Cherry Cmty. Org. v. Sellars

Summary

The Court held that defendants could not invoke the Uniform Voidable Transactions Act’s good-faith-purchaser defense because, as co-principals in a joint real-estate venture, they were charged with knowledge of StoneHunt’s fraudulent intent under common-law agency principles. The Court relied on unchallenged and competent findings showing an insider transfer, concealment, pending litigation, transfer of substantially all assets, inadequate consideration, and insolvency. The Court did not reach plaintiff’s argument that the transaction was independently a per se violation of the Unfair or Deceptive Trade Practices Act because that issue was outside the scope of discretionary review.