Self Heating and Cooling, Inc., Transferee - Page 13

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          “[T]he existence of actual intent is a question of fact”.  United           
          States v. Tabor Court Realty Corp., 803 F.2d 1288, 1304 (3d Cir.            
               Respondent concedes that Self Oil’s asset transfer did not             
          hinder, delay, or defraud his assessment and collection of income           
          tax liabilities.  As respondent aptly explains, the income tax              
          liability at issue is attributable to the sale of Self Oil’s                
          assets; the income tax liability could not have existed at the              
          time of the transfer.  Indeed, respondent contends that Self                
          Oil’s desire to frustrate the collection of other creditors,                
          namely, the States of Ohio and Pennsylvania, is a sufficient                
          justification to deem the transfer fraudulent under PUFTA.  We              
          agree.  The Court of Appeals for the Third Circuit has recently             
          stated:  “PUFTA does not require proof to set aside a transfer              
          that the debtor intended to defraud the specific creditor                   
          bringing the fraudulent transfer claim.  PUFTA deems a transfer             
          fraudulent if the debtor had the ‘actual intent to hinder, delay            
          or defraud any creditor’”.  718 Arch St. Associates v. Blatstein,           
          192 F.3d 88, 97 (3d Cir. 1999); see Walsh v. Gutshall (In re                
          Walter), 261 Bankr. 139, 142-143 (Bankr. W.D. Pa. 2001) (“It is             
          not necessary that debtor have intended to hinder all of his                
          creditors for � 5104(a)(1) to apply; it is sufficient that he               
          intended to hinder, delay or defraud ‘any creditor’.”).                     

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Last modified: May 25, 2011