Centerpoint Energy Services, Inc. v. Halim

Dist. Ct. did not err in granting plaintiff-creditor’s motion for summary judgment in action under Fraudulent Transfer Act, where record showed that defendants-debtors transferred all assets of first entity to second entity that was also controlled by defendants some four months after $1.7 million judgment had been entered in favor of plaintiff and against first entity, and where: (1) said transfer was made without first entity receiving any equivalent value in exchange for said transfer; and (2) defendants reasonably should have believed that first entity would incur debts beyond its ability to pay them. Record failed to support defendant’s claim that first entity was adequately funded through alleged injection of $15.1 in net capital. Moreover, record would support finding that owners of first and second entities were personally liable for $1.7 million judgment under alter ego theory, given commingling of personal and business funds and given lack of documentation with respect to allocation of assets.