A. J. Calhoun, Successor Trustee of Stax Records, Inc. v. Johnny Baylor and Koko Records, Inc.

MERRITT, Circuit Judge.

Defendants, Johnny Baylor and KoKo Records, Inc., appeal a jury verdict that would require them to return $2.5 million received as royalties and promotional fees from Stax Records, Inc., a company now bankrupt. The bankrupt’s trustee brought suit under section 70(e) of the Bankruptcy Act, now 11 U.S.C. § 544(b), claiming that under the Tennessee law incorporated by the federal statute, the $2.5 million constituted a fraudulent conveyance recoverable by the trustee. Defendants claim the evidence is insufficient to support a finding of fraud and make other claims of error…