's claims, and the trustee failed to raise a factual dispute. Therefore, the trustee failed to prove an essential element of his prima facie case, warranting summary judgment in defendant's favor.
- Procedural context:
- Bankruptcy Court granted summary judgment in favor of defendant, and the district court affirmed.
- A liquidating trustee commenced an adversary proceeding against defendant to avoid and recover allegedly fraudulent transfers under the Bankruptcy Code and New Jersey's Uniform Fraudulent Transfer Act. Early in the case, defendant filed a motion for summary judgment, but withdrew the motion and agreed to a revised discovery schedule. Later, defendant changed counsel and new counsel filed a summary judgment motion on the last date possible under the scheduling order. On the night before the hearing on defendant's summary judgment motion, trustee's counsel filed "opposition" to the motion, which referred to an alleged agreement with defendant's prior counsel that material issues of fact precluded entry of summary judgment. Defendant's new counsel denied knowledge of an agreement and referred to the scheduling order. In the motion, defendant supported its assertion of reasonably equivalent value by providing the affidavit of its VP and COO explaining how the business relationship was formed and operated, the contract, billing records showing nearly 1300 hours of work billed at standard rates, and debtor's checks paying its invoices. The trustee failed to dispute defendant's factual assertions, making them deemed undisputed under Fed. R. Civ. P. 56(e)(2), and presented no evidence of his own.
- Barry (author); Rendell; Fuentes
3355 in the system
2 Being Processed