Opinion ID: 2054217
Heading Depth: 3
Heading Rank: 2

Heading: Fraudulent Conveyances: the Law

Text: A conveyance or assignment ... of an estate or interest in land or its rents and profits ... with the intent to hinder or defraud persons having just claims or demands, of their lawful suits, damages, or demands, is void as against the persons so hindered or defrauded. D.C.Code § 28-3101 (1991); see also J.R. Beaton Co. v. Berberich, 77 U.S.App.D.C. 377, 378, 135 F.2d 831, 832 (1943) (vital question in determining whether debtor's conveyances are fraudulent is good faith of transaction). D.C.Code § 28-3101 also provides that [t]his section does not affect the title of a purchaser for value, unless it appears that he [or she] had previous notice of the fraudulent intent of his [or her] immediate grantor. According to D.C.Code § 28-3101, therefore, the transfer of CUIC's building to CUG was a fraudulent conveyance if (1) it was accomplished with the intent to hinder or defraud Smith in exercising its right of execution, and (2) either CUG was not a purchaser for value or CUG had previous knowledge of the fraudulent intent of CUIC.