![]() One of the biggest misconceptions about fraudulent transfer law, something which is oft-repeated at asset protection seminars, is that "if a Court finds a fraudulent transfer, the only thing it can do is to reverse the transfer." * * *"Actual malice" requires proof that the debtor acted with (1) hatred, ill will, or a spirit of revenge, or (2) a conscious disregard for the rights of others that had a great probability of causing substantial harm. * * * In order to recover punitive damages, a creditor must establish the underlying cause of action for the fraudulent transfer and that the debtor acted with actual malice when making the fraudulent transfer. * * * Under Ohio law, punitive damages and attorney fees may be awarded in fraudulent conveyance cases. ![]() >If appropriate, the trial court may also determine whether punitive damages and attorney fees are warranted. * * * A person injured by fraud is entitled to such damages as will fairly compensate him for the wrong suffered that is, the damages sustained by reason of the fraud or deceit, and which have naturally and proximately resulted therefrom. * * * The amount of damages recoverable is fact-specific and requires consideration of what is necessary to compensate the creditor for harm flowing from the fraud. >The Uniform Fraudulent Transfer Act provides not only for the setting aside of a fraudulent transfer to the extent necessary to satisfy a debt a creditor may also obtain "any other relief that the circumstances may require." * * * Other laws, including the common law of fraud, supplement the UFTA. In two succinct paragraphs, the Appellate Court disagreed: ![]() On appeal, among many other things, Debtor complained that the Creditor was awarded damages for the fraudulent transfers (instead of just being able to set aside the transfers), and of the punitive damages and attorney's fees. The Court then tacked on another $28,000 in attorney's fees to the award. The jury apparently didn't believe any of it, and awarded the Creditor $11,989 in actual damages, plus another $35,968 in punitive damages. ![]()
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