In the Matter of Steinberg v. Levine

• Decision Date: 19 April 2004
• Docket Number: 2003-01782.
• Citation: In the Matter of Steinberg v. Levine, 6 A.D.3d 620, 774 N.Y.S.2d 810, 2004 NY Slip Op 2955 (N.Y. App. Div. 2004)
• Parties: In the Matter of ROBERT E. STEINBERG, Respondent, v. LAUREL LEVINE, Appellant, and SANFORD C. LEVINE, Respondent.
• Court: New York Supreme Court — Appellate Division

6 A.D.3d 620

774 N.Y.S.2d 810

2004 NY Slip Op 02955

In the Matter of ROBERT E. STEINBERG, Respondent, v. LAUREL LEVINE, Appellant, and SANFORD C. LEVINE, Respondent.

2003-01782.

Appellate Division of the Supreme Court of the State of New York, Second Department.

April 19, 2004.

In a proceeding pursuant to CPLR 5225 (b) to set aside a transfer of assets, Laurel Levine appeals, as limited by her brief, from so much of a judgment of the Supreme Court, Westchester County (Colabella, J.), entered January 24, 2003, as, after a hearing, determined that the transfers of assets to her by Sanford Levine were made with the general intent to hinder, delay, and defraud present or future creditors of Sanford Levine and therefore should be disregarded, and is in favor of the petitioner and against her in the principal sum of $41,247.

Ordered that the judgment is affirmed insofar as appealed from, with costs.

Debtor and Creditor Law § 276 provides that "[e]very conveyance made ... with actual intent ... to hinder, delay, or defraud either present or future creditors is fraudulent." The requisite intent required by this section need not be proven by direct evidence, but may be inferred from the circumstances surrounding the allegedly fraudulent transfer (see Marine Midland Bank v Murkoff, 120 AD2d 122 [1986]). In determining whether a conveyance was fraudulent, the courts will consider "badges of fraud," which are circumstances that accompany fraudulent transfers so commonly that their presence gives rise to an inference of intent (Pen Pak Corp. v LaSalle Natl. Bank of Chicago, 240 AD2d 384 [1997]). These badges of fraud include lack or inadequacy of consideration, family,...