FOURTH D I VI SI ON

BA RNES, P. J.

, RA Y and M CM I LLI A N, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

http://w w w .ga a ppe a l s .us /r ule s

M ar ch 28, 2016



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 5 A2 31 3 . M E RRILL RANCH PROPERTIES, LLC v . AUSTELL et al

.

M C M ILLI A N , J u dg e.

A p p el l an t M erri l l Ran ch Pro p ert i es

, L LC (“ Pl ai n t i ff” o r “ Ap p el l an t ”) b ro u g ht

s u i t 1 ag ai n s t ap p el l ees 2 s eek i n g

, am o n g o t her t h i n g s

, to s et as i de cert ai n t ran s fers an d

co n vey an ces t h at Pl ai n ti ff co n ten d s were m ad e i n v io lat i o n o f Geo rg i a’ s Un i fo rm

Frau d u l en t Tra n s fers Act

, OCGA § 1 8 -2 -7 0 et seq

. (t h e “ UFTA”). 3 Th e t ri al co u rt

1 Pl ai n t i ff’ s i ni ti al c o m

p l a i n t was fi l ed o n J u l y 3 0

, 2 01 2

, an d am en d ed

n u m ero u s t i m es t o ad d ad d i t i o nal cl ai m s ag ai n s t ad di t i o n al d efen dan t s

.

2 Th ere are n u m ero u s ap p el l ees l i s t ed on t h e n ot i ce o f ap p eal an d t h e rel ev an t

p art i es wi l l b e m o re s p eci fi cal ly i d en t i fi ed b el o w.

3 W e wi ll refer t o t h e o p erat i v e p ro v i s i on s o f t h e UFTA as t h ey ex i s t ed at t h e

t i m e t h e c h a l l e n g ed tran s fers were m ad e an d t h e co m p l ai n t was fi l ed

, w h i l e n o t i n g

t h at t h e U F T A h a s s i n ce b een am en d ed i n 2 01 5 an d i s no w cal l ed t he Un i fo rm

Vo i dab l e Tran sact i o n s Act (“ UVTA”). See Ga. L. 2 0 15

, p

. 9 9 6

, § 4A-1 (effect i v e J u l y

1 , 2 01 5 ).g ran t ed s u m m ary ju d g m en t t o ap p el l ees

, an d Pl ai n t i ff fi l ed t h i s ap p eal

. W e n o w

affi rm i n p art

, r e v e rs e i n p art

, an d rem an d fo r fu rt h er p ro ceed i ng s as m o re fu l l y s et

fo rt h b el o w.

Th e u n d erl y i ng fact s

, al t h o u gh s o m ewh at co m p l ex an d co nfu s i n g

, 4 are l arg el y

u n d i s p u t ed

. 5 In 2 0 0 6

, th e Peo p l es Ban k of W i n d e r

, Geo rg ia (“ Peo p l es Ban k ”)

ex t en d ed a $ 10 0 m i l l i o n rev o l v i n g li n e o f cred i t (t h e “ Lo an ”) t o W HM M erri l l Ran ch

In v es t m en t s LLC (t h e “ Bo rro wer”). Th e Lo an was ev i d en ced b y a Lo an A g reem en t

d at ed Sep t em

b er 2 8 , 2 0 06 an d a Pro m i s s o ry No te ex ecu t ed “ o f ap p ro xi m at el y ev en

d at e herewi t h ”; it was secu red b y cert ai n real pro p ert y lo cat ed in Ari zo n a. T h e Lo an

was g u aran t eed b y real es t at e d ev el o p er W

. Harri s o n M erri l l (“ Harri s on Merri l l ”) an d

4 So m e o f t h e co n fu s i o n i n th i s c a s e s t e m s fro m t h e freq u en cy i n wh i ch

“ M erri l l ” ap p ears as p art o f t h e n am e o f t h e p ers o n s o r en t i t i es in v o l v ed o r referen ced

i n t h i s cas e, i ncl u d i n g Pl ai n t i ff an d v ari o us d efen d an t s

, an d fro m t h e fact t h at a

n u m b er of t h e t ru s t s an d LLCs i n v o lv ed an d referen ced i n t h i s cas e al s o h av e

o v erl ap p i n g n am es

. W e hav e at t em p t ed t o s i m

p li fy th e fact s wh en ev er p o s s i b l e, an d

h av e el im i n at ed d et ai l s t h at

, wh i l e p o s s i bl y p ert i n en t t o p o st -ap p eal o r po t en ti al p o s t

s u m m ary ju d g m en t p ro ceed i n g s , are n o t rel ev an t t o o u r an al y s i s

.

5 “ Th i s Co u rt r e v i e w s t h e g ran t o f s u m m ary ju dg m en t d e n o v o

, vi ewi n g t h e

ev i d en ce i n t h e l i g h t m o s t fav o rab l e t o t h e n o n m o v an t .” Go d wi n v. Mi z p a h Fa r ms

, LLLP , 3 3 0 Ga. Ap p . 3 1

, 3 1 (7 6 6 SE2 d 4 9 7 ) (2 0 1 4 ).

2ei g h t t ru s t en t i t i es 6 he co n t ro l l ed (co l l ect i v el y “ Gu aran t o rs ”). In ad d i t i o n t o Peo p l es

Ban k, n u m ero u s o t her b an k s h el d p art i ci pat i o n i n t eres t s i n t he Lo an

.

Ov er t i m e, $ 8 9 m i l li on was ex t en d ed t o t h e Bo rro wer u n d er th e Lo an

.

Ho wev er, t h e Bo rro wer w as u nab l e t o m ak e t h e req u i red p ay m en t s on t h e d eb t

, an d

t h e L o an was d ecl ared i n d efau l t o n o r aro u n d Sep t em b e r 2 6

, 2 0 08

. A few m o n t h s

l at er, i n Feb ru ary 2 0 0 9, Peo p l es Ban k p u rch as ed b y cred i t b id t h e Ari zo n a p ro p ert y

s ecu ri n g t h e Lo an

, an d i n Ap ri l 2 0 0 9

, Peo pl es Ban k i n s t i t u t ed p ro ceed i n g s i n Ari zo n a

ag a i n s t t h e Bo rro w er an d Gu aran t ors t o reco ver t h e d efi ci en cy o wi n g aft er t h e s al e

o f t h e p ro p ert y

(t h e “ Ari zo n a l it i g at i o n ”).

W h i l e t h e Ari zo n a l it i gat i o n was p en d i n g

, o n S e p t e m b er 2 8

, 2 0 0 9

, Peo p l es

Ban k en t ered i nt o a wri t ten ag reem en t wi t h a “ St eeri n g Co m m i t t ee o f Su b p art i ci p an t

Len ders ,” t o s el l i ts i n teres t i n t h e Lo an an d co l l at eral (“ Ag reem en t ”). Th e A g reem en t

ex p res s l y p ro v id ed t h at an u n i d en t i fi ed l eg al en t i t y w o u ld b e creat ed p ri o r t o cl o s i n g

t o co n s u m

m at e th e tran s act i o n

, an d Pl ai n t iff w as fo rm ed ab o u t a m o n t h l at er fo r t h i s

6 Th e tru s t Gu aran t o rs were a s i n g l e t ru st creat ed u n d er Li n e It em Ni n e o f t h e

W i ll o f Art h ur Jes s e M erri l l (“ t h e It em Ni n e W il l Tru s t”), an d s ev en “ b reak o u t ” t ru s t s

— W HM M an ag em en t T ru st ; W H M M erri ll Ran ch Tru s t ; M e r r i l l Co m m u n i t i es &

Res ort s Tru s t (M CRT); W HM Ch at t ah oo ch ee H i l ls Tru st ; W H M Co p per Mo u n t ai n

Tru s t ; W HM Pal om a Tru s t ; an d W H M Sk y Val l ey T ru s t. Th e b reak o u t t r u s t s were

creat ed fro m t h e o ri g i nal It em N i n e W i l l Tru s t as p a r t o f an o rg an i zat i o n al

res t ru ct u ri ng i n 2 0 0 6

.

