Anderson v. Architectural Glass Construction

Debtor transferred her interest in real property to AGC, a corporation wholly owned by her husband. Seven months later, debtor declared bankruptcy and the bankruptcy court concluded that the conveyance was constructively fraudulent. The bankruptcy court found AGC did not prove by clear and convincing evidence that it paid for the property or intended to pay for it on the date of the property's purchase. The bankruptcy court also found that, at the time of the purchase, the parties intended that AGC would serve as the property's tenant, not the property's owner. AGC also did not prove that it intended to own the property on the date of acquisition. Therefore, the bankruptcy court found no justification for a resulting trust. The district court found no fault in the bankruptcy court's findings of fact, but nonetheless reversed. The court reversed the district court insofar as it found a resulting trust to sever debtor's legal and equitable interests in the property. Accordingly, the court vacated the judgment of the district court and remanded for further proceedings.View "Anderson v. Architectural Glass Construction" on Justia Law