Hometown 2006-1 1925 Valley View v. Prime Income Asset Management

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Three publicly traded real estate companies (the Publics) and Pillar filed a declaratory judgment against Prime LLC, Prime Inc., and Hometown in state court, seeking a declaration that the Publics and Pillar were not the alter egos of Prime LLC and Prime Inc. Hometown removed to federal district court and filed the instant action against Prime LLC as well as Prime Inc., the Publics, Pillar, and individual defendants who served as officers or directors of Prime LLC, alleging, among other things, a claim for fraudulent transfer under the Texas Uniform Fraudulent Transfer Act (TUFTA), Tex. Bus. & Com. Code Ann. 24.001-.013. On appeal, Hometown argues that the district court should not have dismissed its TUFTA claims, and that finding Prime LLC's Advisory Agreements were not assets under TUFTA was error. Determining that it has subject matter jurisdiction, the court held that contractual payments due during a required sixty-day notice period prior to termination of contractual rights constitute "assets" under TUFTA. Accordingly, the court reversed the dismissal of the TUFTA claims and remanded for further proceedings. View "Hometown 2006-1 1925 Valley View v. Prime Income Asset Management" on Justia Law