3p u rp os e. On Oct ob er 2 8 an d 2 9

, 2 0 0 9, Peo p les Ban k ex ecu t ed a s eri es o f do cu m en t s

,

i n cl u d i n g an a l l o n g e t o t he n o t e, wh i ch t ran s ferred an d as s i g n ed i t s i n t eres t s i n t h e

Lo an t o Pl ai n t i ff, an d Pl ai n t i ff wi red t h e p u rch as e m o n ey fo r t h e Lo an t o Peo p l es

Ban k.

Aft er Pl ai nt i ff was s u b s ti t u t ed fo r Peo p les Ban k i n t h e A ri zo n a l it i gat i o n

, t h e

p art i es s et t l ed t h e s u it fo r $ 1 0 m i l l i o n, p l u s p o st -ju d g m en t i n teres t

, an d t h e ju d g m en t

was en t ered acco rd i n g l y on J u n e 1 4

, 2 0 1 1

. 7 Pl ai n t i ff p et i t i o n e d t o d o m es t i cat e t h e

ju d g m en t i n t h e Su p eri o r Co u rt o f Fu l to n Co u n t y

, Geo rg i a an d o n Au g u s t 1 5

, 2 0 1 1,

t h e co u rt en t ered an o rd er d o m es t i cat i n g t h e Ari zo na ju d gm en t.

Du ri n g p o s t -ju d g m en t d i s co very

, Pl ai n t i ff d et erm i n ed t h at s ho rt l y aft er t h e

Lo an was d ecl ared i n d efau l t i n Sep t em ber 2 0 08

, t h ree l i m i t e d l i ab i l i t y co m p an i es

wi t h co rp o rat e rel at i o n s h i p s t o M erri l l co m p an i es 8 m ad e t ran s fers o f u ns ecu red real

p ro p ert y (co l l ect i v el y t he “ 2 0 0 8 LLC Real Es tat e Tran s fers ”) t o v a r i o u s n ewl y

creat ed en t i t i es t h at were, i n t urn

, d i rect l y o r i n d i rect l y “ o wn ed ” b y t ru st s es t ab l i s h ed

7 Th e d efen d an t s i n t h e A ri zo n a l i t i g at i o n

— i .e., t h e o ri g i n al B o r r o wer an d

Gu aran to rs o f t h e Lo an , wi l l h erei n aft er b e referred t o as “ J u d g m en t Deb to rs .”

8 Th e 2 0 0 8 Real Es t at e Tran s fers were m ad e b y W HM Pal o m a In v es t m en t s

, LLC; W HM Sk y Val l ey In v es t m en t s LLC; an d In d i an Creek Res o rt L LC. Th es e

en t i t i es wi l l b e referred t o as t h e 2 0 0 8 LLC Real Es t at e Tran sfero rs

.

4fo r t h e b e n efi t o f Harri s o n M erri l l

, h i s t h en -wi fe wh o m h e was i n t h e p ro ces s o f

d i v o rci n g

, an d h i s fi v e ch i l d ren (“ Ch i l d ren ’ s Tru s t s ”). Al t h o ug h t h e 2 0 0 8 LLC Real

Es t at e Tran s fero rs were n ei th er g u aran t o rs of t he Lo an n o r J u dg m en t Deb t o rs an d t h e

p r o p ert y t ran s ferred had n o t b een p l ed g ed t o s ecu re t h e Lo an

, th e LLC Real Es t at e

Tran s fero rs were at l eas t p art i al l y o wn ed b y

s ev eral o f t h e J u d g m en t Deb t o rs

.

Ad d it i on al l y

, Pl ai n t i ff d is co vered t h at at t h e b eg i nn i n g o f 2 01 0

, t he It em Ni n e

W i ll Tru s t

, wh ich i s o n e o f t h e J u d g m en t Deb to rs

, t ran s ferred i t s m e m b e rs h ip

i n t eres t s i n fi ve l i m i t ed l i ab i l i t y co m p an ies t o t h e M erri ll Fam i l y Part n ers hi p , LLC,

wh i ch was “ o wn ed ” b y th e Ch i l d ren ’ s Tru s t s (“ It em Ni n e W i l l Tran s fer”). An d

an o th er t ran s fer al s o o ccu rred s o m et im e at t h e b eg i n n i ng o f 2 0 1 0 9 wh en M erri l l

M i n i ng LLC, t ran s ferred s t o ck i t o wn ed i n S-Co rp o rat i o n Fl o ren ce Co p p er M i n i n g

In c. 1 0 ei t h er d i rect l y o r i n di rect l y t o t h e Ch i l d ren ’ s Tru s t s (“ Merri l l M i n i n g

Tran s fer”). Al t h o u g h n ei t her Fl o ren ce Co p p er n o r M erri l l M i n i ng were g u aran t o rs o f

9 Al t ho u g h th e s t o ck t ran s fer d o cu m en t s w ere dat ed J u n e 8

, 2 0 0 8

, ev i d en ce was

p r e s e n t ed th at t he d o cu m en t s were act u al l y ex ecu ted b et ween J u n e 1

, 2 0 0 9 an d

Feb ru ary 1 8

, 2 01 0

, an d t h ere n ow ap p ears t o b e s o m e ag reem en t b et ween th e p art i es

t h at t h i s tran sfer t oo k p l ace s o m et i m e i n J an u ary o r Feb ru ary 2 01 0 ; acco rd i n g l y

, we

wi l l as s u m e l i k ewi s e fo r t h e p u rp o s e o f t h is ap p eal

.

1 0 Fl o ren ce Co p p er M i n i n g In c. was n o t n am ed as a d efen d an t b el o w an d i s n ot

a p art y t o t h i s ap p eal

.

5t h e Lo an o r J u d gm en t Deb t o rs

, J u d g m en t Deb t o r M CRT was a m e m b er o f M erri l l

M i n i ng , LLC.

On J u l y 3 0, 2 0 1 2

, Pl ai n t i ff fi l ed i t s i n i t i al co m p l ai nt 1 1 u n der t h e UFTA s eek i n g

t o s et as i d e o r i m

po s e a co ns t ru ct i v e t ru s t o n t he as s et s i n v o lv ed i n t h e M erri l l M i n i n g

Tran s fer. Sh ort l y b efo re t h e s u it was fi led

, o n M arch 9, 2 01 2

, an d t h en aft er t h e s u i t

was fi l ed o n D ecem

b er 1 9

, 2 0 1 3

, Pl ai n t i ff o bt ai n ed ch arg i n g o rd ers ag ai n s t t h e

m em b ers h i p an d o wn ers h i p i nt eres t s o f v ari o u s J u d g m en t Deb t ors i n nu m ero u s

l i m i ted l i ab i l i t y co m

p an i es

, 1 2 i n cl u d i n g th e 2 0 0 8 LLC Real Es t at e Tran sfero rs an d t h e

M erri l l M i n i n g Tran sfero r.

