Opinion ID: 26067
Heading Depth: 2
Heading Rank: 2

Heading: Counts Two, Three and Four: Fraudulent Transfer.

Text: 13 Trinity complains that the Taylor's redemption of the property from the Serses is avoidable as a transfer made to defraud the Serses' creditors, or made without the Serses' receiving reasonably equivalent value, and made while the Serses were insolvent. Tex. Bus & Com. Code Ann. §§ 24.005(a)(1) & (2), 24.006(a) (Vernon 1987 & Supp. 2000). The district court dismissed the fraudulent transfer counts in part because no transfer from the Serses to Taylor occurred under Louisiana law. 2 We agree. 14 Under the Louisiana Civil Code, The exercise of redemption does not involve a new sale. When the right to redeem is exercised, it effects a dissolution of the sale and of the transfer of the property. . . . La. Civ. Code Ann. art. 2567, comment (c) (West 1996). A sale with a right of redemption is distinguished from a resale by the very fact that the right to take back the property is stipulated in the act of sale itself and not in a subsequent act. Pitts v. Lewis, 7 La. Ann. 552, 552-53 (1852). No new transfer occurred. 15