Morganroth & Morganroth v. Delorean

Plaintiffs/appellees Mayer Morganroth and his law firm, Morganroth and Morganroth (hereafter Morganroth), filed this diversity suit to set aside a transfer of property as fraudulent. Morganroth pleaded three theories for relief, but the only one which is relevant to this appeal is the theory that the transfer of the property should be set aside under Utah Code Ann. § 25-6-6(1) (1998). That statute deems a transfer fraudulent without requiring proof of actual intent to defraud when the transfer is not made for a reasonably equivalent value; the transferor is either insolvent at the time or rendered insolvent by the transfer; and the creditors claim arose before the transfer.