Pl ai n t i ff am en ded i t s co m p l ai n t s ev eral t i m es

, an d o n J an u ary 9

, 20 1 4

, Pl ai n t i ff

fi led a m o t i o n an d p ro p o s ed am en d ed co m p l ai n t t o ad d ad d it io n al d efen d an t s an d / o r

1 1 J u dg m en t D eb t o rs M CRT an d Harri s o n Merri l l, an d n o n -ju d g m en t d eb t o rs

M erri l l M i n i n g, LLC, th e Tru s t ees of t h e Ch i ld ren ’ s Tru st s

, an d Harri so n M erri l l ’ s

ch i l d ren were n am ed as d efen d an t s i n t h e i n i t i a l co m p l ai n t. Pl ai nt i ff al l eg es t h at as

a res u l t o f t h i s tran s fer, p ro ceed s fro m t h e i m m i nen t s al e o f t h e m i n i n g ri g h t s o wn ed

b y Fl o ren ce Co p p er were d is t ri b u t ed to t h e C h i l d r e n’ s T ru s t s i n s t ead o f M erri l l

M i n i ng

, LLC, w h o w o u l d h av e, acco rd i n g t o Pl ai n t iff, t h en b een req u ired b y i t s

Op erat i n g Ag reem en t t o d i s t ri b u t e t h e p ro ceed s t o J ud g m en t Deb t o r M CRT.

1 2 Pu rs u an t t o OCGA § 14 -1 1 -5 0 4 (a), “ [o ] n ap p li cat i on t o a co u rt o f co m p et en t

ju ri s d i ct i o n b y

an y ju d g m en t cred i to r o f a m em b er o r o f an y as s i gn ee o f a m em b er,

t h e co u rt m ay ch arg e t h e l i m i t ed l i ab il i ty c o m p a n y i nt eres t of t h e m em b er o r s u ch

as s i g n ee wi t h p ay m en t o f t h e u n s at i s fi ed am o u n t o f t h e ju d g m en t wi t h i n t eres t .”

6frau du l en t t ran s fer cl ai m s b as ed o n t h e 20 0 8 Real Es t at e Tran s fers an d t h e 2 01 0 It em

Ni n e W i ll Tran s fer. On Ap ri l 2 2

, 2 0 1 4

, t h e t ri al co u rt g ran t ed Pl ai n t i ff’ s m o t i o n to

am en d

, an d o n Ap ri l 2 9

, 2 0 1 4, Pl ai n t i ff am en d ed i t s co m p l ai n t t o ad d th es e frau d u l en t

t ran s fer cl ai m s an d d efen dan t s

.

Su b s eq uen t l y

, t h e p art i es fi l ed o p p o si n g m o t i o n s fo r s u m m ary ju d g m en t

, an d

fo l l o w i n g a h eari n g

, t h e t ri al co u rt den i ed Pl ai n t i ff’ s s u m m ary ju d g m en t m o t i o n an d

g ran t ed Ap p el l e e s ’ m o t i o n

, en t eri n g ju d g m en t i n fav o r of Ap p el l ees on al l cl ai m s

.

Th e t ri al co u rt b as ed it s ru l i ng o n t h e fo ll o wi n g fi n d i n g s: (1 ) t h e Lo an as s i g n m en t to

Pl ai n t i ff was i n effect i v e an d t h u s Pl ai n ti ff was n o t t he h ol d e r o f t h e Lo an ; (2 ) ev en

i f t h e as s i g n m e n t o f th e d eb t was p ro p er, t h e frau d cl ai m s were n o t as s i g n ab l e as a

m at t er o f l aw; (3 ) Pl ai n t i ff l ack ed s t an d i n g u n d er t h e UFTA b ecau s e i t was n o t a

cred i t o r o r s u b s eq u en t cred i t or o f th e n o n-ju d g m en t d eb t o r LLC tran s fero rs ; an d (4 )

t h e Lo an

, d o m es t i cat ed Ari zo n a J u d g m en t

, an d ch arg i n g o rd ers d i d n o t creat e “ a

d i rect n ex u s ” o r bas i s o f di rect l i ab i l i ty b et ween Pl ai n t iff an d th e L LC t ran s fero rs

. As

m o re fu l l y s et fo rt h b el o w, we no w rev ers e i n part an d affi rm i n p art t h e t ri al co urt ’ s

o rd er an d rem an d fo r fu rt h er p ro ceed in g s co n s i s t en t wi t h t h i s o p i n i o n

.

1

. A s a p rel i m i n ary m at t er, we m u s t deci d e i f t h e L oan was p ro perl y as s i g n ed

t o Pl ai n t i ff. To an s w er t h i s qu es t i o n

, we m u s t d et erm i n e i f, as t h e t ri al co u rt fo u n d,

7t h e as s i g n m e n t o f t h e Lo an t o Pl ai n t i ff was i n effect i v e b ecau se Peo p l es Ban k h ad

al read y as s i g n ed t h e Lo an t o th e St eeri n g Co m m i t t e e p u rs uan t t o t he t erm s o f t h e

Su b p art ici pan t Ag reem en t

.

W e b eg i n o u r an al y s i s b y t u rn i n g t o t h e rel ev an t p ro v i s i o n s o f t he Ag reem en t

,

wh i ch we rev i ew u nd er t h e u s u al ru l es o f co n t ract co n s tru ct i on

, JB M In ves t men t

s

,

LLC v. Ca l l a h a n I

n d u s

., In c., 2 9 3 Ga. Ap p

. 58 0

, 5 8 2 (1 ) (6 6 7 SE2 d 4 29 ) (2 0 0 8 ),

m ind fu l t h at “ [w] here co n t ract l an g u ag e i s u n am b i g u o u s

, co n s tr

uc tion is unne c e ssa

r y

,

an d t h e co u rt s i m

pl y en fo rces t h e co n t ract acco rd i n g to i t s cl ear term s .” (Ci t at i o n an d

p u n ct u at i o n om i tt ed .) Lo s ey v. Pr i et o

, 3 2 0 Ga. Ap p

. 3 9 0

, 3 9 1 (7 3 9 SE2 d 8 34 ) (2 0 1 3 ).

Co n t rary t o t h e t ri al co u rt ’ s fi n di n g s

, t h e Su b p art i ci p an t Ag reem en t d i d n o t effect an

i m m ed i at e t ran s fer an d as s i gn m en t o f t h e Lo an b y Peo p l e’ s Ba n k t o t h e St eeri n g

Co m m i t t ee o f t h e s u bp art ici p an t b an k s

. Rat h er, t h e u n a m b i gu o u s t erm s o f t h e

Ag reem en t s h o w t h at t h e act u al t ran s fer an d as s i g n m en t of t h e Lo an was t o b e m ad e

at a fu t u re d at e. Fo r ex am p l e, t h e Ag reem en t ex pres s l y pro v i d es t hat t h e S e l l e r’ s

ri gh t s i n t h e Lo an an d Lo an d o cu m en t s wo ul d be so l d

, t ran sferred

, a s s i g n e d an d

co n vey ed “[

u ] p o n s at i s fact i o n o f t h e term s an d co n d i t i o n s co n t a in ed herei n

, . . .”

i n cl u d i n g a d u e d il i gen ce rev i ew co n d u ct ed t o th e “ Bu y er’ s” s at is fact i o n o f t h e

rel ev an t d o cu m en t s. (Em ph as i s s u p p l ied .) Fu rt h er, t h e Ag reem en t al s o ex p res s l y

8p ro v id es t h at a n o t-y et -i n -ex i s t en ce en t it y

, s u ch as t h e Pl ai n ti ff, wo u l d b e creat ed by

t h e B u y er fo r t h e pu rp o s e o f act u al l y co n s u m m at in g t he t ran s act i o n, d efi n ed i n t h e

A g reem en t as t h e Cl o si n g

. Th e ev i d en ce ap p ears un d i s p u ted t h at th e Pl ai nt i ff w a s

fo rm ed ab o u t a m o n t h l at er t o cl o s e t h e Lo an , an d t h at t h e o n l y “ Cl o s i n g ” t h at t o o k

p l ace o ccu rred o n o r ab ou t Oct o b er 2 8

, 2 0 0 9

, wh en an al l on g e 1 3 was ex ecu t ed

, t h e

g u aran ti es an d s ecu ri t y i n s t ru m en t s were t ran s ferred an d as s i g n ed t o Pl ai n t i f f

, a n d

Pl ai n t i ff wi red t he p u rch as e m o n ey t o Peo p l es Ban k

.

