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Liability of Transferee for Creditor's Attorneys Fees

If a debtor fraudulently conveys property to a third party, and the creditor expends legal fees recovering the property in a proceeding supplementary, can the creditor recover its attorneys fees from the third party who received and was in possession of the property. The answer, is "no" according to the decision of Florida’s Fourth District Court of Appeals in the case of Gaedeke Holdings, Ltd. v. Mortgage Consultants, Inc., 877 So. 2d 824. The court said that attorneys fees may be taxed against the debtor, and the applicable statute has no provisions for assessing fees against third party transferees

November 13, 2004 in Court Decisions | Permalink

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