News & Noteworthy

Case Development - Bruce Bronster and David Graff Prevail on Complex Turnover Petition for Client
APRIL 10, 2013

On April 5, 2013, Bruce Bronster (Partner New York) and David Graff (alumnus) prevailed on a complex multi-million dollar turnover petition on behalf of client ACE Investors, LLC ("Ace"). After several years of litigation in the Utah Federal courts, ACE retained the team at Windels Marx to collect a Judgment against various parties other than the Judgment debtor. After domesticating the Utah Judgment, Windels Marx commenced a turnover petition in the Southern District of New York seeking return of certain transferred assets (including realty, membership interests in various LLC's and endorsement of seven promissory notes) to the Judgment debtor from the various third parties for a subsequent transfer to ACE. The team asserted claims that various transfers made to the third parties by the Judgment debtor constituted void transfers because the transfers were directed by persons without legal authority to do so and amounted to fraudulent conveyances.

After hearing extensive argument from Mr. Graff, the Court not only accepted the arguments in all respects Ordering the turnover of assets sufficient to satisfy the Judgment, but also awarded an the unusual remedy of post Judgment attachment of the sought assets, restraints on all property held by the Judgment Debtor and any of the third party entities (or any entities controlled by them), all attorney's fees and costs incurred over the past several years of litigation, and interest running at 12 percent. The Court Ordered that the turnover and all other aspects of the Order are affected in the presence of the Court within 10 days. The Court threatened contempt from the bench in the event any element of its Order was not fully complied with. Working with Utah counsel, the Windels Team accomplished this result within months of its retention.

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