“ A p art y m ay as s i g n t o an o t h er a co n t ract u al ri g h t t o co l l ect p ay m en t

, i n cl u d i n g

t h e ri g ht to s u e t o en fo rce t h e ri g h t

. Bu t an as s i g n m en t m u s t b e i n wri t in g in o rd er fo r

t h e co n t r a c t u a l r i g h t t o b e en fo rceab l e b y t he as s i g n ee.” (Ci tat i o n an d pu n ct u at i o n

o m it t ed .) Ho s ch v. Co l o n i a l P a ci f ic Lea s i n g Co r

p

. , 3 1 3 Ga. Ap p. 87 3

, 8 7 4 (2 ) (7 2 2

SE2 d 7 7 8 ) (2 0 12 ); W

ar e v. Mu l t i b an k 2 0 0 9 -1 RES -ADC Ven t u re, LLC, 3 2 7 Ga. Ap p.

2 4 5

, 2 5 1 -5 2 (4 ) (7 5 8 SE2 d 1 4 5 ) (2 0 1 4 ). Here, th e t ran s fer an d as s i g n m en t of t h e Lo an

o ccu rred wi t h t h e ex ecu ti o n o f t h e al l o n g e an d o t h er d ocu m en t s fro m Peo p l es Ban k

t o Pl a i n t iff. Acco rd i ng l y

, th e t ri al co u rt erred b y g ran t i n g s um m ary ju d g m en t to

1 3 “ An al l o n g e i s a p i ece of p ap er at t ach ed t o a p ro m is so ry n o t e o n wh i ch

p art i es wri t e en d o rs em en t s fo r wh i ch th ere i s n o ro o m o n t h e i n s t ru m en t i t s el f.”

(Ci t at i o n o m i t t ed .) M

i l es t o n e v. Da vi d

, 2 5 1 Ga. Ap p

. 8 3 2

, 8 32 , n .1 (5 55 SE2 d 1 6 3 )

(2 0 0 1).

9Defen d an t s b as ed o n a fi nd i n g t h at t h e Lo an h ad n ot b een effect i v el y as s i g n ed to

Pl ai n t i ff. 1 4

2

. T h a t d oes n ot en d o u r i n q u i ry

, h o wev er, becau s e t h e t ri al co u rt al s o ci t ed

o t h er reas o n s w h y t h e Pl a i n t i f f l ack ed st an d i n g t o p u rs ue i t s cl ai m s

. W e b eg i n t h i s

p o rt i on o f o u r an al y s i s b y l o ok i n g t o t h e rel ev an t p ro v i s i on s o f t h e UFTA.

At t he p ert i n en t t i m e, O CGA § 1 8 -2 -7 4 (a ) (1 ) (2 0 1 4), t h e act ual frau d

p ro v is i o n o f t h e U F T A pu rs u an t t o wh i ch Pl ai n t i ff fi l ed i t s cl ai m s

, p ro v i d ed as

fo l l o w s :

A t ran s fer m ad e o r o bl i g at i o n i n cu rred b y a deb t o r i s frau d u l en t as to a

cred it o r, wh et h er t h e cred i t o r’ s cl ai m aro s e b efo re o r aft er t h e tran s fer

was m ad e o r th e o b l i gat i o n was i n cu rred

, i f t h e deb t o r m ad e t h e tran s fer

o r i n cu rred t he ob l i g a t i on : (1 ) W i t h act u al i nt en t t o h i n d er, d el ay

, o r

d efrau d an y

cred i t o r o f t he d eb t o r.” 1 5

1 4 Th e Defen d an t s al s o m ak e t h e ad d i t i on al arg u m en t th at

, ev en as s u m i n g t h e

Lo an was p ro perl y as s i g n ed t o Pl ai nt i ff, t h ere was n o ev i d en ce p r e s e n t e d t h at t h e

cl ai m s at i s s u e i n th i s cas e were as s i g n ed t o Pl ai n t i ff. Bu t t h i s arg u m en t i s u n av ai l i n g

as t o t h e J u d g m en t Deb t o rs n a m e d a s p a r t i es in t h i s cas e, as t h ey are b o u n d b y t h e

Ari zo n a J u d g m en t, wh i ch was en t ered b y co n s en t an d d om es t i cat ed i n Geo rg i a aft er

Pl ai n t i ff w as s u bs t it u ted as a p art y i n th e Ari zo n a l i t i g at i on

. M o reo v er, we n eed n ot

p ars e t h i s i s s u e as t o t he n o n

- j u d g m e n t d eb t o rs s i n ce Pl ai n t i ff’ s UFTA cl ai m s fai l

ag ai n s t t h em

fo r o t h er reas o n s as s et fo rt h i n Di v i s i o n s 2 an d 3

.

1 5 Wh et h er a tran s fer i s m ad e w i t h act u al i n t en t t o d efrau d a cred i t o r i s

d et erm i n ed b y referen ce t o s u b s ect i o n (b ) o f OCGA § 1 8 -2 -7 4

, wh i ch co n t ai ns a n o n

ex h au s t i v e l is t o f fact o rs

, co m m o nl y cal l ed th e “ b ad g es o f frau d ,” wh ich m ay b e

10Th u s

, a cr ed i t o r is en ti tl ed t o s eek rel i ef 1 6 u n d er t he UFTA fo r t r an s f er s m ad e,

o r o b l ig at i o n s i n cu rred

, by a d eb t o r wi t h act u al i n t en t t o hi n d er, del ay

, o r d efrau d a n y

cred i t o r o f t h e d eb t o r. Ho w ev er, wh i l e u n d er t h e UFTA, a frau du l en t tran s fer cl ai m

can o n l y b e b ro u gh t b y a “ cred i t o r” ag ai n s t a “ d eb t o r,” t he UF T A c o n t ai n s b ro ad

d efi n i t i o n s o f t h o s e t erm s

. A “ cred i t o r” i s a “ p ers o n wh o has a cl ai m ”; a d eb t o r i s a

“ p ers o n wh o i s l i ab le on a cl ai m ”; an d a “ cl ai m ” i s “ a ri g h t t o p ay m en t

, wh et h er o r n ot

t h e ri g h t i s red u ced t o ju d g m en t

, l i q u i d at ed

, u n l i q u i d at ed

, fi x ed

, co nt i n g en t

, m at u red

,

u n m at ured

, d i s p u t ed

, u n d i s pu t ed

, l eg al

, eq u i t ab l e, s ecu red

, o r u n s ecu red

. ” OCGA §

1 8 -2 -7 1 (3 ), (4 ), (6 ) (2 0 1 4 ); RES -GA Hi g h to wer

, LLC v. Go l

s h a n i

, 3 3 4 Ga. Ap p

. 1 7 6,

1 7 8 (1 ) (a) (7 7 8 SE2 d 8 05 ) (2 0 1 4 )

, cert den i ed

, Jan u ary 11

, 20 1 6

. 1 7 Th e UFTA al s o

i n cl u d es an ex pan s i ve d efi n it i o n o f “ t ran s fer,” wh i ch i n cl u d es “ ev ery m o d e, d i rect o r

i n d i rect

, ab s o l u t e o r co n d i t i o nal

, v o l u n t ary o r in v ol u n t ary

, o f d i s p o s i ng o f o r p art i n g

co n si d ered i n d et erm i n i n g in ten t t o d efrau d. See Ta r get Co r p

. v. A mer

so n , 3 2 6 Ga.

