DZ Bank AG Deutsche Zentral-Genossenschaft Bank v. Meyer

DZ Bank filed an adversary action against the Meyers in bankruptcy court, alleging that the Meyers had fraudulently transferred assets in order to place them out of the bank's reach. The Ninth Circuit reversed the district court's decision affirming the bankruptcy court's judgment in favor of the bank. The panel held that, although the bankruptcy court correctly found that the Meyers engaged in fraudulent transfers under the Washington Uniform Fraudulent Transfer Act and thus committed fraud to the bank's detriment, the bankruptcy court erred by limiting relief to the amount of the collateralized debt. The panel explained that the bankruptcy court should have granted relief for the full $385,000 that the bank would have recovered. View "DZ Bank AG Deutsche Zentral-Genossenschaft Bank v. Meyer" on Justia Law