Mitchell v. Lyons Professional Services, Inc.

MEMORANDUM DECISION AND ORDER

COGAN, District Judge.

The issue posed in this case is whether the customer accounts of an insolvent ser*558vice company, where each customer had the right to terminate service at any time, can nevertheless have value, such that if the principal of the business moves those customers to a third party in exchange for money, and the company receives nothing (leaving creditors of the company without recourse), the transaction is avoidable as a fraudulent conveyance under New York’s enactment of the Uniform Fraudulent Conveyance Act. I answer that question in the…