Ap p

. 73 4

, 7 3 7 (1 ) (7 5 5 SE2 d 3 3 3 ) (2 0 1 4). Th e t ran s fero rs ’ i n t en t was n o t ad d res s ed

b y t h e t ri al co u rt an d i s n o t an i s s u e i n t h i s ap p eal

.

1 6 Th e rel i ef av ai l ab l e t o a cred i t o r u n d er G eo rg i a’ s UFTA ag ai n st a frau d u l en t

t ran s fer i s s et o u t in OCGA § 1 8 -2 -7 7

, an d i n cl u d es

, am o ng o t h er t h i ng s

, av o i d an ce

o f t h e t ran s fer t o t h e ex t en t n eces s ary t o s at i s fy t he cred i to r’ s cl ai m an d at t ach m en t

ag ai n s t t h e as s et t ran s ferred o r o t h er p ro p ert y o f t h e t ran s feree.

1 7 Th u s

, Geo rg i a’ s v ers i on o f UFTA d o es no t d i s t i n gu i s h b et ween cre d i t o r s

wh o h o l d ju d g m en t s ag ai n s t p ers o n s l i ab l e t o t h em o n a d eb t an d t h o s e wh o d o n o t

.

11wi t h an as s et o r an i n teres t i n an as s et an d i n cl u des p ay m en t o f m o n ey

, rel eas e, l eas e,

an d creat i o n o f a l i en o r o t h er en cu m b r a n c e .” OCGA § 18 -2 -7 1 (1 2 ) (2 0 1 4 ). An d

“ as set ” i s d efi n ed as “ p ro p ert y o f a d eb to r” wi t h cert ai n ex cep t i o n s

. OCGA § 1 8 -2 -7 1

(2 ) (2 01 4 ).

Ap p ly i n g t h es e d efi n i t io n s h ere, i t i s cl ear t h at Pl ai n t i ff m eet s t h e d efi n i t i o n o f

a “ cred it o r” u n d er th e UFTA wi t h res pect t o t h e Ju d g m en t Deb to rs

, wh o were t h e

o ri g i nal Bo rro wer an d Gu aran t o rs o f t h e L o an

, an d ap pel l e e s m a k e n o co n t en t i o n

o t h erwi s e

. B u t o n l y o ne of t h e t ran s fers i n t hi s cas e

— t h e It em N i ne W i l l Tru s t

Tran s fer

— was m ad e b y a J ud g m en t Deb t o r. 1 8 T he q ues t i o n th en i s wh et her Pl ai n t i ff

i s a cred i t o r wi t h s t an d i ng t o s eek rel i ef u nd er t h e UFTA wi th reg ard s t o t h e o t h er

fo u r tran s fers

, wh i ch were m ad e b y n o n -ju d g m en t d eb to r li m i t ed l i ab i l it y co m p an i es

.

Acco r d i n g t o Pl ai nt iff, i t becam e a cred i t o r o f t hes e n o n-ju d g m en t d eb t o r LLC

t ran s fero rs b y v i rt u e of t he ch arg i n g o rd ers

, wh i ch creat ed a “ ri g h t t o p ay m en t ” fro m

,

an d t hu s

, acco rd i ng t o Pl ai n t i ff, a “ cl ai m ” ag ai n s t

, a n y L LC en t it y n am ed i n t h e

1 8 In s t ead

, Ap p el l ees arg u e t h i s cl ai m m u s t fai l b ecau s e i t i s t i m e-b arred u n d er

OCGA § 1 8 -2 -7 9 (1 ) o f t h e UFTA. W e wi l l ad d res s t h i s co n t en t i o n i n Di v i s i o n 4

.

12ch arg i n g o rd ers

, i ncl u d in g th e LLCs wh o m ad e th e 20 0 8 Real Es t at e Tran s fers an d

t h e 2 0 10 M erri l l M i n i n g Tran s fer. 1 9

Pl ai n t i ff m i s ap p reh en ds t h e n at u re of a ch arg in g o rd er. As we recen t l y

ex p lai n ed in Ga s l o wi t

z v. S t a b i l i s Fu n d I, LP

, 3 31 Ga. Ap p

. 1 5 2,1 5 2

, n .2 (7 7 0 SE2 d

2 4 5 ) (2 0 1 5 ), 2 0 “ [a] ch arg i n g o rd er i s [s i m p l y ] a s t at u t o ry p ro v is i on [fo u n d in OCGA

§ 1 4-1 1-5 0 4 ] ‘ t h at en ab l es t h e ju d g m en t cred it o r (o f a m em b er o f a l i m i t ed l i ab i l i t y

co m p an y ) t o real i ze th e v al u e o f t h e j u d gm en t deb t o r-m em b er’ s d i s t r i b u t i o n al

i n t e r e s t

, wh i le at t h e s am e t i m e p ro t ect i n g b o t h t h e (l i m i t ed l i ab i li t y co m p an y ’ s )

ab i l i t y t o op erat e an d t h e i nt eres t s o f t h e ot h er m em b ers

. ’ 5 1 Am J ur2 d Li m i t ed

Li ab i l i t y Co m

p an i es § 2 3 .” “ Th u s

, fro m t h e l i m i t ed l i ab i l i t y co m p an y ’ s s t an d p o i n t

,

i t i s b u s i n es s as u s u al ex cep t t h at an y d i s t ri b ut i o ns t o t h e m em b er s u b ject t o t h e

ch arg i n g o rd er are d iver t ed t o th e ju d g m en t cred i t o r.” (Em p h as i s s u p p l i ed .) Ma h a lo

1 9 A l t h o u gh Pl ai n t i ff ci t e s t o b o t h t he Ari zo n a an d Geo rg ia l i m i ted l i ab i l i t y

co m p an y act s an d ch arg i n g o rd er p ro v i s i o ns

, A.R.S. § 29 -6 0 1 et s eq

. an d Ch ap t er 1 1

o f Ti t le 1 4 o f th e Geo rg i a Co d e, th e ch arg i n g o rd ers i n t h i s cas e w ere is s u ed b y a

Geo rg i a co u rt an d m ak e no referen ce t o t h e Ari zo n a s t at u t e. Th u s

, we wi l l co n fi n e o u r

an al y s i s t o Geo rg ia’ s ch arg i n g o rd er s t at u t es

.

2 0 In Ga sl o wi t

z , we h el d t h at a ju d g m en t cred i t o r o f a m em b er o f an LLC h as

n o ri g h t t o s eek an acco u n t in g o f t he as s et s o f t h e LLC. 3 3 1 Ga. Ap p . at 1 5 5 (2 ).

