Summary
The Texas Eighth Court of Appeals held that Herc Rentals’ fraudulent-transfer claims under the Texas Uniform Fraudulent Transfer Act were extinguished by the statute of repose. The court concluded that Herc failed to present evidence establishing that the alleged transfer of goodwill could not reasonably have been discovered within the four-year repose period. The court reversed the trial court’s judgment and rendered judgment dismissing Herc’s suit.
Holdings
- Herc's TUFTA claim was extinguished by the four-year statute of repose because the alleged transfer of goodwill occurred on October 18, 2016, and Herc filed suit on August 5, 2021.
- Herc failed to meet its burden to prove that it could not reasonably have discovered the alleged transfer of goodwill within the four-year repose period.
Questions Presented
- Whether Herc's TUFTA claim under Texas Business and Commerce Code section 24.005(a)(1) was barred by the four-year statute of repose.
- Whether Herc proved that the discovery-rule provision extended the repose period because the alleged transfer could not reasonably have been discovered earlier.
Disposition
reversed
Cases Cited (16)
- KCM Fin. LLC v. Bradshaw, 457 S.W.3d 70, 89 (Tex. 2015)(followed)
- Corpus v. Arriaga, 294 S.W.3d 629, 634 (Tex. App.—Houston [1st Dist.] 2009, no pet.)(followed)
- Qui Phuoc Ho v. MacArthur Ranch, LLC, No. 05-14-00741-CV, 2015 WL 5093273, at *3 (Tex. App.—Dallas Aug. 28, 2015, pet. denied) (mem. op.)(followed)
- Wylie v. Simmons, No. 02-19-00241-CV, 2020 WL 7776796, at *18 (Tex. App.—Fort Worth Dec. 31, 2020, pet. denied) (mem. op.)(followed)
- Enshikar v. Zaid, No. 14-18-00933-CV, 2020 WL 6203348, at *7 (Tex. App.—Houston [14th Dist.] Oct. 22, 2020, no pet.) (mem. op.)(followed)
- Nathan v. Whittington, 408 S.W.3d 870, 874 (Tex. 2013)(followed)
- Zenner v. Lone Star Striping & Paving, L.L.C., 371 S.W.3d 311, 315 (Tex. App.—Houston [1st Dist.] 2012, pet. denied)(followed)
- Ching Enters., Inc. v. Barahona, No. 14-14-00171-CV, 2016 WL 4706074, at *4 (Tex. App.—Houston [14th Dist.] Sept. 8, 2016, pet. denied) (mem. op.)(followed)
- PPG Indus., Inc. v. JMB/Houston Ctr. Partners Ltd. P'ship, 146 S.W.3d 79, 93–94 (Tex. 2004)(followed)
- McGalliard v. Kuhlmann, 722 S.W.2d 694, 696–97 (Tex. 1986)(followed)
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