Sunday, April 2, 2017
Motorworld, Inc. v. William Benkendorf, et al. (A-64-15;
Motorworld, Inc. v. William Benkendorf, et al.
The record reveals no reason to abandon the corporate form. By virtue of the Release, Motorworld received no value at all, let alone value commensurate with the loss of its sole asset: a debt in the amount of $600,000 plus accumulating interest and penalties. The disputed transfer was not made for “reasonably equivalent value” under N.J.S.A. 25:2-27(a), and plaintiffs established all elements of a constructively fraudulent transfer.