13In ves t men t

s III, LLC v. F

i rs t Ci t i z en s Ba nk & Tr u st Co

., In c., 3 3 0 Ga. Ap p. 7 3 7

, 7 4 3

(7 6 9 SE2 d 1 5 4 ) (2 0 1 5 ). 2 1

Im p o rt an t l y fo r t h e i s s u e we m

u s t d eci de i n t h i s cas e,

[a] ch arg i ng o rd er

. . . g i v es n o d i rect rem ed y ag ai n s t co m p an y p ro p ert y

,

Ni g r i v. Lo t z

, 2 1 6 Ga. Ap p

. at 2 0 5 (2 ), a n d co m p an y as s et s

. . . w o u l d

n o t b e s u b

ject t o sat is fact i o n o f [a m em b er’ s i n d i v id u al ] deb t

. “ A

m em b er h as no i n t eres t i n s p eci fi c li m i ted l i ab i l i t y co m p an y p ro p ert y .”

OCGA § 1 4 -1 1 -5 0 1 (a). See gen eral l y Acr ee v. McMa h an

, 2 7 6 Ga. 8 8 0

,

8 8 1 ( 5 8 5 S E2 d 87 3 ) (2 0 0 3 ) (a t hi rd -p art y cred it o r m ay n o t d i sreg ard

co rp orat e fo rm

s o as t o reach co rp orat e as s et s t o s at i s fy cl ai m s ag ai n s t

an i n d i v i d u al co rp o rat e i n s i d er); W o r d v. S t i d

h am , 2 7 1 Ga. Ap p

. [4 3 5

,

4 3 7 (6 0 9 SE2 d 6 5 1 ) (2 0 04 )] ( “ [ T] h e h o l d er o f an i n t eres t i n [a li m i ted

l i ab i l i t y ] co m

p an y h as n o i n t eres t i n s p eci fi c p ro p e r t y o w n ed b y th e

co m p an y

. ”)

Gas lo wi t z, 3 3 1 Ga. Ap p . at 1 5 6 (2 ).

2 1 Th e i s s u e i n Ma ha l o w as wh et h er an ap p l i cat i o n fo r a ch arg i n g o rd er ag ai n s t

a m em b er’ s d i st ri b u t i o nal i nt eres t s i n a LLC m u st b e fi l ed b y

t h e ju d gm en t cred it o r

as a s ep arat e act i o n

, ap art fro m t h e o ri g i n al act i o n i n wh i ch t h e ju d g m en t cred it o r

o b t ai n ed t h e ju d g m en t ag ai n s t t h e m em b er o f t h e L LC, an d i n a co u rt wi t h j u ri s d i ct i o n

o v er t h e LLC. W e co n cl u d ed t h at u nd er t h e L LC ch arg i n g o rd er st at u t e, i t i s o n l y

n eces s ary fo r a co u rt t o h a v e j u ri s d i ct i o n o ver t h e ju d g m en t d eb t o r t o h av e t h e

au t h o r i t y t o en t er a ch arg i n g o rd er ag ai n s t t h e ju d g m en t d eb to r’ s d is t ri b u t i o n al

i n t eres t s i n an LLC, an d th a t

, t h erefo re, an act i o n fo r a ch arg in g o rd er m ay b e fi l ed

u n d er t h e s am e cas e n u m

b er an d i n t h e s am e co u rt t h at i s s u ed t h e o ri g i n al u n s at i s fi ed

ju d g m en t ag ai n s t t h e d eb to r. Ma h a l o , 3 3 0 Ga. Ap p

. at 7 4 3

.

14It i s cl ear fro m t h e fo reg o i n g t h at a ch arg i n g o rd e r do es no t creat e a d eb t o rcred i t o r rel at i o n s h i p b et ween t h e ju d g m en t cred it or wh o o b t ai n ed t h e ch arg in g o rd er

an d th e LLC wh o s e m em

b er’ s i n t eres t s are b ei n g ch arg ed

. Ho wev er, i n i t s rep l y an d

s u p p lem en t al bri efs t o t h i s Co u rt

, Pl ai n t i ff m ak es ad d i t i o n al arg u m en t s co n cern i n g

i t s s tan di n g t o ch al l en g e th e LLC t ran s fers

, s t art i n g wi t h t h e g en eral prem i s e t h at

LLCs are n o t im

m un e f r o m c l a i m s u n d er t h e UFTA. W e ag ree t h at LLCs are n ot

i m m u ne fro m cl ai m s u nd er th e UFTA if a deb t o r-cred i t o r rel at i o n s h i p ex is t s b et ween

t h e p ers o n s eek i n g rel i ef u nd er UFTA an d t h e LLC (e.g

., i f t he LLC o wed a d eb t to

t h e p l ai n ti ff). Bu t wh ere, as i n t h i s cas e, a cred i t o r o f a m em b er o f t h e LLC d o es n ot

al s o h av e a d eb t o r-cred i to r rel at i on s h i p wi th t h e LLC, t h e cred it o r d o es n o t al s o

b e c o m e a cred i t o r o f t h e L LC b y o b t ai n i n g a ch arg i n g o rd er ag ai ns t th e LLC.

Acco rd in g ly

, th e cred i t o r d o es n o t h av e s t an di ng u n d er t h e UFTA t o set as i d e a

t ran s fer o f as s et s m ad e b y t he LLC s o l el y

b y o bt ai n in g a ch arg i n g o rd er ag ai n s t t h e

LLC.

Pl ai n t i ff al s o arg u es t h at i t h as s t an di n g u n der t he UFTA t o s et as i d e th e M erri l l

M i n i ng T ran s fer b ecau se J u d g m en t Deb t ors Harri s o n M erri l l an d M CRT, t h ro u g h i t s

t ru s t ee, “ p art i ci p at ed ” i n t h e t ran s fer b y “ i ns t ru ct [i n g ] ” t h at t h e t ran s fer b e m ad e an d

ex ecu t i n g t h e n eces s ary d o cu m en t s

. As st at ed ab o v e, a t ran s fer i s b ro ad l y d efi n ed

15u n d er OCGA § 1 8 -2 -7 1 (1 2 ) o f t h e UFTA t o in cl ud e b ot h d i rect an d i n d i rect t ran s fers

o f an as s et o r an i n t eres t i n an as s et

, an d an as set i s d efi n ed as p ro pert y o f t h e d eb t o r.

Th u s, u n der t h e p l ai n l an g u a g e o f t h e UFTA, p art i ci pat i ng or ev en d i rect in g t h at a

t ran s fer o f pro p ert y b e m ad e has n o co n s eq uen ce u n l es s t h e as s et was p ro p ert y o f t h e

d eb to r, wh ich it was n o t h ere. An d al t h ou g h as Pl ai nt i ff arg u es , o u r Su p rem e Co u rt

i n Bi sh o p v. Pa t to n

, 2 8 8 Ga. 6 0 0

, 60 8

, n .5 (7 0 6 SE2 d 6 3 4) (2 0 1 1 ), o verru l ed i n p art

o n o t h er g ro un d s

, S

RB In ves t m en t S

vcs

., LLLP v. Br a n ch Ba n ki n g an d Tr u s t Co

. , 2 8 9

Ga. 1

, 5 (3 ), n .7 (7 0 9 SE2 d 2 6 7 ) (2 0 1 1 ), h as reco g n ized t h at t h e t ran s fer n eed n o t b e

m ad e b y t h e d eb t o r d i rect ly

, t h at cas e i n v o l v ed th e wi t h d r a w a l o f fu n d s b y t h e

d eb to r’ s s o n i n a jo in tl y o wn ed b an k acco u n t an d i s t h us read i l y d is t in g u i s h a b l e

b ecau s e t h e fu n d s b ei n g t ran sferred were act u al l y p ro p ert y o f t h e d eb t or (as wel l as

t h e s o n / jo i n t acco u nt h o ld er).

