Frank v. McLain (In Re Peet Packing Co.)

OPINION DETERMINING THAT “FAIR CONSIDERATION” UNDER MICH.COMP.LAWS § 566.19(1) IS CONSIDERED FROM VIEWPOINT OF TRANSFEREE

ARTHUR J. SPECTOR, Bankruptcy Judge.

The issue to be decided in this proceeding is whether the transferee of a constructively fraudulent transfer, who without knowledge of the fraud and in good faith suffers a detriment in kind and amount that is a fair equivalent to what he received from the transferor, is a “purchaser for fair consideration” who is immunized from recovery under the Michigan Uniform Fraudulent Conveyance Act. The Court answers this question in the…