McKay v. Longman

The Supreme Court affirmed the judgment of the trial court in this action seeking, inter alia, to enforce a foreign judgment, holding that a plaintiff who is neither a party to a mortgage nor an intended beneficiary of the mortgage has no standing to challenge the enforceability of that mortgage under the Connecticut Limited Liability Company Act, Conn. Gen. Stat. 34-130.The trial court entered judgment in part for Plaintiff as against the named defendant and entered judgment for defendant Manufacturers and Traders Trust Company (M&T Bank) and set aside certain fraudulent transfers and imposed constructive trusts on certain properties. The Supreme Court affirmed, holding (1) Plaintiff did not have standing to challenge the M&T Bank mortgage; (2) specified transfers between an owner of property and the limited liability companies of which he is either an officer or equity holder constitute fraudulent transfers under the Connecticut Uniform Fraudulent Transfer Act, Conn. Gen. Stat. 52-552e(a)(1) and (2) and 52-552f; and (3) the doctrine of reverse piercing of the corporate veil is a viable remedy in Connecticut, and the trial court properly applied it to the facts of this case. View "McKay v. Longman" on Justia Law