M o reo v er, al th o u g h Pl ai n t i f f d i sav o ws t h at i t i s p ro ceed i ng u n d er an “ al t er

eg o ” t h eo ry

, Pl ai n t i ff i s es s en t i al l y as k i n g t o d i s reg ard t he co rp o rat e f o r m an d fi n d

t h at a cred i t o r o f a m em

b er o f an LLC i s al s o a cre d i t o r o f t h e LLC fo r pu rp o s es o f

at t ach i n g t h e LLC’ s as s et s an d p rev en t i n g t h ei r t ran s fer i n o rd er t o s at i s fy t h e d eb t

.

In a s o m ewh at d i fferen t co n t ex t

, o u r Su p rem e Co u rt h as h el d th at a cred i t o r m ay n ot

reach t h e as s et s o f a co rp orat io n o r LLC t o s at is fy a d eb t o f o n e o f i t s sh areh o l d ers

16o r m em

b ers

. Acr ee v. McMa h a n

, 2 7 6 Ga. 88 0

, 8 8 1 (5 8 5 SE2 d 8 7 3 ) (2 0 03 ). See al s o

Ot er o v. Vi t o

, 2 0 0 9 U. S. Di s t

. LEXIS 8 66 3 8, at *1 9 (M .D. Ga. 2 0 0 9) (ci t i n g Acr ee

,

h el d t h at Geo rg i a l aw d o es n o t reco g n i ze “ rev ers e v ei l-p i erci n g ,” t h at i s

, pi erci n g o f

t h e v ei l t o t h e ex t en t t h at it wo u l d al l o w an ‘ o u ts i d er,’ s u ch as a t h i rd p art y cred i t o r,

t o pi erce t h e v ei l i n o rd er t o reach a co rp o rat io n ’ s as s et s t o s at i s fy cl ai m s ag ai n s t an

i n d i v i d u al co rp o rat e i n si d er); s ee g en eral l y In re Ch r i s t i n e M. S t ad l er

, No

. 0 4 -9 1 9 4 4,

2 0 0 5 Ban k r. LEXIS 5 71

, at * 3 ( B a n k r

. N.D. Ga. M arch 3 0

, 2 00 5 ) (LLC i n wh i ch

d eb to r i n b an k ru p t cy was th e s o l e m em b er was n o t it s e l f a d eb t o r s u b ject t o t h e

au t o m at i c s t ay p ro v i s io n s o f t h e Ban k ru p t cy Co d e). W e fi nd t h at au t ho ri t y p ers u as i v e

h ere.

Bas ed o n t h e fo reg o i n g

, we ag ree wi t h t h e t ri al co u rt t h at t h e Pl ai n t i ff d i d n ot

h av e s t a n d i n g u n d e r t he UFTA t o s et as i d e t he t ran s fer o f as s et s m ad e b y t h e n o n

ju d g m en t d eb t ors i n t h e 20 0 8 Real Es t at e Tran s fers o r t h e 20 1 0 M erri l l M i n i n g LLC

Tran s fer. Acco rd i n g l y

, t h e t ri al co u rt p ro p erl y gran t ed s u m m ary j u d gm en t to

Defen d an t s o n t hes e cl ai m s

.

3

. D efen d an t s fu rt h er arg u e th at

, as t h e t ri al co u rt fo un d

, an ad d i t io n al g ro u n d

ex i s t s t o g ran t s u m

m ary ju d g m en t on Pl ai n t i ff’ s cl ai m s t o s et as i d e t h e al l eg ed l y

frau du l en t 2 00 8 Real Es t at e T r a n s f e rs w h i ch

, i n ad di t io n t o bei n g m ad e b y a n o n

17ju d g m en t d eb to r, were m ad e b efo re t h e Lo an was as s i gn ed t o Pl ai n t i ff i n 2 0 0 9.

S p e c i fi cal l y

, Defen d an t s arg u e t h at Pl ai n t i ff’ s cl ai m s to s et as i d e t hes e p re-Lo a n

as s i g n m en t t ran sfers al s o fai l u n d er o u r Su p rem e Co u rt ’ s l o n g -s t an d i n g p reced en t in

S ecu ri t y Feed & S

eed Co mp a n

y o f Th o ma s vi l l e, In c. v. NeS mi t h

, 2 1 3 Ga. 7 8 3 (1 0 2

SE2 d 3 7 ) (1 9 5 8 ).

Ap p ly i n g NeS

mi t h

, we recen t l y co n s i d e r ed t h i s ex act is s u e i n RES -GA

Hi g ht o wer

, LLC v. Go l

s h a n i

, i n wh i ch we d et erm i n ed wh et h er “ an as s ig n ee t o a d eb t

[h a s ] s t an d i ng to as s ert a cl ai m t h at t h e d eb to r frau du l en t l y co n v ey ed p ro p ert y in

v i o l at i o n o f

. . . th e UFTA.” 3 3 4 Ga. A p p

. at 1 7 6. Al t h o ug h n o t i n g t hat “ un d er t h e

p l ai n t erm s o f t h e UFTA, an as s i g n ee t o d eb t o rd i n ari ly wo u l d q u al ify as a ‘ cred i t o r’

wh o h as a ‘ cl ai m ,’ ” 2 2 i d

. at 1 7 8 (1 ) (a), we w ere n ev ert h el es s co n s t rai n ed by NeS mi th

an d o u r S upr e m e C our

t’ s inte r p r e ta tion of G e or gi a’ s An t i -As s i g n m en t St at ut e, OCGA

§ 4 4-1 2-2 4 , t o h ol d t hat b ecau s e s u ch cl ai m s are n ot as s i gn ab l e u n d er Geo rg i a l aw,

an as s i g n ee o f d eb t i s p recl u d ed fro m p u rs u i n g a p re-as s i g n m en t frau d ul en t t ran s fer

cl ai m u n d er t h e UFTA. Go l

s h a n i , 3 3 4 Ga. Ap p. at 1 80 (1 ) (a).

2 2 F o r p u rp o s es o f t hi s an al y s i s o n l y

, an d n o t wi t h s t an d i n g o ur h o l d i n g in

Di v is i o n 2

, we wi l l as s um e a d eb t or-cre d i t o r r e l at io n s h i p ex i s t ed b et ween t h e

t ran s fero rs o f t h e 2 0 0 8 Real Es t at e Tran s fers an d t h e Pl ai n ti ff.

18Al t h ou g h Pl ai n t i ff m ak es a n u m ber o f a r g u m e n t s 2 3 in an at tem pt t o l i m i t t h e

ap p li cat io n o f NeS

mi t h

, we p rev i o u s ly co n si d ered an d reject e d t h e s am e o r

s u b s t a n t i al l y s i m i l ar arg um en t s i n Go l s h a n i

. M o reo v er, Pl ai n t i ff’ s at t em p t to

d i s t i n gu i sh Go l

s h a n i as “ i rrel ev an t” t o t h e p res en t cas e by arg u i n g t hat o u r o p i n i o n

“ p res u m es t h a t t h ere i s a co n t ract w h i ch act u al ly as s ig n s a cl ai m o f frau d o r

frau du l en t t ran s fer” (em

p h as i s d el et ed ) i s li k ewi s e u n av ai l i n g. Go l s h a ni an d t h e

p res en t cas e are fact u al l y i n di s t i n g u i s h ab l e i n s o far as b o t h i nv o lv e s tan d i n g t o as s ert

a frau du l en t t ran s fer cl ai m b as ed o n t h e as s ig n m en t o f a d eb t

.

