Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Dz Bank AG Deutsche Zentral-Genossenschaft Bank v. Meyer

United States Court of Appeals, Ninth Circuit

August 24, 2017

DZ Bank AG Deutsche Zentral-Genossenschaft Bank, Frankfurt AM Main, New York Branch, Plaintiff-Appellant,
v.
Louis Phillipus Meyer; Lynn Meyer, Defendants-Appellees.

          Submitted May 19, 2017

         Appeal from the United States District Court for the Western District of Washington James L. Robart, Senior District Judge, Presiding D.C. No. 2:14-cv-00869-JLR

         COUNSEL

          D. Alexander Darcy (argued) and Michael W. Debre III, Askounis & Darcy PC, Chicago, Illinois, for Plaintiff-Appellant.

          Marc S. Stern (argued), Seattle, Washington; for Defendants-Appellees.

          Before: Michael Daly Hawkins, Ronald M. Gould, and Richard A. Paez, Circuit Judges.

         SUMMARY[*]

         Bankruptcy

         The panel reversed the district court's decision affirming the bankruptcy court's judgment in favor of a creditor in the creditor's adversary proceeding alleging that the debtors fraudulently transferred assets in order to place the assets out of the creditor's reach, and that the debt therefore was non-dischargeable under 11 U.S.C. § 523(a).

         The panel held that the bankruptcy court correctly found that, under the Washington Uniform Fraudulent Transfer Act, the debtors engaged in fraudulent transfers and, therefore, actual fraud, to the creditor's detriment. The bankruptcy court erred, however, in limiting relief to the value of the assets that were directly traceable to the creditor's security interest. The panel held that the non-dischargeable debt resulting from the fraudulent transfers was the full amount that the creditor would have recovered if it had been able to execute against the debtor's ownership interest in the closely-held corporation from which the debtor transferred the assets.

          OPINION

          PAEZ, Circuit Judge:

         This case arises from a dispute between DZ Bank AG Deutsche Zentral-Genossenschaftsbank ("DZ Bank"), as creditor, and Louis and Lynn Meyer ("the Meyers"), [1]as debtors. 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 bankruptcy court agreed, but limited the judgment to the value of the assets that were directly traceable to DZ Bank's security interest. The district court affirmed, reasoning that DZ Bank could not recover the value of the other assets because those assets were not the property of the Meyers, but rather, were the property of Louis Meyer's closely-held corporation. We have jurisdiction pursuant to 28 U.S.C. § 1291, and we reverse.

         I.

         In January 2008, Louis Meyer was the sole member and manager of Choice Cash Advance LLC ("Choice").[2] Choice purchased five insurance agencies and their books of business in a sale arranged by Brooke Credit Corporation and its associated entities (collectively, "Brooke"). As part of the purchase, Brooke loaned Choice $1, 771, 715.20. The loan itself was financed pursuant to a credit and security agreement that Brooke entered into with a third-party entity, whose agent was DZ Bank. Under the terms of that agreement, Brooke granted DZ Bank a security interest in, among other things, its right, title, and interest to the Choice loan. Choice executed a promissory note ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.