TC improperly granted SJ in favor of appellee on appellants’ claims regarding fraudulent transfers and priority of their lien

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This case involves an attempt by Katherine and Gary Hoesman to collect a judgment ordered in their favor and against Julia Sheffler, who converted money from a trust fund established for the benefit of the Hoesmans. The Hoesmans appeal the trial court’s order granting summary judgment to Constance Johnson, Julia’s mother, and denying the Hoesmans’ motions to amend their complaint and to consolidate this case with another. On appeal, the Hoesmans raise four issues, which we consolidate and restate as:

(1) Whether the trial court improperly granted summary judgment on the Hoesmans’ fraudulent transfer claim;

(2) Whether the trial court improperly granted summary judgment on the Hoesmans’ claim that they held a statutory lien on property transferred to Constance and that this lien has priority over a security interest held by Constance; and

(3) Whether the trial court abused its discretion in denying the Hoesmans’ motions to amend their complaint and their motions to consolidate this suit with a prior related suit.
Conclusion (slip op. at 23):  We conclude the trial court improperly granted summary judgment in favor of Constance, and remand for further proceedings. The trial court’s denial of the Hoesmans’ motions to consolidate and for leave to amend their complaint are not properly before this court, and we therefore decline to address the propriety of these orders. Reversed in part and remanded. 

Key Analysis (slip op. at 15, 18):  Material questions of fact remain as to whether the transfers from Julia and Daniel to Constance were made in good faith and free of fraudulent intent . . . a question of material fact remains as to her knowledge of the lien . . .

About Bose McKinney & Evans LLP

Bose McKinney & Evans LLP is a business law firm, headquartered in Indianapolis, Indiana, serving both publicly held and privately held businesses, governmental entities and high-growth industries. Our clients include Fortune 100 companies, international manufacturers, national and regional financial institutions, agribusinesses, sports teams, university-incubated start-ups, media, utilities, cities and schools, to name a few. We strive to build strong relationships with our clients as key business advisors, to exceed expectations in the quality of our work, to be knowledgeable about our clients’ businesses and sectors, to be responsive to service needs and to continually seek to improve the delivery of client services. Our ultimate focus is on our clients.
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