It i s al s o i m

p o rt an t t o n o t e, as we d i d i n Go l sh a n i

, t h at t h e Gen eral As s em b l y

am en d ed t h e UFTA i n 2 0 1 5 s o t h at t h e t erm “ cred i t o r” i s n o w d efi n ed as “ a p ers o n

wh o has a cl ai m

, r eg a r d l es s o f wh en t h e p er

s o n a cq u i r ed t h e cl a i m, t o g et her wi t h a n y

s u cces s o r s o r a s s i g n s. ” OCGA § 1 8 -2 -7 1 (4 ) (ad d it i o n al l an g u ag e i t a l i ci zed ).

Ad d i t i o n al l y

, t h e 20 1 5 am en d m en t ad d ed s u b s ect i o n (c) t o OCGA § 1 8-2 -7 4

, s o t h at

s ect i on n o w p ro v i d es t hat “ [i ] f a cred i t o r i s a s u cces s o r o r as si g n ee, a ri g h t o f act i o n

u n d er s u bs ect i o n (a) of t h is Co d e s ect i o n i s au t om at i cal ly as si g n ed t o s u ch s u cces s o r

2 3 Go l sh an i was d eci d ed o n Oct o b er 1 6

, 20 1 5

, an d ap p el lan t ’ s i n i t ial b ri e f t o

t h i s Co u rt i n t h i s cas e was fi led o n Au g u s t 3 1

, 2 0 1 5 an d it s rep l y b ri ef was fi l ed o n

Oct o b er 8

, 2 0 15

. T h u s

, ap p el l an t fi rs t p os i t ed t h e s e a r g um en ts in it s s u p pl em en t al

b ri ef fi l ed aft er o ral arg um en t

.

19o r as s i g n ee.” Ho wev er, th es e am en d m en t s on l y ap p l y t o t ran s fers m ad e o r o b li g at i on s

i n cu rred o n o r aft er J u ly

1 , 2 01 5 , an d o n ly

t o a ri g h t o f act i o n accru i n g aft er J u l y 1

,

2 0 1 5

, an d are of n o effect h ere. See Ga. L

. 2 0 1 5, p p

. 9 9 6

, 1 0 2 9

, § 7

- 1 (d ).

Acco rd in g ly

, b as ed o n t he fo reg o i n g

, we affi rm t h e t ri al co u rt ’ s o rd er t o t h e ex t en t i t

d et erm i n ed th at Pl ai n ti ff d o es n o t h av e s tan d i n g u n der t h e UFTA t o co nt es t t h e

t ran s fers t h at o ccu rred p ri o r t o t h e as si g n m en t o f t h e Lo an

.

4 . Las t l y , we t u rn t o t h e o n l y t ran s fer at i s su e in t h i s cas e t h at was m ad e b y a

J u d g m en t Deb t o r

— t h e It em Ni n e W i l l Tru s t Tran s fer. Al t h o u g h Defen d an t s

ack n owl ed ge, at l eas t i m

p l i ci t l y an d as s u m i ng th e Lo an was effect i v el y as s ig n ed

, t h at

Pl ai n t i ff h as s t an di ng as a cred i t o r u n d er t h e UFTA t o p u rs u e t h i s cl ai m , t hey arg u e

t h at s um m ary j u d gm en t was al s o p ro p erl y gran t ed as t o t h i s frau d ul en t t ran s fer cl ai m

b ecau s e i t i s t i m e-b arred p urs u an t t o OCGA § 1 8

- 2 -7 9 (1 ). 2 4 Th at s ect i o n

, wh i ch

ap p li es t o cl ai m s su ch as t h e o n es i n th i s cas e b ro u g ht u n d er t h e a c t u al frau d

p ro v is i o n s o f OCGA § 1 8-2 -7 4 (a) (1 ), p ro v i d es t h at “ [a] cau s e o f act i o n wi t h res p ect

t o a frau d u l en t t ran sfer or o b li gat i o n

. . . i s ex t i n gu i s hed u n les s act i o n is b ro u g h t

. .

. wi t h in fo u r y ears aft er t he t ran s fer was m ad e or t h e o bl i g at i o n was i ncu rred o r, i f

2 4 Al t h o ug h rai s ed b el ow, t h e t ri al co urt was n o t req u i r e d t o reach t hi s i s s u e

b as ed o n i t s det erm i n at i o n th at Pl ai n t i ff co u l d no t m ai n t ai n an y o f i t s cl ai m s ag ai n s t

an y o f t h e d efen dan t s b ecau s e t h e as s ig n m en t o f t he Lo an was i n effect i v e.

20l at er, w i t hi n o n e ye a r aft er t h e t ran s fer o r ob l i g at io n was o r co ul d hav e reas o n ab l y

h av e b een d i s co vered b y

t h e cl ai m an t .” OCGA § 1 8-2 -7 9 (1 ) (2 0 1 4 ).

Th e p art i es ap p ear t o ag ree t h at t h e It em Ni ne W i l l Tran s f e r o c c u r red o n o r

ab o ut J an u ary 1

, 20 1 0

, an d t h e reco rd s h o ws t h at Pl ai n t i ff fi rs t s ou g h t t o as s ert a

cl ai m b as ed o n t h i s t ran s fer o n J an u ary 9

, 2 0 1 4

, at t he earl ies t

, wh en it s o u g h t l eav e

t o am en d i t s co m

p l ai n t . Th us , t h i s cl ai m

i s t i m e b arred u n l es s Pl ai n t iff i s en t i t l ed to

i n v o k e t h e o n e year d i sco v ery p eri o d al s o i n cl u d ed i n OCGA § 1 8 -2 -7 9 (1 ), wh i ch

b eg in s t o ru n wh en t h e t ran sfer “ was or co ul d reas o nab l y h av e b een d i s co v ered ” by

t h e p art y seek i n g rel i ef u n d e r t h e UFTA. As Defen d an t s ack n o wl ed g e, i s s u es

co n cern in g a p l ai n t i ff’ s d i l i g en ce u s u al l y m u s t b e res o l v ed b y t he t ri er of fact

, b ut

n ev ert h el es s u rg e u s t o d eci d e t h i s i ss u e as a m at t er o f l aw. Ho w ev er, we d ecl i n e to

d o s o h ere in l i g ht o f t h e fact t h at t h e reco rd m o re t h an s t ro ng l y su g ges t s t h at effo rt s

were m ad e t o co n ceal so m e o r al l o f t h e t ran s fers fro m Pl ai n t i ff an d es p eci al l y s i nce

t h e t ri al co urt h as n o t co n s i d ered t h is i s s u e i n th e fi rs t i n s t an ce. Acco rd i n g l y

, t h i s cas e

i s rem an d ed t o t h e t ri al co u rt fo r fu rt her p ro ceed i n g s o n t h i s i s s u e.

Ju d g men t af fi r med i n p a r t a n d r ever s ed i n p a rt

, an d ca se r ema n d

ed wi th

d i r ect i o n. Ba r n es , P. J., a n d Ra y, J., co ncu r

.

21