MDG Supply, Inc. v. Calmes

MDG Supply, Inc., brought action to cancel a warranty deed from Diversified Investments, Inc., to William Ellis as a conveyance in fraud of creditors. The deed purported to convey certain real property which was already subject to a court ordered sale to satisfy a judgment obtained by appellant. The lower court dismissed the action as barred by HRS § 416-33 since it was not brought within 90 days of the recording of the deed.

We reverse. HRS § 416-33 allows a corporation to make a voluntary transfer of all or substantially all of corporate assets by affirmative vote of three-fourths of the…