Fringer v. Kersey Homes, Inc.
The case is about a fraudulent transfer between insiders in order to avoid a judgment. The Fringers (our clients) obtained a judgment against Kersey Homes, Inc. a modular homes dealer. Prior to the judgment, Kersey Homes relocated its only remaining asset, a modular home, and placed it on a permanent foundation on a lot owned by another company which was owned by the same family. The Court of Chancery found that Kersey Homes, Inc., and the other recipient company, Living Enterprises, LLC, had engaged in a fraudulent transfer in violation of the Delaware Fraudulent Conveyance Act. The Court authorized the sale of the modular home so the judgment could be paid.
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