Opinion ID: 160061
Heading Depth: 3
Heading Rank: 5

Heading: Fraudulent Transfer Claim

Text: 58 NTPCA contends that the trial court erred when it granted summary judgment, sua sponte, against it on NTPCA's claim that MCNB violated the Oklahoma Uniform Fraudulent Transfer Act (the Act). The Act provides, in pertinent part: A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation . . . with actual intent to hinder, delay, or defraud any creditor of the debtor . . . . Okla. Stat. Ann. tit. 24, § 116. Where a fraudulent transfer has occurred, a creditor may avoid the transfer to the extent necessary to satisfy the creditor's claim. Okla. Stat. Ann. tit. 24, §119. NTPCA alleged in its complaint that MCNB violated the Act when it entered into a $200,000 loan agreement with the Clarks on November 2, 1995. 59 The entry of summary judgment sua sponte is warranted only when the following conditions are met: (1) there is no dispute of material fact; and (2) the losing party has had an adequate opportunity to address the issues involved, including an adequate time to develop any facts necessary to oppose summary judgment. See David v. City & County of Denver, 101 F.3d 1344, 1359 (10th Cir. 1996). 60 MCNB concedes that it did not specifically argue that the fraudulent transfer claim should be dismissed in its Motion for Summary Judgment or supporting brief. The record reflects that MCNB did state in its Motion for Summary Judgment that liens granted to MCNB by the Clarks were made with adequate consideration and were not made with the intent to hinder, delay or defraud NTPCA. MCNB argues that we should affirm the grant of summary judgment to it because NTPCA addressed the issue in its Response in Opposition to the Motion for Summary Judgment. In its Response, NTPCA disputed MCNB's assertion that the liens were not granted with the intent to hinder, delay or defraud NTPCA by stating that the question of whether the lien and mortgages granted by the Clarks in connection with a purported November 2, 1995 loan . . . was made without adequate consideration and with the intent to hinder, delay or defraud NTPCA, a creditor of the Clarks is a disputed fact. NTPCA also directed the district court's attention to evidence set forth in NTPCA's Response to the Individuals' motion for summary judgment as support for this proposition. 61 We need not determine whether NTPCA had an adequate opportunity to address the issue in its Response brief, because our review of the record leads us to the conclusion that there are genuine issues of material fact in connection NTPCA's fraudulent transfer claim. The record reflects that the Clarks entered into the $200,000 loan agreement with MCNB on November 2, 1995 approximately two weeks after the Clarks had defaulted on the NTPCA loan. Moreover, Wyrick conceded in his deposition that, at the time MCNB and the Clarks entered into that loan agreement, he was aware that the Clarks were in default on the NTPCA loan. In addition, the Clarks pledged assets in connection with this loan that had not been pledged in connection with MCNB and the Clarks' prior loan agreement. These assets were equipment and real estate owned by the Clarks. We find that this evidence is sufficient to establish a genuine issue of material fact as to whether the Clarks entered into the November 2, 1995 loan with MCNB in order to avoid NTPCA's claim against his assets and was therefore an obligation incurred by the Clarks with the intent to hinder NTPCA's attempts to recover the amount remaining due on the Note. Thus, we find that the district court improperly granted summary judgment on the fraudulent transfer claim.