Schmidt v. HSC, Inc.

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Petitioners filed a complaint against Respondents for violations of the Uniform Fraudulent Transfers Act (UFTA). The circuit court dismissed the action without discussing Respondents’ argument that Petitioners’ claim was untimely. Petitioners appealed. Respondents cross-appealed, asserting that Petitioners’ UFTA claim was time-barred. The intermediate court of appeals (ICA) ruled on the statute of limitations issue raised in the cross-appeal and concluded that Petitioners’ UFTA claim should have been dismissed as untimely, holding that the one-year limitations period begins when a transfer, rather than its fraudulent nature, is discovered. The Supreme Court vacated the judgment of the ICA, holding (1) the one-year limitations period under UFTA begins on the date a transfer commences when a plaintiff discovers or could reasonably have discovered a transfer’s fraudulent nature; and (2) the ICA erred in its ruling on the statute of limitations issue and should have decided the merits of the claim raised in Petitioner’s appeal. Remanded. View "Schmidt v. HSC, Inc." on Justia Law