Hart v. Pugh

Summary

Kay Allen Hart appealed a summary judgment favoring Verlon J. Pugh in her action alleging that the transfer of property was fraudulent under the Alabama Uniform Fraudulent Transfer Act. The Alabama Supreme Court held that Hart had not presented evidence that her former husband, Donald Hart, directed or orchestrated the transfer made by his mother under a power of attorney. Relying on Folmar & Associates, LLP v. Holberg, the court affirmed the judgment because the Act applied only to transfers made by the debtor and Hart’s arguments did not establish that this was such a transfer.

Holdings

1. The Act's fraudulent-transfer provisions apply to a transfer made by the debtor and, under Folmar & Associates, LLP v. Holberg, do not provide a claim based solely on a transfer by a third-party transferor. Because Hart failed to show that Donald Hart directed or orchestrated the conveyance made by Brown under the power of attorney, the transfer could not be treated on this record as Donald's transfer.
2. Summary judgment for Pugh was proper because Hart presented no evidence creating a genuine issue of material fact that Donald directed or orchestrated the transfer.

Questions Presented

1. Whether the Alabama Uniform Fraudulent Transfers Act applies to a transfer made by a debtor's attorney in fact or other third-party transferor.
2. Whether the evidence created a genuine issue of material fact that Donald Hart directed or orchestrated the transfer of the Bear Point property to Pugh.
3. Whether summary judgment for Pugh was proper despite Hart's contention that the facts required further discovery and showed fraudulent intent.

Disposition

affirmed