Legal Memorandum: Parties to a Fraudulent Transfer Claim

Issue: Whether a transferee of property who claims an interest therein, is a necessary party to the resolution of a claim of fraudulent transfer

In a case involving a provision of the Uniform Fraudulent Transfer Act, the law is clear that “a grantee or transferee of property who claims an interest therein, is a necessary and indispensable party to the resolution of a claim of fraudulent transfer” and, in her absence, it is reversible error to grant a motion to execute on an allegedly fraudulently transferred asset.  Tanaka v. Nagata, 868 P.2d 450, 453-54 (Haw. 1994); see Chrysler Credit Corp. v. Peterson, 342 N.W.2d 170, 172 (Minn. Ct. App. 1984).

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