Fraudulent Transfer as a Tort

68 Pages Posted: 29 Mar 2021 Last revised: 3 Jun 2021

See all articles by David Gray Carlson

David Gray Carlson

Yeshiva University - Benjamin N. Cardozo School of Law

Date Written: March 26, 2021

Abstract

Fraudulent transfer law has historically been an in rem right of a creditor to the property fraudulently received by a third party. In a minority of states, courts have treated fraudulent transfers as creating in personam liability of the transferring debtor, the recipient and any other third party who "conspired" with the transferor to achieve the transfer. This article examines the wisdom of this modern trend and finds it wanting. The United States Supreme Court in 1861 was correct: fraudulent transfers are not wrongs. They merely created in rem rights.

Suggested Citation

Carlson, David Gray, Fraudulent Transfer as a Tort (March 26, 2021). Michigan State Law Review, Vol. 2022, Cardozo Legal Studies Research Paper No. 638, Available at SSRN: https://ssrn.com/abstract=3813503

David Gray Carlson (Contact Author)

Yeshiva University - Benjamin N. Cardozo School of Law ( email )

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