Acli Government Securities, Inc. v. Rhoades

653 F. Supp. 1388 (1987)

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Nature of the Case

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Facts

On June 30, 1959, D and Norma Rhoades (brother and sister) became the owners of the property which is the subject of this suit, consisting of 68 acres of land. They were tenants-in-common with P having an undivided three-fifths and Norma having an undivided two-fifths. As of May 1983, the property was appraised to have a value of $325,000. P is a government securities trader. D and Norma Rhoades are attorneys licensed to practice in New York. On May 10, 1983, the jury in P securities action returned a verdict against D for $1,519,898.59, of which $1,385,401.06 plus post-judgment interest remains outstanding and unpaid. On May 19, 1983, the day before the judgment against D was signed, D executed a deed that conveyed the property to Norma Rhoades, for $1.00 and unspecified 'other good consideration.' P sued D to declare the transfer void. P argues that the conveyance is fraudulent because the conveyance was made without fair consideration by D in a lawsuit who failed to satisfy a final judgment against him. D contends that the conveyance of property was a valid transfer, grounded upon the consideration of an antecedent debt owed by D to Ms. Rhoades, that the conveyance did not render D insolvent and that it was not made with intent to defraud.