- 22 - Petitioner argues that there was no such preference because “Every creditor with non-contingent claims were [sic] paid in full.” Petitioner’s argument fails because PUFTA makes no distinction between contingent and noncontingent liabilities. Specifically, PUFTA defines “claim” as “A right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured.” 12 Pa. Cons. Stat. Ann. sec. 5101 (West 1999) (emphasis added); see id. sec. 5104, cmt. (6)(d); United States v. St. Mary, 334 F. Supp. 799, 803 (E.D. Pa. 1971) (“for the purpose of the law of fraudulent conveyances, a contingent liability has the same status as one which is fixed”); People’s Sav. & Dime Bank & Trust Co. v. Scott, 154 A. 489 (Pa. 1931); Lafayette Manor, Inc. v. Carroll, 12 Pa. D.&C.3d 139, 145 (1979). Petitioner further argues: “To successfully attack a transfer as fraudulent under the Act it is necessary that the creditors be prejudiced by the transfer, even where there is actual fraudulent intent.” Petitioner cites no authority which interprets Pennsylvania’s fraudulent conveyance law or PUFTA. In any event, the record does demonstrate that an unpaid creditor was harmed or prejudiced by the transfer. The record shows that Self Oil preferred the unsecured obligations owed to Mr. Self, Sr., rather than those owed to the contingent creditors. Mr.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011