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Fraudulent Transfer Act is a Statute of Repose in California

| Apr 16, 2018 | Uncategorized |

In PGA West Residential Assoc., Inc. v. Hulven International, Inc., 14 Cal.App.5th 156 (2017), the California Court of Appeal reversed the Riverside County Superior Court and held that the California Uniform Fraudulent Transfer Act is a statute of repose (meaning that the time to file runs from the occurrence of some event other than the injury which gave rise to the claim). As such, if no action is brought within 7 years of the transfer, the transferee/transfer is entirely insulated. The Court held that to be true even in Hulven where the transfer at issue was the recording of a deed of trust in favor of the Debtor’s corporation that had not been formed and did not exist at the time.

For the full opinion, click here.

If you have any questions, please contact Melissa Lowe or any of the other attorneys at Shulman Bastian Friedman & Bui LLP at 949.340.3400.

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