this issue see Daniel Jouppi, Comment,
Saving No One: Unifying Approaches
to the UVTA Savings Clause, 52 Wake
Forest L. Rev. 695 (2017).
After being unsuccessful before
the North Carolina Court of Appeals,
the new lender in KB Aircraft filed a
petition for discretionary review with
the North Carolina Supreme Court. The
petition was allowed. The parties fully
briefed the issues and the North Carolina
Supreme Court held oral argument in
the case. However, the North Carolina
Supreme Court ultimately ruled that the
petition for discretionary review was
improvidently allowed. The result was
that the North Carolina Supreme Court
did not weigh in on the issue, which left
the North Carolina Court of Appeals
ruling as the final word.
So, what is the takeaway for creditors
who litigate such claims in jurisdictions
which have adopted the minority rule,
or which have not ruled on the issue?
Creditors cannot sit back and wait
for their underlying claims to be fully
adjudicated before investigating, and
if warranted, taking action to set aside
suspect conveyances. If they do, they
run the risk of "winning the battle but
losing the war" by being unable to have
fraudulent conveyances of assets set
aside in order to collect a judgment they
obtain in the underlying action.
Trust Estate of Kepoikai (In re Maui Indus. Loan & Fin.
Co.), 454 B.R. 133, 2011 Bankr. LEXIS 1719 (D. Hawaii
2011); State Farm Mut. Auto. Ins. Co. v. Cordua, 834 F.
Supp. 2d 301, 2011 U.S. Dist. LEXIS 138582 (E.D. Pa.
2011); Schmidt v. HSC, Inc., 136 Haw. 158, 358 P.3d
727 (Hawaii 2015); Janvey v. Democratic Senatorial
Campaign Comm., Inc., 712 F.3d 185, 2013 U.S. App.
LEXIS 5321 (5th Cir. 2013); and William A. Graham Co.
v. Haughey, 646 F.3d 138, 2011 U.S. App. LEXIS 9906
(3rd Cir. 2011); Duran v. Henderson, 71 S.W.3d 833,
2002 Tex. App. LEXIS 1394, rehearing overruled, 2002
Tex. App. LEXIS 1968 (2002); Freitag v. McGhie, 133
Wn.2d 816, 947 P.2d 1186 (1997); Rappleye v. Rappleye,
2004 Ut. App. 290, 99 P.3d 348, cert. denied, 106 P.3d
743, 2004 Utah LEXIS 261 (2004); Belfance v. Bushey
(In re Bushey), 210 B.R. 95 (B.A.P. 6th Cir. 1997);
Fidelity Nat'l Title Ins. Co. v. Howard Savings Bank, 436
F.3d 836, 839 (7th Cir. 2006); Ezra v. Seror (In re Ezra),
537 B.R. 924 (B.A.P. 9th Cir. 2015).
Dist. LEXIS 116867 (NDOH 2012); Pereyron v. Leon
Constantin Consulting, Inc., 2004 Del. Ch. LEXIS 46
(Del Ch. 2004); Montoya v. Tobey (In re: Ewbank) 359
B.R. 807 (Bankr. D. N.M. 2007); Gulf Ins. Co. v. Clark
20 P.3d 780 (Mont. 2001); National Auto Serv. Ctrs.,
Inc. v. F/R 550, LLC, 192 So.3d 498 (Fla. Dist. Ct. App.
2016).