Mills v. Miller Harness Co., Inc.

Miller Harness Company, Inc. (Miller), sued Carroll C. Mills to set aside certain payments made to Mills by Stombock’s Fine Riding Apparel Ltd. of Virginia, Inc. (Stombock), on the ground that the payments constituted a fraudulent conveyance in violation of Code § 55-80. * The trial court set aside the payments and awarded Miller an in personam judgment against Mills.

The primary question in this appeal is whether a corporation’s preferential payment of a bona fide debt to a creditor who is in complete control of the corporation’s affairs is, as a matter of law, a fraudulent conveyance in…