Section 64 Transferee Liability in Equity

• Library: Tax Law 2009

Section 144.155, RSMo 2000, cases involving a transferee in equity are patterned after those originating under Chapter 428, RSMo, which allow creditors to set aside “fraudulent conveyances” on equitable grounds. When transferee liability is asserted under an equitable remedy, it is based on either actual or constructive fraud. The relief generally obtained in this action is to subject the transferred property (or its sales proceeds) to collection. Madden v. Fitzsimmons,150 S.W.2d 761 (Mo. App. E.D. 1941); Peikert v. Repple, 114 S.W.2d 999 (Mo. 1938); Castorina v. Herrmann,104 S.W.2d 297 (Mo. 1937). See generally Mo. Creditors’ Remedies, Chapter 7 (MoBar 5^th ed. 1999 and Supp. 2004). The “fraudulent conveyance” theory of recovery is based on the principle that persons must be just before they are generous and that...